Entrepreneurship

Compared to control participants, recipients were more likely to have an entrepreneurial mindset.*
On average, recipients were 3 percentage points more likely to report having an idea for a business than low control participants. This effect grew over the course of the program, reaching 5 percentage points by the third year — an 8% increase compared to the average control participant.
Though the interest did not translate into a significant increase in entrepreneurial activity for the average recipient, there was a notable increase in entrepreneurial activity for underrepresented groups.
By the third year, Black recipients were about 9 percentage points more likely to report starting or helping to start a business—an increase of 26% compared to the average among Black control participants. The 5 percentage point increase for female recipients equals a 15% rise in entrepreneurial activity relative to the control average.**

*Entrepreneurial mindset (or entrepreneurial orientation) measures willingness to take financial risks and includes both a survey measure and risk preferences from an incentivized multiple price list exercise, both of which were significant.

**Subgroup analyses are exploratory and we do not conduct a false discovery rate (FDR) adjustment for these estimates. Findings should be viewed as suggestive.