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The Impact of the Seed Capital Program of SERCOTEC in Chile

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  • 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., 2011. "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
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    References listed on IDEAS

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    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.
    2. Martin Pereyra & Diego Aboal & Flavia Rovira, 2021. "How effective are training and mentorship programs for entrepreneurs at promoting entrepreneurial activity? An impact evaluation," SN Business & Economics, Springer, vol. 1(7), pages 1-21, July.

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    More about this item

    Keywords

    Small and medium enterprise; entrepreneurship; productive development; SMEs;
    All these keywords.

    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

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