The effects of business accelerators on venture performance: evidence from start-up Chile

Produced by: 
London School of Economics
Available from: 
October 2017
Paper author(s): 
Juanita Gonzalez-Uribe
Michael Leatherbee
Microeconomics - Competition - Productivity

Do business accelerators affect new venture performance? We investigate this question in the context of Start-Up Chile, an ecosystem accelerator. We focus on two treatment conditions typically found in business accelerators: basic services of funding and coworking space, and additional entrepreneurship schooling. Using a regression discontinuity design, we show that schooling bundled with basic services can significantly increase new venture performance. In contrast, we find no evidence that basic services affect performance on their own. Our results are most relevant for ecosystem accelerators that attract young and early-stage businesses and suggest that entrepreneurial capital matters in new ventures.


Research section: 
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