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Identifying and boosting “gazelles”: evidence from business accelerators

Gonzalez-Uribe, Juanita and Reyes, Santiago (2021) Identifying and boosting “gazelles”: evidence from business accelerators. Journal of Financial Economics, 139 (1). 260 - 287. ISSN 0304-405X

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Identification Number: 10.1016/j.jfineco.2020.07.012


Why is high-growth entrepreneurship scarce in developing countries? Does this scarcity reflect firm capabilities constraints? We explore these questions using as a laboratory an accelerator in Colombia that selects participants using scores from randomly assigned judges and offers them training, advice, and visibility but no cash. Exploiting exogenous differences in judges’ scoring generosity, we show that alleviating constraints to firm capabilities unlocks innovative entrepreneurs’ potential but does not transform subpar ideas into high-growth firms. The results demonstrate that some high-potential entrepreneurs in developing economies face firm capabilities constraints and accelerators can help identify these entrepreneurs and boost their growth.

Item Type: Article
Official URL:
Additional Information: © 2020 Elsevier B.V.
Divisions: Finance
Subjects: H Social Sciences > HG Finance
JEL classification: G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking; Venture Capital; Brokerage; Rating Agencies
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M13 - Entrepreneurship
Date Deposited: 21 Jan 2020 16:33
Last Modified: 24 Jul 2022 23:00

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