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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.
Journal of Enterpreneurship and Public Policy – Emerald Publishing
Published: Apr 14, 2014
Keywords: Resources; Business development; Learning; Planning; Start‐ups; New ventures
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