Selection or More Capital ? Experimental Evidence on High-Growth Entrepreneurs in Kenya
Overview & Synopsis
Business plan competitions aim to identify and spur high-growth entrepreneurs. Two experiments were embedded into a Kenyan competition to test how intensity of selection and of capital determine entrepreneurial outcomes. Applicants received a US$9,000 grant after a streamlined process or went through multiple selection stages and were randomly assigned US$9,000 or US$36,000. All grants initially generated jobs, but the impacts only persisted over three years under multi-stage selection. The larger grants did not yield greater long-term impacts than the multi-stage US$9,000 grant, suggesting diminishing returns to capital and limited lumpy investment opportunities. Selection, rather than grant size, determines long-run firm growth.
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Document Information
| Document Title | Selection or More Capital ? Experimental Evidence on High-Growth Entrepreneurs in Kenya |
|---|---|
| Author / Organization | Campos, Francisco, Safir, Abla, Koffka, Celine, McKenzie, David, Zia, Bilal |
| Subject & Discipline | FY17 - Public Administration - Social Protection,FY17 - Social Protection,FY17 - Workforce Development and Vocational Education |
| Categories | Economics & Development |
| Publication Year | 2026 |
| License / Rights | Creative Commons Attribution 4.0 (CC BY 4.0) |
| Resource Verification | Listed PDF (Verification Pending) |
| Original Host Website |
World Bank Documents & Reports
(documents.worldbank.org)
|
| File Format | application/pdf (Portable Document Format) |
| Language | EN |
| Catalog ID | DOC-45648 |
| Original Source Link | Visit Source Page on documents.worldbank.org » |