Impact of start-up support through guided preparation

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.

Citation

(Wie) Yusuf, J.-E. (2014), "Impact of start-up support through guided preparation", Journal of Entrepreneurship and Public Policy, Vol. 3 No. 1, pp. 72-95. https://doi.org/10.1108/JEPP-01-2012-0004