Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program

Abstract: This paper uses administrative data from projects for which an application was made to CORFO’s (Chile's main development agency) Seed Capital Program (SCP) during the 2008-12 period. This paper analyzes the likely impact of the program-which is a subsidy provided to new, inn...

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Autor principal:	Navarro,Lucas
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2018
Materias:	Entrepreneurship programs startups seed investment Chile
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862018000200301
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spelling	oai:scielo:S0718-528620180002003012019-03-27Entrepreneurship policy and firm performance Chile's CORFO Seed Capital ProgramNavarro,Lucas Entrepreneurship programs startups seed investment Chile Abstract: This paper uses administrative data from projects for which an application was made to CORFO’s (Chile's main development agency) Seed Capital Program (SCP) during the 2008-12 period. This paper analyzes the likely impact of the program-which is a subsidy provided to new, innovative firms on Start, Growth, and Survival. The projects are supported by sponsors in the application process. Results of our analysis indicate that, controlling for observed characteristics, projects that received the subsidy had a 9.5 percentage point higher probability of starting to sell. Among created firms, subsidized (Treated) firms showed a 17 percentage point higher probability of significant Growth (in sales) and a similar effect on Survival. The analysis also examined a change in the program rules in 2011, whereby sponsors were paid based on performance instead of fixed fees, as it was before 2011. For projects affected by the policy change, results indicate no overall association of the program with the probability of Start and a positive correlation with Growth and Survival. These results could be a consequence of sponsors making better project selections for funding. The change in rules would suggest that the program contributes more to the Growth and Survival of new firms than to their Start, which would take place anyway. The data available for this study did not make it possible to fully control for potential selection biases, and thus the results may overestimate the impact of the program. This calls to suggest to improve data collection standards to help identify the true effect of this type of program.info:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.45 n.2 20182018-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862018000200301en10.4067/S0718-52862018000200301
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Entrepreneurship programs startups seed investment Chile
spellingShingle	Entrepreneurship programs startups seed investment Chile Navarro,Lucas Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program
description	Abstract: This paper uses administrative data from projects for which an application was made to CORFO’s (Chile's main development agency) Seed Capital Program (SCP) during the 2008-12 period. This paper analyzes the likely impact of the program-which is a subsidy provided to new, innovative firms on Start, Growth, and Survival. The projects are supported by sponsors in the application process. Results of our analysis indicate that, controlling for observed characteristics, projects that received the subsidy had a 9.5 percentage point higher probability of starting to sell. Among created firms, subsidized (Treated) firms showed a 17 percentage point higher probability of significant Growth (in sales) and a similar effect on Survival. The analysis also examined a change in the program rules in 2011, whereby sponsors were paid based on performance instead of fixed fees, as it was before 2011. For projects affected by the policy change, results indicate no overall association of the program with the probability of Start and a positive correlation with Growth and Survival. These results could be a consequence of sponsors making better project selections for funding. The change in rules would suggest that the program contributes more to the Growth and Survival of new firms than to their Start, which would take place anyway. The data available for this study did not make it possible to fully control for potential selection biases, and thus the results may overestimate the impact of the program. This calls to suggest to improve data collection standards to help identify the true effect of this type of program.
author	Navarro,Lucas
author_facet	Navarro,Lucas
author_sort	Navarro,Lucas
title	Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program
title_short	Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program
title_full	Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program
title_fullStr	Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program
title_full_unstemmed	Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program
title_sort	entrepreneurship policy and firm performance chile's corfo seed capital program
publisher	Universidad de Chile. Departamento de Economía
publishDate	2018
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862018000200301
work_keys_str_mv	AT navarrolucas entrepreneurshippolicyandfirmperformancechilescorfoseedcapitalprogram
_version_	1714205052718022656

Entrepreneurship policy and firm performance Chile's CORFO Seed Capital Program

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