How Do Nascent Social Entrepreneurs Respond to Rewards? A Field Experiment on Motivations in a Grant Competition

نویسندگان

چکیده

We conducted a field experiment to identify the causal effect of extrinsic reward cues on sorting and performance nascent social entrepreneurs. The experiment, carried out with one United Kingdom’s largest support agencies for entrepreneurs, encouraged 431 entrepreneurs submit full application grant competition that provides cash in-kind mentoring through one-time mailing sent by agency. applicants were randomly assigned three groups: group received standard emphasized intrinsic incentives program, or opportunity do good (Social treatment), other two groups instead incentives—either financial (Cash treatment) (Support treatment). Our results show an emphasis has impact into applicant pool: led fewer candidates apply “crowded out” more prosocial while “crowding in” money-oriented ones. also increased effort, which these be successful in receiving grant. Yet selection resulting from incentive worse at end one-year period. highlight critical role motives enterprises suggest using promote development may backfire longer run. This paper was accepted Toby Stuart, entrepreneurship innovation.

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ژورنال

عنوان ژورنال: Management Science

سال: 2021

ISSN: ['0025-1909', '1526-5501']

DOI: https://doi.org/10.1287/mnsc.2020.3793