The Profits of Wisdom : The Impacts of a Business Support Program in Tanzania
Business training programs in low-income settings have shown limited, if any, impacts on firm revenues and profits, particularly for female entrepreneurs. This paper uses a randomized design to compare the impacts of two types of business training...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/257221513609451157/The-profits-of-wisdom-the-impacts-of-a-business-support-program-in-Tanzania http://hdl.handle.net/10986/29070 |
| Summary: | Business training programs in low-income
settings have shown limited, if any, impacts on firm
revenues and profits, particularly for female entrepreneurs.
This paper uses a randomized design to compare the impacts
of two types of business training programs targeting women
with established small businesses in urban Tanzania. The
basic version of the training relied on in-class sessions to
strengthen the managerial and technical skills of the
participants. In the enhanced version, training was
supplemented by individual visits from business coaches to
the sites of participants’ activities, as well as other
services tailored to their individual needs. The study finds
no impact of the basic training on business practices and
business outcomes. Participants in the enhanced training are
more likely to adopt new practices, but show no effects for
revenue or profits, on average. However, the average masks
large heterogeneous effects: entrepreneurs with low levels
of experience show reduced revenues; those with more
experience benefit from the program. This finding suggests
that business training programs may have greater impacts if
they are more carefully targeted. |
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