Henry Overman, London School of Economics. "Selling more, but only for a while: Evidence from the largest business support RCT in the UK"

Department seminar. Henry Overman is Professor of Economic Geography at LSE. He will present the paper: "Selling more, but only for a while: Evidence from the largest business support RCT in the UK".

Photo of Henry Overman

Henry Overman

Abstract: 

In this paper we evaluate the impact of the Growth Vouchers Programme (GVP), which offered diagnostic support to all applicants and subsidised business advice to a group of randomly selected firms from a pool of 20,283 small and medium size enterprises between 2014 and 2015 in the UK. Using administrative and survey data, we show that the programme increased turnover by 8.2% but only in the short-term, through improvements in capabilities and practices. We document large heterogeneity by type of diagnostic, theme of advice and firm age. Receiving advice on sales & marketing led to a large persistent effect on turnover, while advice on raising finance led to a large negative effect. We also demonstrate that for firm-level evaluations, propensity score matching introduces a sizeable bias, that grows over time.

Published Oct. 25, 2021 11:32 AM - Last modified Oct. 25, 2021 11:32 AM