The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico
Author(s)Bruhn, Miriam; Karlan, Dean S; Schoar, Antoinette
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A randomized control trial with 432 small and medium enterprises in Mexico shows positive impact of access to 1 year of management consulting services on total factor productivity and return on assets. Owners also had an increase in “entrepreneurial spirit” (an index that measures entrepreneurial confidence and goal setting). Using Mexican social security data, we find a persistent large increase (about 50 percent) in the number of employees and total wage bill even 5 years after the program. We document large heterogeneity in the specific managerial practices that improved as a result of the consulting, with the most prominent being marketing, financial accounting, and longterm business planning.
DepartmentMassachusetts Institute of Technology. Department of Economics; Sloan School of Management
Journal of Political Economy
University of Chicago Press
Bruhn, Miriam, Dean Karlan, and Antoinette Schoar. “The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico.” Journal of Political Economy 126, no. 2 (April 2018): 635–687.
Final published version