Working Paper: CEPR ID: DP10431
Authors: Greg Fischer; Dean S. Karlan
Abstract: We document the presence of multiple and varied constraints to small and medium firm growth. This presents both a practical problem for business training programs and a challenge to academic economists trying to identify mechanisms though which these programs may affect outcomes. External validity needs theory. This pushes researchers to narrowly defined and highly selected sample frames, which limits the potential for clear, generalizable policy prescriptions. Ultimately, larger samples, multi-arm evaluations, process documentation, and narrowly-focused, theory-supported empirical work are all needed, but the complexity of the problem limits what we learn from any single study.
Keywords: entrepreneurship; entrepreneurship training; external validity
JEL Codes: B4; L2; M1; M2; M3; O1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| constraints to firm growth (D25) | effectiveness of business training programs (M53) |
| interconnected obstacles (Y80) | effectiveness of business training programs (M53) |
| removing one constraint (D10) | improved outcomes (I14) |
| specific needs of firms (L20) | effectiveness of business training programs (M53) |