The Effects of Business Accelerators on Venture Performance: Evidence from Start-Up Chile
The Review of Financial Studies, September 2017, doi/10.1093/rfs/hhx103/4104437
Posted: 28 Aug 2015 Last revised: 2 Jan 2018
Date Written: February 15, 2017
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.
Keywords: Accelerators, Entrepreneurship, Start-up, Entrepreneurial Capital, Managerial Capital
JEL Classification: G24, L26, M13
Suggested Citation: Suggested Citation