Demand pull versus resource push training approaches to entrepreneurship: A field experiment

• Main Authors: SANTAMARIA, Simone, ABOLFATHI, Niloofar, MAHMOOD, Ishtiag Pasha
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: demand-side perspective; early-stage entrepreneurs; entrepreneurship training; field experiment; resource based view; Entrepreneurial and Small Business Operations; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7337; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8336/viewcontent/Demand_pull_versus_resource_push_training_approaches_to_entrepreneurship_pvoa_cc_nc.pdf
• Institution: Singapore Management University

We compare the efficacy of two broad approaches to entrepreneurship training: a training prioritizing demand-side activities versus a training prioritizing resource-side activities. We do so by running a field experiment inside a 6-month entrepreneurship program involving 236 early-stage entrepreneurs. Inspired by our training, the first group invested more time interacting with potential customers and developing a deep understanding of customer needs and problems. The other group, in contrast, spent more time identifying and exploiting their core resources such as their network. Our results reveal that the training prioritizing demand-side activities is substantially more effective. At the end of the program, the group exposed to the demand-side training acquired more than twice the number of customers and generated revenues 65% higher than the other group.