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