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  • A by-product of big government : the attenuating role of public procurement for the effectiveness of grants-based entrepreneurship policy
    Grajžl, Peter ...
    We study the contextual role of public procurement for the effectiveness of grants-based entrepreneurship policy. Drawing on the resource-based view of the firm, we argue that partaking in ... procurement can erode grant effectiveness by relaxing a firm’s preexisting financial constraints and diverting managerial attention away from market-centered resource configurations. To test our hypothesis, we use detailed firm-level data from Slovenia and combine matching with difference-in-differences. When firms are not involved in procurement, all investigated types of grants meet the intended policy goals, apart from productivity growth. In contrast, when firms participate in procurement, small-business grants exhibit generally weaker effects, R&D grants fail to have any impact, and employment grants lastingly reduce firm productivity. Given that public procurement occupies a large footprint in many economies, our analysis highlights an unintended adverse by-product of big government and underscores the limits of state capitalism.
    Vir: Small business economics. - ISSN 0921-898X (Vol. 62, iss. 3, 2024, str. 895-916)
    Vrsta gradiva - članek, sestavni del
    Leto - 2024
    Jezik - angleški
    COBISS.SI-ID - 154338819
    DOI

vir: Small business economics. - ISSN 0921-898X (Vol. 62, iss. 3, 2024, str. 895-916)
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