Market-based information to predict small firms’ marginal returns to capital and other business support services
This study leverages a randomized control trial evaluating a large-scale business support program implemented in Ghana.
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