Assessing the effectiveness of guided preparation for new venture creation and performance: Theory and practice

Governments in virtually all developed countries subsidise "guided preparation" for entrepreneurial activity. Despite being so widespread, the evidence that this assistance enhances venture performance remains in dispute, primarily because of a lack of consensus over statistical approaches. This paper provides a new to entrepreneurship scholars-approach, applying it to a programme guiding nascent and new entrepreneurs in Denmark. It concludes that the programme contributes to the survival and size of new ventures, but its impact on growth is less clear. It also finds that impact is sensitive to changing the eligibility criteria of the programme such as requiring a modest payment from participants or selecting participants according to observable entrepreneurial characteristics. (C) 2012 Elsevier Inc. All rights reserved.