applicants, (e) randomization of selected applicants into treatment arms through a public lottery, and (f) grant disbursements. In the following paragraphs, we will describe each phase in detail.

**Phase 1 - Advertisement of the program and communication of eligibility criteria.** In January–March 2018, MEBF reached out to micro, small, and medium-size agricultural and nonagricultural enterprises (MSMEs) in the study area by means of public information sessions, the local radio channels, and meetings with local authorities and potential applicants. Prospective applicants were informed about the program details and the application requirements.

**Phase 2 - Collection of applications.** Following a call for expressions of interest to receive a matching grant or a cash grant, MEBF deployed teams in the targeted municipalities to help applicants fill out the application form which had a simplified business plan template. In particular, the applicant had to provide details on the proposed project and, if applicable, details on the existing firm including its sector of activity, the main products, and the production process. The business plan also had to include the reasons for the investment decision, the objectives and expected results, an assessment of potential competitors, and the plan for physical and soft investments (cost and quantities). The applicant also had to provide an estimate of the total cost of the project, the timeline for implementing the project, and the jobs expected to be created. Finally, the applicant had to provide information about the performance of his or her business, if applicable, including annual turnover. The support of MEBF staff was deemed necessary as the program intervened in a rural area where many applicants were illiterate and hence needed help to fill out the application and business plan template. MEBF staff also supported applicants to comprehensively define their needs in terms of technical assistance and trainings for their businesses as well as investments in equipment or inventory that they could buy in case they were offered a cash grant. In total, 2,279 business plans were submitted to MEBF.

**Phase 3 - Selection of applicants.** By May 2018, MEBF staff and staff of Bagrépole short-listed 1,612 of the 2,279 applicants. Each applicant was scored based on a predefined set of eligibility criteria. These included, for example, the cogency of the justifications on the needs expressed by the applicant, the relevance of the applicant’s personal experience in relation to the proposed business, and the potential of the proposed project to create and consolidate employment. Then, MEBF conducted individual interviews with all preselected applicants to double-check their level of commitment to their proposed business plan.

**Phase 4 - Training of all selected applicants.** MEBF invited all the preselected 1,612 applicants for a training based on a simplified module of the ‘Start and Improve Your Business Training’ (SIYB) developed by the International Labour Organization (ILO). As in McKenzie (2017), the intention of the training was to provide all applicants with the basics of business management, including accounting and financial and business planning, to help grant recipients finalize and implement their business plan. Of the preselected applicants, 1,575 attended the training. Using another round of face-to-face interviews, by August 2018, MEBF then selected, again based on performance and quality of the proposed project, a final list of 1,300 applicants, of these 1,300 the top 1,200 ranked firms were then selected for the lottery and the other 100 were put on a reserve list in case some applicants would drop out of the experiment before the implementation starts. A baseline survey with all 1,300 firms was conducted in November/December 2018. This survey was implemented with Innovations for Poverty Action (IPA). The sample size was chosen based on power considerations and budget constraints. Power is discussed in more detail in Section 4.

**Phase 5 - Randomization of selected applicants into treatment arms through a public lottery.** In April and May 2019, with technical support from the World Bank, MEBF ran public lotteries in each participating

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