Evidence-based Policy & Innovation Research Lab

Epic Lab.

Epic Lab. Evidence-based Policy & Innovation Research Lab

16 Nov Do business accelerators accelerate growth and failure?

Abstract:

Many entrepreneurship policy-makers work hard to implement and improve programs because they believe that those programs (and the resources used to support them) are having (or will have) the desired effect on socioeconomic development. Their belief is based on their knowledge, experience, and observations. However, belief is not the same as certainty. Typically, policy-makers believe that their programs are effective based on the outcomes they observe (such as the progress of the startups that participate in the program). Unfortunately, rarely do we observe the outcomes of a control group. Without a valid comparison, one cannot be certain that a policy is having the desired effect. Otherwise, there is a considerable risk of making a type I error (a “false positive”) or a type II error (a “false negative”) (see the image).

 

false-negative-positive-epic-lab

 

This white paper has implications for:

  • Policy-makers
  • Business accelerators
  • Entrepreneurs

This white paper was inspired from its original format for EPIC Lab from the paper “The Effects of Business Accelerators on Venture Performance: Evidence from Start-Up Chile”, González-Uribe & Leatherbee, 2016, which provides the first quasi-experimental evidence of the effect of accelerator programs on start-up performance, and on the importance of “entrepreneurial capital” in new ventures.

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