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Evaluating a Nationwide Business Plan Competition
Last registered on October 24, 2017

Pre-Trial

Trial Information
General Information
Title
Evaluating a Nationwide Business Plan Competition
RCT ID
AEARCTR-0000078
Initial registration date
September 24, 2013
Last updated
October 24, 2017 7:27 AM EDT
Location(s)
Region
Primary Investigator
Affiliation
World Bank
Other Primary Investigator(s)
Additional Trial Information
Status
Completed
Start date
2011-10-01
End date
2015-07-31
Secondary IDs
Abstract
The program being evaluated is a business plan competition for young entrepreneurs in a large African country. It has the stated objective of encouraging innovation and job creation through the creation of new businesses and expansion of existing businesses. The program provides a four-day training course on preparation of a business plan to applicants who make it through a first stage, and then grants to winners selected in this second phase. The goal of this evaluation is to measure the impact of winning this program on business performance, including job growth, profitability, and capital accumulation.
External Link(s)
Registration Citation
Citation
McKenzie, David. 2017. "Evaluating a Nationwide Business Plan Competition." AEA RCT Registry. October 24. https://doi.org/10.1257/rct.78-2.0.
Former Citation
McKenzie, David. 2017. "Evaluating a Nationwide Business Plan Competition." AEA RCT Registry. October 24. http://www.socialscienceregistry.org/trials/78/history/22614.
Sponsors & Partners

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Request Information
Experimental Details
Interventions
Intervention(s)
The program provides a four-day training course on preparation of a business plan to applicants who make it through a first stage, and then grants to winners selected in this second phase.
Intervention Start Date
2012-03-31
Intervention End Date
2013-12-31
Primary Outcomes
Primary Outcomes (end points)
Employment, Profitability, Sales
Primary Outcomes (explanation)
Pre-analysis plan provides key details
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
Design is in pre-analysis plan
Experimental Design Details
Design is in pre-analysis plan
Randomization Method
Randomization by Computer
Randomization Unit
Individual Entrepreneur
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
1 cluster
Sample size: planned number of observations
1841 firms
Sample size (or number of clusters) by treatment arms
729 treated
1112 control
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan
Analysis Plan Documents
McKenzie_preanalysisplan_Sept23.pdf

MD5: 0ff68ec14478525a29cbd1c36cd9a5e0

SHA1: 715e3d78f2fd76427b647aa2861df3d10c4f8598

Uploaded At: November 08, 2013

Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
Yes
Intervention Completion Date
January 15, 2014, 12:00 AM +00:00
Is data collection complete?
Yes
Data Collection Completion Date
February 15, 2015, 12:00 AM +00:00
Final Sample Size: Number of Clusters (Unit of Randomization)
1841
Was attrition correlated with treatment status?
Yes
Final Sample Size: Total Number of Observations
1841 firms
Final Sample Size (or Number of Clusters) by Treatment Arms
729 treated with winning competition, 1112 control
Data Publication
Data Publication
Is public data available?
Yes
Program Files
Program Files
Yes
Reports, Papers & Other Materials
Relevant Paper(s)
Abstract
Citation
Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition, American Economic Review, 107(8): 2278-2307, 2017
Abstract
Almost all firms in developing countries have fewer than 10 workers, with the modal firm consisting of just the owner. Are there potential high-growth entrepreneurs with the ability to grow their firms beyond this size? And, if so, can public policy help alleviate the constraints that prevent these entrepreneurs from doing so? A large-scale national business plan competition in Nigeria is used to help provide evidence on these two questions. The competition was launched with much fanfare, and attracted almost 24,000 entrants. Random assignment was used to select some of the winners from a pool of semi-finalists, with US$36 million in randomly allocated grant funding providing each winner with an average of almost US$50,000. Surveys tracking applicants over three years show that winning the business plan competition leads to greater firm entry, higher survival of existing businesses, higher profits and sales, and higher employment, including increases of over 20 percentage points in the likelihood of a firm having 10 or more workers. These effects appear to occur largely through the grants enabling firms to purchase more capital and hire more labor.
Citation
David McKenzie (2015) "Identifying and Spurring High-Growth Entrepreneurship:Experimental Evidence from a Business Plan Competition", World Bank Policy Research Working Paper no. 7391
REPORTS & OTHER MATERIALS