Impact of start-up support through guided preparation

Abstract

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.

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