Managerial or entrepreneurial capital? Untangling constraints of innovative entrepreneurs

Entrepreneurial support programs have been implemented over the last decades to foster innovative entrepreneurs in developed and developing countries. Usually, these programs are carried by local business accelerators that provides cash and entrepreneurial capital in terms of training, mentorships, access to contacts, among others. Gonzalez-Uribe and Reyes (2020) show that providing that type of support (training, mentorships, etc) and no cash, have an impact on ventures’ success, asserting its importance on start-ups’ growth. However, one of the main research question that persisists is: what type of non-financial capital has the larger impact on start-up performance (i.e., sales, profits and jobs)? Is it management capital (a la Bloom and Van Reenen, 2010; Bruhn, Karlan, and Schoar, 2010) or it is entrepreneurial capital (a la Gonzalez-Uribe and Leatherbee, 2018)? This proposal aims to answer those questions implementing an RCT in Colombia, in collaboration with the Cali Chamber of Commerce.

 

You can read more about this trial here.