What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?

Business training programs are a popular policy option to try to improve the performance of enterprises around the world. The last few years have seen rapid growth in the number of evaluations of these programs in developing countries. This paper u...

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Main Authors: McKenzie, David, Woodruff, Christopher
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2012/09/16748548/learning-business-training-entrepreneurship-evaluations-around-developing-world
http://hdl.handle.net/10986/12054
id okr-10986-12054
recordtype oai_dc
spelling okr-10986-120542021-04-23T14:02:59Z What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World? McKenzie, David Woodruff, Christopher ACCESS TO CAPITAL ACCOUNT ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING RECORDS ACCOUNTS ADMINISTRATIVE DATA ATTENDANCE RATES BANKS BORROWING BUSINESS DEVELOPMENT BUSINESS EXPENSES BUSINESS FAILURES BUSINESS GROWTH BUSINESS INVESTMENT BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS PLAN BUSINESS PLANNING BUSINESS PLANS BUSINESS PROFITABILITY BUSINESS SCHOOL BUSINESS SERVICES BUSINESS SKILLS BUSINESS TRAINING CALCULATION CALCULATIONS CHECKS CLASSROOM CLASSROOM TRAINING COMMUNITY ORGANIZATIONS CONSULTING FIRMS CONTRIBUTION COURSE CONTENT CUSTOMER SERVICE DEBT DEBT MANAGEMENT DIRECT COSTS EMPLOYMENT OPPORTUNITIES ENTREPRENEURSHIP TRAINING EXCHANGE RATES FEMALE-OWNED BUSINESSES FINANCES FINANCIAL INFORMATION FINANCIAL LITERACY FINANCIAL LITERACY TRAINING FINANCIAL PLANNING GENERAL POPULATION HOUSEHOLD EXPENSES IMPACT EVALUATION INCOME INSTRUCTORS INSURANCE INTEREST RATES INTERVENTIONS INVESTING LABOR FORCE LARGE FIRMS LEARNING LENDER LENDERS LITERACY COURSES LOAN LOCAL SCHOOLS MARKETING MARKETING EFFORTS MEDIUM ENTERPRISES MUSLIM WOMEN NATIONAL UNIVERSITY NEW PRODUCTS OCCUPATIONS PERSONALITY PROBABILITIES PROBABILITY PRODUCTIVITY PROFESSORS PURCHASING QUALITY CONTROL QUESTIONNAIRE RAPID GROWTH RECORD KEEPING REMOTE VILLAGES REPAYMENT REPORTING RESOURCE MANAGEMENT RETENTION RATES RISK AVERSION SALES SAVINGS SCHOOLING SCHOOLS SELF EMPLOYMENT SELF-EMPLOYMENT SKILL TRAINING SMALL BUSINESS SMALL BUSINESS OWNERS SMALL BUSINESSES STARTUPS TAKE-UP RATE TAKE-UP RATES TEACHING TRAINEES TRAINING COURSE TRAINING COURSES TRAINING PROGRAM TRAINING PROGRAMS TRAINING SERVICES VALUABLE VILLAGE LEVEL VOCATIONAL TRAINING WAGE WORK HOURS WORTH YOUTH Business training programs are a popular policy option to try to improve the performance of enterprises around the world. The last few years have seen rapid growth in the number of evaluations of these programs in developing countries. This paper undertakes a critical review of these studies with the goal of synthesizing the emerging lessons and understanding the limitations of the existing research and the areas in which more work is needed. It finds that there is substantial heterogeneity in the length, content, and types of firms participating in the training programs evaluated. Many evaluations suffer from low statistical power, measure impacts only within a year of training, and experience problems with survey attrition and measurement of firm profits and revenues. Over these short time horizons, there are relatively modest impacts of training on survivorship of existing firms, but stronger evidence that training programs help prospective owners launch new businesses more quickly. Most studies find that existing firm owners implement some of the practices taught in training, but the