Foreign, Commonwealth & Development Office

05/08/2025 | Press release | Distributed by Public on 05/08/2025 09:23

Market-based information to predict small firms’ marginal returns to capital and other business support services

Abstract

In this study, the authors leverage a randomized control trial evaluating a large-scale business support program implemented in Ghana. They explore entrepreneurs business networks and examine the ability of peer entrepreneurs to predict marginal returns not only to capital but also managerial consulting and a larger business network. They examine the potential for strategic misreporting when resource allocations are at stake and offer 2 simple tools from mechanism design to consider for improving prediction accuracy.

This paper is part of the Private Enterprise Development in Low-Income Countries (PEDL) programme.

Citation

Awadey A and others.'Market-based information to predict small firms' marginal returns to capital and other business support services' PEDL Research Note, 2025

Links

Market-based information to predict small firms' marginal returns to capital and other business support services

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