1 / 17

Impact evaluation of an SME program

Evaluation of an SME program in Hungary providing grants for modernization and equipment purchase, with analysis on investment and growth outcomes. Results suggest positive investment effects in the short run. Limitations include the inability to capture nationwide impacts. Various methodologies such as simple regression and Propensity Score Matching (PSM) were used. Impact evaluation sources include OECD Framework, NONIE, and other evaluation associations.

rmcmahon
Download Presentation

Impact evaluation of an SME program

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Impact evaluation of an SME program Attila Béres National Development Agency Hungary

  2. Program characteristics • Grants to SMEs for modernization • Purchase of equipments • Maximum grant 25 M Ft (~100 000 €) • Private contribution min. 50% • ~9000 applicants • ~3500 beneficiaries • Assistance approved 42 Bn Ft (~170 Mn €)

  3. Questions • Did assisted SMEs invest more? • Differences in the growth of tangible assets between the treated and the control groups • Did assisted SMEs grow faster? • Differences in the growth of net sales between the treated and the control groups

  4. Groups of interest • Did not apply for grants • Control group: 62 963 SMEs • Applied but did not win • „Treated” group: 1 134 SMEs • Applied for grants and won • Treated group: 981 SMEs In total approx. 8% of Hungarian SMEs

  5. Group characteristics

  6. Methodologies • Simple regression • have to control for all important variables • Difference-in-differences (DiD) • unobservable factors are time invariant • Propensity Score Matching (PSM) • controls for time-varying unobservables

  7. Intuition behind PSM

  8. Results of matching - 2004

  9. Results of matching - 2005

  10. Results of matching - 2006

  11. Summary • Assisted SMEs were bigger and grew faster even before the program • Significant effects on investments even in the short run • No significant effects on growth (at least not in the short run) • Significant effects on investment even for those SMEs, which applied for but did not win

  12. Number of SMEs with matching

  13. Numeric results (without PSM)

  14. Numeric results (with PSM)

  15. Limitations • This method is applicable only for measuring the effects on the assisted SMEs • Can not catch multiplicator or nation-wide impacts • To catch those impacts one need macroeconomic models

  16. Impact evaluation sources • OECD Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes • NONIE • http://www.worldbank.org/ieg/nonie/index.html • American Evaluation Association • http://www.eval.org/ • Canadian Evaluation Society • http://www.evaluationcanada.ca/ • Institute for Fiscal Studies • http://www.ifs.org.uk/ • …

  17. Thank you for your attention! E-mail: attila.beres@nfu.gov.hu Web: www.nfu.gov.hu

More Related