magnitudes of these improvements in practices are often relatively modest. Few studies find significant impacts on profits or sales, although a couple of the studies with more statistical power have done so. Some studies have also found benefits to microfinance organizations of offering training. To date there is little evidence to help guide policymakers as to whether any impacts found come from trained firms competing away sales from other businesses versus through productivity improvements, and little evidence to guide the development of the provision of training at market prices. The paper concludes by summarizing some directions and key questions for future studies. 2013-01-02T21:54:02Z 2013-01-02T21:54:02Z 2012-09 http://documents.worldbank.org/curated/en/2012/09/16748548/learning-business-training-entrepreneurship-evaluations-around-developing-world http://hdl.handle.net/10986/12054 English en_US Policy Research Working Paper; No. 6202 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO CAPITAL
ACCOUNT
ACCOUNTING
ACCOUNTING PRACTICES
ACCOUNTING RECORDS
ACCOUNTS
ADMINISTRATIVE DATA
ATTENDANCE RATES
BANKS
BORROWING
BUSINESS DEVELOPMENT
BUSINESS EXPENSES
BUSINESS FAILURES
BUSINESS GROWTH
BUSINESS INVESTMENT
BUSINESS OWNERSHIP
BUSINESS PERFORMANCE
BUSINESS PLAN
BUSINESS PLANNING
BUSINESS PLANS
BUSINESS PROFITABILITY
BUSINESS SCHOOL
BUSINESS SERVICES
BUSINESS SKILLS
BUSINESS TRAINING
CALCULATION
CALCULATIONS
CHECKS
CLASSROOM
CLASSROOM TRAINING
COMMUNITY ORGANIZATIONS
CONSULTING FIRMS
CONTRIBUTION
COURSE CONTENT
CUSTOMER SERVICE
DEBT
DEBT MANAGEMENT
DIRECT COSTS
EMPLOYMENT OPPORTUNITIES
ENTREPRENEURSHIP TRAINING
EXCHANGE RATES
FEMALE-OWNED BUSINESSES
FINANCES
FINANCIAL INFORMATION
FINANCIAL LITERACY
FINANCIAL LITERACY TRAINING
FINANCIAL PLANNING
GENERAL POPULATION
HOUSEHOLD EXPENSES
IMPACT EVALUATION
INCOME
INSTRUCTORS
INSURANCE
INTEREST RATES
INTERVENTIONS
INVESTING
LABOR FORCE
LARGE FIRMS
LEARNING
LENDER
LENDERS
LITERACY COURSES
LOAN
LOCAL SCHOOLS
MARKETING
MARKETING EFFORTS
MEDIUM ENTERPRISES
MUSLIM WOMEN
NATIONAL UNIVERSITY
NEW PRODUCTS
OCCUPATIONS
PERSONALITY
PROBABILITIES
PROBABILITY
PRODUCTIVITY
PROFESSORS
PURCHASING
QUALITY CONTROL
QUESTIONNAIRE
RAPID GROWTH
RECORD KEEPING
REMOTE VILLAGES
REPAYMENT
REPORTING
RESOURCE MANAGEMENT
RETENTION RATES
RISK AVERSION
SALES
SAVINGS
SCHOOLING
SCHOOLS
SELF EMPLOYMENT
SELF-EMPLOYMENT
SKILL TRAINING
SMALL BUSINESS
SMALL BUSINESS OWNERS
SMALL BUSINESSES
STARTUPS
TAKE-UP RATE
TAKE-UP RATES
TEACHING
TRAINEES
TRAINING COURSE
TRAINING COURSES
TRAINING PROGRAM
TRAINING PROGRAMS
TRAINING SERVICES
VALUABLE
VILLAGE LEVEL
VOCATIONAL TRAINING
WAGE
WORK HOURS
WORTH
YOUTH
spellingShingle ACCESS TO CAPITAL
ACCOUNT
ACCOUNTING
ACCOUNTING PRACTICES
ACCOUNTING RECORDS
ACCOUNTS
ADMINISTRATIVE DATA
ATTENDANCE RATES
BANKS
BORROWING
BUSINESS DEVELOPMENT
BUSINESS EXPENSES
BUSINESS FAILURES
BUSINESS GROWTH
BUSINESS INVESTMENT
BUSINESS OWNERSHIP
BUSINESS PERFORMANCE
BUSINESS PLAN
BUSINESS PLANNING
BUSINESS PLANS
BUSINESS PROFITABILITY
BUSINESS SCHOOL
BUSINESS SERVICES
BUSINESS SKILLS
BUSINESS TRAINING
CALCULATION
CALCULATIONS
CHECKS
CLASSROOM
CLASSROOM TRAINING
COMMUNITY ORGANIZATIONS
CONSULTING FIRMS
CONTRIBUTION
COURSE CONTENT
CUSTOMER SERVICE
DEBT
DEBT MANAGEMENT
DIRECT COSTS
EMPLOYMENT OPPORTUNITIES
ENTREPRENEURSHIP TRAINING
EXCHANGE RATES
FEMALE-OWNED BUSINESSES
FINANCES
FINANCIAL INFORMATION
FINANCIAL LITERACY
FINANCIAL LITERACY TRAINING
FINANCIAL PLANNING
GENERAL POPULATION
HOUSEHOLD EXPENSES
IMPACT EVALUATION
INCOME
INSTRUCTORS
INSURANCE
INTEREST RATES
INTERVENTIONS
INVESTING
