Apr 27, 2014

Success in Entrepreneurship: Doing the Math

This paper examines correlates of various measures of entrepreneurial success with shop and owner characteristics among small retailers in Western Kenya. The finding that stands out most strongly is a very high correlation of math scores with our measures of success. Math scores seem to be a robust predictor of inventories. They also strongly predict profits, and while one channel seems to be inventories math scores appear to important beyond this: the regression of profits on math scores controlling for inventories still shows a significant positive coefficient. Unsurprisingly, math scores are highly correlated with education. One hypothesis worth examining is that programs to improve math skills may be able increase the success of entrepreneurs. p. 18. 
That is from a paper by Michael KremerJonathan Robinson & Olga Rostapshova.

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