Naslov
Impact Evaluation of Business Development Grants on SME Performance
(Impact Evaluation of Business Development Grants on SME PerformanceSME performance)

Autori
Srhoj, Stjepan ; Lapinski, Michael ; Walde, Janette

Izvornik
Small business economics (0921-898X) 57 (2021); 1285-1301

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
business development grants ; policy evaluation ; two way fixed effects regression ; matching ; heterogeneous treatment effects ; dose-response-function

Sažetak
An assessment of the economic impact that can be achieved through grants makes it possible to refine such policy instruments in order to make public funding more effective in relation to the objectives pursued. In this paper, we investigate the effects of a business development grant scheme. More specifically we question whether firms’ performance measures increased after receiving such grants. Methodically, we match grant receiving firms with grant non-receivers and estimate the average treatment effect on the treated using a two way fixed effects regression. Our results point towards a positive effect of the grant scheme, which is particularly evident for firms of smaller size. Our estimated dose- response functions show that the share of grant amount in firm profits needs to be high enough for the grants to be effective. According to back of- the envelope analysis, benefits outweigh the direct scheme costs.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA