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Study Overview

Title:
Evaluation of a Nationwide Business Plan competition
Study is 3ie funded:
No
Study ID:
RIDIE-STUDY-ID-52559be5a72eb
Initial Registration Date:
10/09/2013
Last Update Date:
07/24/2018
Study Status:
Completed
Change History for Status
Changed On Previous Value
07/24/2018 Ongoing
Location(s):
Nigeria
Abstract:
The program being evaluated is a business plan competition for young entrepreneurs in a large African country. It has the stated objective of encouraging innovation and job creation through the creation of new businesses and expansion of existing businesses. The program provides a four-day training course on preparation of a business plan to applicants who make it through a first stage, and then grants to winners selected in this second phase. The goal of this evaluation is to measure the impact of winning this program on business performance, including job growth, profitability, and capital accumulation. A mixture of experimental and non-experimental evaluation methods will be used.
Categories:
Private Sector Development
Additional Keywords:
Secondary ID Number(s):
AEA RCT Registry AEARCTR-0000078; Pre-analysis plan registered with J-PAL Hypothesis registry on 14 November, 2012.

Principal Investigator(s)

Name of First PI:
David McKenzie
Affiliation:
World Bank
Name of Second PI:
Affiliation:

Study Sponsor

Name:
DFID
Study Sponsor Location:
United Kingdom

Research Partner

Name of Partner Institution:
DFID's Project Development Facility (PDF)
Type of Organization:
NGO-international
Location:
Nigeria
Intervention

Intervention Overview

Intervention:
The program provides a four-day training course on preparation of a business plan to applicants who make it through a first stage, and then grants to winners selected in this second phase.
Private Intervention Details:
Details are in pre-analysis plan
Theory of Change:
Multiple Treatment Arms Evaluated?
Yes

Implementing Agency

Name of Organization:
Ministry of Finance, Government of Nigeria
Type of Organization:
Public Sector, e.g. Government Agency or Ministry

Program Funder

Name of Organization:
Ministry of Finance, Government of Nigeria
Type of Organization:
Public Sector, e.g. Government Agency or Ministry

Intervention Timing

Intervention or Program Started at time of Registration?
Yes
Start Date:
12/01/2011
End Date:
12/01/2013
Evaluation Method

Evaluation Method Overview

Primary (or First) Evaluation Method:
Randomized control trial
Other (not Listed) Method:
Additional Evaluation Method (If Any):
Regression discontinuity
Other (not Listed) Method:

Method Details

Details of Evaluation Approach:
A Randomized Experiment is used to measure the impact of winning the grant; a Regression Discontinuity is used to measure the impact of the initial training. More Details are provided in pre-analysis plan
Private Details of Evaluation Approach:
Details are provided in pre-analysis plan
Outcomes (Endpoints):
Employment, Profitability, Sales
Unit of Analysis:
Individual applicant
Hypotheses:
Details in pre-analysis plan
Unit of Intervention or Assignment:
Individual applicants
Number of Clusters in Sample:
Number of Individuals in Sample:
3139 applicants
Size of Treatment, Control, or Comparison Subsamples:
729 treated, 1112 control (RCT); Also various RD samples as in pre-analysis plan

Supplementary Files

Analysis Plan:
McKenzie_preanalysisplan_Sept23.pdf
Other Documents:
Data

Outcomes Data

Description:
Follow-up surveys of Firms
Data Already Collected?
Yes
Data Previously Used?
Yes
Data Access:
Restricted -- Access requires a formal approval process
Data Obtained by the Study Researchers?
Data Approval Process:
Data from ongoing evaluation surveys, will be made public once study is completed. Note that an additional survey round has yet to be completed.
Approval Status:
Yes-obtained approval and have received the data

Treatment Assignment Data

Participation or Assignment Information:
Yes
Description:
Data Obtained by the Study Researchers?
Data Previously Used?
Data Access:
Data Obtained by the Study Researchers?
Data Approval Process:
Approval Status:

Data Analysis

Data Analysis Status:
Yes

Study Materials

Upload Study Materials:

Registration Category

Registration Category:
Non-Prospective, Category 4: Data for measuring impacts have been obtained/collected by the research team and analysis for this evaluation has started
Completion

Completion Overview

Intervention Completion Date:
01/31/2014
Data Collection Completion Date:
11/30/2016
Unit of Analysis:
Firm
Clusters in Final Sample:
Individual level randomization
Total Observations in Final Sample:
1841 firms, surveyed in four follow-up rounds.
Size of Treatment, Control, or Comparison Subsamples:
729 treatment, 1112 control

Findings

Preliminary Report:
Yes
Preliminary Report URL:
https://drive.google.com/open?id=0B9C9RwWKZrUNdzhGSm81UDFCMG8
Summary of Findings:
Almost all firms in developing countries have fewer than 10 workers, with a modal size of one. Are there potential high-growth entrepreneurs, and can public policy help identify them and facilitate their growth? A large-scale national business plan competition in Nigeria provides evidence on these questions. Random assignment of US$34 million in grants provided each winner with approximately US$50,000. Surveys tracking applicants over five years show that winning leads to greater firm entry, more survival, higher profits and sales, and higher employment, including increases of over 20 percentage points in the likelihood of a firm having 10 or more workers.
Paper:
Yes
Paper Summary:
McKenzie, David (2017) Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition, American Economic Review, 107(8): 2278-2307 McKenzie, David (forthcoming) "Can business owners form accurate counterfactuals? Eliciting treatment and control beliefs about their outcomes in the alternative treatment status", Journal of Business & Economic Statistics
Paper Citation:
see above

Data Availability

Data Availability (Primary Data):
Yes--Available now
Date of Data Availability:
Data URL or Contact:
http://microdata.worldbank.org/index.php/catalog/2329
Access procedure:
Public use dataset through the World Bank's open data library

Other Materials

Survey:
Yes
Survey Instrument Links or Contact:
http://microdata.worldbank.org/index.php/catalog/2329
Program Files:
Yes
Program Files Links or Contact:
http://microdata.worldbank.org/index.php/catalog/2329
External Link:
http://voxdev.org/topic/firms-trade/generating-smes-through-business-plan-competition-nigeria
External Link Description:
Description of Changes:
See AER paper for discussion

Study Stopped

Date:
Reason: