Evidence-based Policy & Innovation Research Lab

Epic Lab.

Epic Lab. Evidence-based Policy & Innovation Research Lab

18 Mar Business Accelerators and New-Venture Performance: Evidence from Start-Up Chile

Abstract:

Do business accelerators add value? If so, how? We investigate these questions by focusing on Start-Up Chile, an accelerator sponsored by the Chilean government. Using a regression discontinuity design, we show the mentoring services of accelerators can significantly increase new-venture performance by improving the managerial capital of participants. We speculate about the existence of two performance-enhancing mechanisms: the increase in the start-up’s social capital by enabling access to mentor networks, and the provision of an accountability structure in the form of board oversight. We find no support for the causal effect of basic services of cash and co-working space.

JEL codes: G24, L26, M13

Keywords: Accelerators, Entrepreneurship, Start-ups, Managerial Capital

August 2015

 

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