2011 example from enterprise support in poland rafał trzciński impact evaluation seminar warsaw,...

2011

Example from enterprise support in Poland

Rafał Trzciński

Impact Evaluation Seminar

Warsaw, 12.12.2011

Purpose of the evaluation

Estimation of the impact of grants on growth of SMEs

in Poland.

Measure covered by the study:Improvement of

competitiveness of SMEs through investments (Measure 2.3)

implemented within Sectoral Operational Programme

Improvement of the Competitiveness of Enterprises, years

2004-2006 (SOP-ICE).

Measure 2.3 was aimed at improvement of competitiveness

of Polish SMEs through modernisation of their product offer

and their technology base.

Average value of the subsidy amounted to PLN 532 thousand.

Impact evaluation problem

?

Factor x1

Factor x2

Problem: low

competitiveness of enterprises

SOP-ICE

EffectsSELECTION

BIAS

The approach

Counterfactual framework -> Q: what would have

happened in the absence of the intervention?

Quasi-experimental approach was chosen.

Control group was selected from unsuccessful

applicants.

Method used to reduce the selection bias:

Propensity Score Matching.

Data sets used in the evaluation

PARP data sets (databases of all applicants, with employment +9);

19 covariates were controlled, such as: age, revenues, size, legal form, assets, the use of other subsidies, etc.

Central Statistical Office data sets (Report on revenues, costs and financial results and the cost of fixed assets);

31 outcome variables were estimated, such as: net revenues from sales, employment, expenditures, profits, etc.

Unsuccessful applicantsControl group

ps= 0,6ps= 0,5

ps= 0,8ps= 0,1

ps= 0,2

ps= 0,3ps= 0,2

ps= 0,01

ps= 0,4

ps= 0,9

Beneficiaries

ps= 0,8ps= 0,3

ps= 0,9ps= 0,4

ps= 0,1

Propensity Score Matching (1-1; nearest neighbour)

Selection bias

Variable Treated(mean value)

Untreated

(mean value)

Control group(mean value)

The standardized difference in

percent (before matching)

The standardized difference in

percent (after matching)

Age of the company 10,31 10,41 10,13 -1,12 2,28Revenues (in total) 50409,24 74320,05 62275,93 -4,74 -2,35Revenue growth before the programe (comparing 2 periods)

0,72 0,59 0,73 26,72 -2,35

Assets (in toatal) 32676,70 75478,18 30319,08 -2,78 0,15Assets growth before the programe (comparing 2 periods)

0,70 0,60 0,70 20,12 -0,35

Value of deminimis 13802,67 9826,17 11593,88 5,22 2,90Total employment 70,34 44,77 71,15 47,44 -1,50Employment growth before the programme

0,66 0,57 0,66 18,88 -0,46

Difference in employment 7,29 4,20 7,73 17,62 -2,49Percentage of women 0,27 0,33 0,27 -25,82 0,98Number of contracts signed in Phare

1,15 0,45 1,06 53,95 6,87

Value of signed contracts in Phare 15502,53 5301,36 13934,88 46,73 7,18Application in SOP-ICE Measure 2.1 0,06 0,02 0,06 21,45 2,77Contract in SOP-ICE Measure 2.1 0,04 0,01 0,03 20,24 2,60Contract in SOP-HRD Measure 2.3 0,08 0,04 0,09 15,92 -2,28Credit 0,70 0,53 0,68 34,68 4,86Project area … … … … …Region … … … … …Legal form … … … … …PKD code … … … … …

Date of measurement

Employment and wages costs

Impact: +14 FTEs Impact: +PLN 511thousand

Net revenues from sales

Impact: +PLN 5 211 thousand

Operating expenses

Impact: +PLN 5 006 thousand

Losses – scale of the phenomenon

Impact: +3,3% Impact: zero

Losses

Impact: +PLN 360 thousandImpact: +PLN 3 335 thousand

Profits

Impact: +PLN 412 thousand Impact: +PLN 248 thousand

Asset Turnover

Impact: -0,10

Total expenditures on tangible fixed assets in use

Impact: +PLN 434 thousand Impact: +PLN 395 thousand

Liabilities

Impact: +PLN 458 thousand Impact: +PLN 372 thousand

Export

Impact: +PLN 1 479 thousand Impact: -PLN 753 thousand

Value of purchases in total imports

Impact: +PLN 1 307 thousand

Structure of imports

Impact: +PLN 1 158 thousand Impact: -PLN 109 thousand

Current ratio

Impact: -0,07

Main positive impacts:

Employment and wages.

Export and import (production activity).

Profits.

Expenditures on tangible fixed assets in use

(machinery and technical equipment).

Main negative impacts, or no impact:

Productivity of the enterprises.

Losses and their amount.

Liquidity of the enterprises.

Summary

More on this…

www.parp.gov.pl/index/more/24238

Thank you for your attention!

Polish Agency for Enterprise Development81/83 Pańska Street

00-834 Warsaw, Poland

Tel + 48 (22) 432 80 80Fax + 48 (22) 432 86 20

+ 48 (22) 432 84 04

Infoline: + 48 (22) 432 89 91/92/93www.parp.gov.pl