Why is innovative entrepreneurship scarce in developing countries

Can accelerators separate real talent from ideas with little potential? An experiment using randomly assigned judges holds the answer.

We used the participation of over 135 firms in Valle E as a natural laboratory: since judges are assigned randomly and some are systematically more generous than others, that exogenous difference allowed us to isolate the true effect of the accelerators.

The finding: easing capacity constraints unlocks the potential of innovative entrepreneurs, but it cannot turn a low-potential idea into a high-growth company. Mentorship does not manufacture talent; it unleashes it where it already exists.

There are high-potential entrepreneurs held back by limitations in their capabilities—not by a lack of good ideas—and accelerators can help identify them and foster their growth.

Are they making the right choice? Discover all the evidence in the full report.