| Sumario: | We gave US$1000 cash prizes to winners of a business plan competition in Africa. Participants were ranked by committees of established entrepreneurs. Each committee selected one winner among 12 candidates. Six months after the competition, we compare winners with the two runners-up in each committee: winners are about 33 percentage points more likely to be self-employed and, on average, have two more permanent employees than close runners-up. Our findings imply that access to start-up capital constitutes a sizeable barrier to entry into entrepreneurship.
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