Publication: The Impact of Consulting Services on Small and Medium Enterprises : Evidence from a Randomized Trial in Mexico
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2013-06
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2013-09-26
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Abstract
Using a randomized evaluation with 432 Mexican small and medium enterprises, this paper shows that access to management consulting led to better firm performance: one-year results show positive effects on return-on-assets and total factor productivity. Owners also had large increases in "entrepreneurial spirit" (an entrepreneurs' managerial confidence index). Using Mexican social security data, the analysis finds a large increase in the number of employees and total wage bill several years after the program. The paper documents large heterogeneity in the specific managerial practices that improved as a result of the consulting, but there is no singular mechanism as a panacea for all firms.
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“Karlan, Dean; Schoar, Antoinette; Bruhn, Miriam. 2013. The Impact of Consulting Services on Small and Medium Enterprises : Evidence from a Randomized Trial in Mexico. Policy Research Working Paper;No. 6508. © World Bank. http://hdl.handle.net/10986/15867 License: CC BY 3.0 IGO.”
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