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The impact of consulting services on small and medium enterprises: evidence from a randomized trial in Mexico (English)

Using a randomized evaluation with 432 Mexican small and medium enterprises, this paper shows that access to management consulting led to better firm performance: one-year results show positive effects on return-on-assets and total factor productivity. Owners also had large increases in "entrepreneurial spirit" (an entrepreneurs' managerial confidence index). Using Mexican social security data, the analysis finds a large increase in the number of employees and total wage bill several years after the program. The paper documents large heterogeneity in the specific managerial practices that improved as a result of the consulting, but there is no singular mechanism as a panacea for all firms.

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Citation

Bruhn,Miriam Karlan,Dean S. Schoar,Antoinette

The impact of consulting services on small and medium enterprises: evidence from a randomized trial in Mexico (English). Impact Evaluation series ; no. IE 95,Policy Research working paper ; no. WPS 6508 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/516471468278741470/The-impact-of-consulting-services-on-small-and-medium-enterprises-evidence-from-a-randomized-trial-in-Mexico