IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/3824.html
   My bibliography  Save this paper

The Impact of the Seed Capital Program of SERCOTEC in Chile

Author

Listed:
  • Bonilla, Claudio A.
  • Cancino, Christian A.

Abstract

This paper seeks to measure the impact on small businesses in Chile of the Seed Capital Program implemented by Chile's Technical Cooperation Services (Servicio de Cooperación Técnica SERCOTEC). The results are mixed. On the one hand, the impact of sales is positive but its statistical significance depends on the model used. With regard to the number of employees, however, the results are positive and statistically significant regardless of the model used. The results also show that participating in the program has no incidence on the probability of later obtaining financing. This study highlights the importance of differentiating between productive development programs and social programs. It also suggests improvements in public policy to develop entrepreneurship in small businesses in Chile. These suggestions may also be interesting for other countries in the region facing similar challenges in terms of developing private entrepreneurship as a vehicle to generate economic development.

Suggested Citation

  • Bonilla, Claudio A. & Cancino, Christian A., 2012. "The Impact of the Seed Capital Program of SERCOTEC in Chile," IDB Publications (Working Papers) 3824, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:3824
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/The-Impact-of-the-Seed-Capital-Program-of-SERCOTEC-in-Chile.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
    2. Roberto Álvarez E. & Gustavo Crespi T., 2000. "Exporter performance and promotion instruments: Chilean empirical evidence," Estudios de Economia, University of Chile, Department of Economics, vol. 27(2 Year 20), pages 225-241, December.
    3. Zoltan J. Acs & José Ernesto Amorós, 2008. "Introduction: The startup process," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 121-132, December.
    4. Carol Graham, 2005. "Insights on Development from the Economics of Happiness," World Bank Research Observer, World Bank Group, vol. 20(2), pages 201-231.
    5. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    6. de Bettignies, Jean-Etienne & Brander, James A., 2007. "Financing entrepreneurship: Bank finance versus venture capital," Journal of Business Venturing, Elsevier, vol. 22(6), pages 808-832, November.
    7. Cristián Larroulet Vignau & Couyoumdjian, Juan Pablo, 2009. "Entrepreneurship and Growth: A Latin American Paradox?," Past Working Papers 07, Universidad del Desarrollo, School of Business and Economics, revised 2009.
    8. Tan, Hong & Lopez Acevedo, Gladys, 2005. "Evaluating training programs for small and medium enterprises : lessons from Mexico," Policy Research Working Paper Series 3760, The World Bank.
    9. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Modeste Dayé & Romain Houssa & Paul Reding, 2015. "Policy instruments to improve MSMEs access to external financing in developing countries: A survey," BeFinD Working Papers 0106, University of Namur, Department of Economics.

    More about this item

    Keywords

    Small and medium enterprise; entrepreneurship; productive development; SMEs;

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:3824. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Felipe Herrera Library). General contact details of provider: http://edirc.repec.org/data/iadbbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.