Tag
firm_growth
7 findings
DevelopmentMicroenterprise 'Big Push' Transformation and Poverty Trap TestingNeither individual nor combined "big push" treatments produced persistent profit increases; pooled stated income effects were 0.905 cedis for consulting only (p > 0.10), -45.43 cedis for capital only (p < 0.05), and -23.23 cedis for capital plus consulting (p > 0.10) relative to a control mean of 111.9 cedis.RCTFirms & operationsOwner Time-Constraint Bottleneck via Centralized Decision-MakingDeveloped-country plant managers can make capital investments averaging $50,000 without higher authorization, whereas developing-country owners sign off on minor $25 purchase orders; the number of owner brothers and sons directly predicts firm size due to selective family delegation.Observational StudyEconomics (general)Heterogeneous Entrepreneurial TalentA small minority of high-talent entrepreneurs like "Sarah" increased profits from 90 GH¢ to 333 GH¢ (a 270% increase vs. average control increase of 109 GH¢) by adopting marketing and employee management, whereas low-talent entrepreneurs like "Jess" only grew profits from 30 GH¢ to 80 GH¢. On average, the tailors mirrored "Jess", leading to zero aggregate profit growth across treatment groups.RCTFirms & operationsKinship-Bound Firm Expansion and Delegated GovernanceThe number of male relatives (brothers and sons) of a firm owner directly predicts overall firm size and plant count; owners with multiple male relatives establish multiple plants even when poorly managed, whereas the best-managed firm with no male relatives operates only a single plant.Observational StudyFirms & operationsKinship Delegation as Firm Expansion ConstraintThe count of owner brothers and sons directly predicted firm size and plant expansion; well-managed firms with zero brothers/sons operated only a single plant, while poorly managed firms with multiple male relatives established multiple production plants.Observational StudyFirms & operationsOwner Centralization and Decision-Making Delegation BarriersPlant managers in the US, Europe, and Japan can independently approve capital investments averaging $50,000, whereas owners in developing countries like India, China, and Brazil delegate almost no authority and require owner sign-off on purchases as small as $25.Observational StudyEconomics (general)Regulatory and Union Evasion via Plant SplittingTreatment firms opened 0.259 more plants over 3+ years compared to the industry average of 0.120 plants, while showing no statistically significant change in employee count per plant (-1.28, SE 6.19) or loom count per plant (2.38, SE 3.24).Observational Study