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Assessing the effectiveness of guided preparation for new venture creation and performance: Theory and practice

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  • Rotger, Gabriel Pons
  • Gørtz, Mette
  • Storey, David J.

Abstract

Governments in virtually all developed countries subsidise “guided preparation” for entrepreneurial activity. Despite being so widespread, the evidence that this assistance enhances venture performance remains in dispute, primarily because of a lack of consensus over statistical approaches. This paper provides a new — to entrepreneurship scholars-approach, applying it to a programme guiding nascent and new entrepreneurs in Denmark. It concludes that the programme contributes to the survival and size of new ventures, but its impact on growth is less clear. It also finds that impact is sensitive to changing the eligibility criteria of the programme — such as requiring a modest payment from participants or selecting participants according to observable entrepreneurial characteristics.

Suggested Citation

  • Rotger, Gabriel Pons & Gørtz, Mette & Storey, David J., 2012. "Assessing the effectiveness of guided preparation for new venture creation and performance: Theory and practice," Journal of Business Venturing, Elsevier, vol. 27(4), pages 506-521.
  • Handle: RePEc:eee:jbvent:v:27:y:2012:i:4:p:506-521
    DOI: 10.1016/j.jbusvent.2012.01.003
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    References listed on IDEAS

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    Cited by:

    1. Marco Caliendo & Steffen Künn, 2014. "Regional Effect Heterogeneity of Start-up Subsidies for the Unemployed," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1108-1134, June.
    2. Capelleras, Joan-Lluis & Mole, Kevin F., 2012. "How ‘buzz’ reduces uncertainty for new firm founders," MPRA Paper 38170, University Library of Munich, Germany.
    3. Caliendo, Marco & Künn, Steffen & Weißenberger, Martin, 2016. "Personality traits and the evaluation of start-up subsidies," European Economic Review, Elsevier, vol. 86(C), pages 87-108.
    4. Alex Coad & Julian S. Frankish & Richard G. Roberts & David J. Storey, 2016. "Predicting new venture survival and growth: Does the fog lift?," Small Business Economics, Springer, vol. 47(1), pages 217-241, June.
    5. van Weele, Marijn & van Rijnsoever, Frank J. & Nauta, Frans, 2017. "You can't always get what you want: How entrepreneur's perceived resource needs affect the incubator's assertiveness," Technovation, Elsevier, vol. 59(C), pages 18-33.
    6. Lovgren, Adam & Ross, R. Brent & Peterson, H. Christopher, 2012. "Overcoming Selection Bias in Measuring the Effect of Entrepreneurial Assistance Programs," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124815, Agricultural and Applied Economics Association.
    7. Coad, Alex & Frankish, Julian & Roberts, Richard G. & Storey, David J., 2013. "Growth paths and survival chances: An application of Gambler's Ruin theory," Journal of Business Venturing, Elsevier, vol. 28(5), pages 615-632.

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