LABOR FORCE
LARGE FIRMS
LEARNING
LENDER
LENDERS
LITERACY COURSES
LOAN
LOCAL SCHOOLS
MARKETING
MARKETING EFFORTS
MEDIUM ENTERPRISES
MUSLIM WOMEN
NATIONAL UNIVERSITY
NEW PRODUCTS
OCCUPATIONS
PERSONALITY
PROBABILITIES
PROBABILITY
PRODUCTIVITY
PROFESSORS
PURCHASING
QUALITY CONTROL
QUESTIONNAIRE
RAPID GROWTH
RECORD KEEPING
REMOTE VILLAGES
REPAYMENT
REPORTING
RESOURCE MANAGEMENT
RETENTION RATES
RISK AVERSION
SALES
SAVINGS
SCHOOLING
SCHOOLS
SELF EMPLOYMENT
SELF-EMPLOYMENT
SKILL TRAINING
SMALL BUSINESS
SMALL BUSINESS OWNERS
SMALL BUSINESSES
STARTUPS
TAKE-UP RATE
TAKE-UP RATES
TEACHING
TRAINEES
TRAINING COURSE
TRAINING COURSES
TRAINING PROGRAM
TRAINING PROGRAMS
TRAINING SERVICES
VALUABLE
VILLAGE LEVEL
VOCATIONAL TRAINING
WAGE
WORK HOURS
WORTH
YOUTH
McKenzie, David
Woodruff, Christopher
What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?
relation Policy Research Working Paper; No. 6202
description Business training programs are a popular policy option to try to improve the performance of enterprises around the world. The last few years have seen rapid growth in the number of evaluations of these programs in developing countries. This paper undertakes a critical review of these studies with the goal of synthesizing the emerging lessons and understanding the limitations of the existing research and the areas in which more work is needed. It finds that there is substantial heterogeneity in the length, content, and types of firms participating in the training programs evaluated. Many evaluations suffer from low statistical power, measure impacts only within a year of training, and experience problems with survey attrition and measurement of firm profits and revenues. Over these short time horizons, there are relatively modest impacts of training on survivorship of existing firms, but stronger evidence that training programs help prospective owners launch new businesses more quickly. Most studies find that existing firm owners implement some of the practices taught in training, but the magnitudes of these improvements in practices are often relatively modest. Few studies find significant impacts on profits or sales, although a couple of the studies with more statistical power have done so. Some studies have also found benefits to microfinance organizations of offering training. To date there is little evidence to help guide policymakers as to whether any impacts found come from trained firms competing away sales from other businesses versus through productivity improvements, and little evidence to guide the development of the provision of training at market prices. The paper concludes by summarizing some directions and key questions for future studies.
format Publications & Research :: Policy Research Working Paper
author McKenzie, David
Woodruff, Christopher
author_facet McKenzie, David
Woodruff, Christopher
author_sort McKenzie, David
title What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?
title_short What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?
title_full What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?
title_fullStr What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?
title_full_unstemmed What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?
title_sort what are we learning from business training and entrepreneurship evaluations around the developing world?
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2012/09/16748548/learning-business-training-entrepreneurship-evaluations-around-developing-world
http://hdl.handle.net/10986/12054
_version_ 1764418831112994816