Can a light-touch accelerator programme improve business performance? Evidence from Bangladesh

Policy brief Sustainable Growth, Firms and Firm capabilities

This policy brief evaluates the impact of a light-touch business accelerator programme in Dhaka, Bangladesh. The programme improved firms’ investment readiness and mentorship-driven business strategies, but did not lead to more funding or stronger peer networks. While short-term financial metrics remained unchanged, treated firms reported higher profits and more optimistic employment growth expectations.

This study evaluates the impact of “Startup Dhaka” – a light-touch business accelerator programme. 

  • Firms that received accelerator support had higher investment readiness, better awareness of investor expectations, and a greater likelihood of winning grants. However, there was no significant increase in the number of investment pitches or the amount of funding secured six months later.
  • The programme’s mentorship component strengthened business strategies and helped financial planning. However, peer networking opportunities had no impact.
  • The impact on short-run firm performance is mixed: while there was no difference between firms’ total revenues, investments, and debts over six months, treated firms reported higher profits and larger employment growth expectations in the coming year.