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Impact of start-up support through guided preparation

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  • Juita-Elena (Wie) Yusuf

Abstract

Purpose - – The purpose of this paper is to examine if and how entrepreneurial assistance programs, through guided preparation, affect start-up success. Design/methodology/approach - –This study uses Heckman's two-stage sample selection model to predict the effect of contact and interactions with entrepreneurial support programs on start-up outcomes while taking into account the entrepreneur's self-selection into obtaining support from these programs. Findings - – The results indicate that, after controlling for individual characteristics, activities undertaken during the start-up process, organizational characteristics and external factors, guided preparation contributes to a greater likelihood of achieving positive start-up outcome. This finding holds even after controlling for the entrepreneur's self-selection into contacting and using outside assistance. Research limitations/implications - – Results suggest that self-selection bias remains a concern when studying the impact of assistance programs on start-up outcomes. Future research should make sure to address self-selection in their analysis. Practical implications - – The study's results have implications for the design of start-up programs. It highlights the importance of delivery structures that are fluid, flexible, interactive, experiential, and tailored to the individual entrepreneur's needs. Originality/value - – This study focusses on assistance programs broadly defined (includes many different types of programs) and provides an empirical analysis that addresses self-selection.

Suggested Citation

  • Juita-Elena (Wie) Yusuf, 2014. "Impact of start-up support through guided preparation," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 3(1), pages 72-95, April.
    • Handle: RePEc:eme:jepppp:v:3:y:2014:i:1:p:72-95
    DOI: 10.1108/JEPP-01-2012-0004
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    Citations

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    Cited by:

    1. Ajay K Garg & Phillip NT Phaahla, 2018. "Factors Affecting the Business Performance of Small Businesses in Sekhukhune," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 54-67.
    2. Dmitry Khanin & Robert Rosenfield & Raj V. Mahto & Cherry Singhal, 2022. "Barriers to entrepreneurship: opportunity recognition vs. opportunity pursuit," Review of Managerial Science, Springer, vol. 16(4), pages 1147-1167, May.
    3. Lovgren Adam & Ross R. Brent & Leschewski Andrea & Peterson H. Christopher, 2020. "Do Entrepreneurial Assistance Programs Create Value for Agri-Food Entrepreneurs?," Entrepreneurship Research Journal, De Gruyter, vol. 10(1), pages 1-14, January.
    4. Georgios Fotopoulos & David J. Storey, 2019. "Public policies to enhance regional entrepreneurship: another programme failing to deliver?," Small Business Economics, Springer, vol. 53(1), pages 189-209, June.

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