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Networking entrepreneurs

Author

Listed:
  • Vega-Redondo, Fernando
  • Pin, Paolo
  • Ubfal, Diego
  • Benedetti, Priscilla
  • Domínguez, Magdalena
  • Rubera, Gaia
  • Hovy, Dirk
  • Fornaciari, Tommaso

Abstract

Can peer interaction foster entrepreneurship in large-scale environments? This paper addresses the question empirically and theoretically. Empirically, we tested the effects of peer interaction on the number and quality of business plans submitted in a Pan-African RCT including 5,000 entrepreneurs. Thetreatment provided the possibility of interaction in different interaction settings (face-to-face or virtual, peers being of the same or diverse nationalities). We find that, while estimated network effects are almost always strong, the treatment effect is not so and displays a non-monotone trade-off between diversity and interaction "bandwidth." We develop a model that sheds light on this behavior by differentiating between constructive and disruptive interaction. It is also qualitatively supported by our experimental evidence

Suggested Citation

  • Vega-Redondo, Fernando & Pin, Paolo & Ubfal, Diego & Benedetti, Priscilla & Domínguez, Magdalena & Rubera, Gaia & Hovy, Dirk & Fornaciari, Tommaso, 2024. "Networking entrepreneurs," UC3M Working papers. Economics 43954, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:43954
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    References listed on IDEAS

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