Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka

The authors conduct a randomized experiment among women in urban Sri Lanka to measure the impact of the most commonly used business training course in developing countries, the Start-and-Improve Your Business program. They work with two representat...

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Main Authors: de Mel, Suresh, McKenzie, David, Woodruff, Christopher
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2012/07/16531190/business-training-female-enterprise-start-up-growth-dynamics-experimental-evidence-sri-lanka
http://hdl.handle.net/10986/11998
id okr-10986-11998
recordtype oai_dc
spelling okr-10986-119982021-04-23T14:02:58Z Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka de Mel, Suresh McKenzie, David Woodruff, Christopher ABILITY LEVELS ACCOUNT ACCOUNTING ACCOUNTS ADVERTISING BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS SKILLS BUSINESS TRAINING CHILD CARE COMPLETION RATES ENTREPRENEURIAL SKILLS FINANCIAL PLANNING IMPACT EVALUATION INSTRUCTION INTERVENTIONS LEARNING LITERACY MARKETING NEW ENTRANTS NEW PRODUCTS OCCUPATIONAL CHOICE PARTICIPATION RATES PURCHASING REASONING REPORTING SALES SCHOOLING SELLING SUBSTITUTES TEACHING TRAINING COURSES TRAINING PROGRAMS Microdata Set The authors conduct a randomized experiment among women in urban Sri Lanka to measure the impact of the most commonly used business training course in developing countries, the Start-and-Improve Your Business program. They work with two representative groups of women: a random sample of women operating subsistence enterprises and a random sample of women who are out of the labor force but interested in starting a business. They track the impacts of two treatments -- training only and training plus a cash grant -- over two years with four follow-up surveys and find that the short and medium-term impacts differ. For women already in business, training alone leads to some changes in business practices but has no impact on business profits, sales or capital stock. In contrast, the combination of training and a grant leads to large and significant improvements in business profitability in the first eight months, but this impact dissipates in the second year. For women interested in starting enterprises, business training speeds up entry but leads to no increase in net business ownership by the final survey round. Both profitability and business practices of the new entrants are increased by training, suggesting training may be more effective for new owners than for existing businesses. The study also finds that the two treatments have selection effects, leading to entrants being less analytically skilled and poorer. 2012-12-21T19:27:20Z 2012-12-21T19:27:20Z 2012-07 http://documents.worldbank.org/curated/en/2012/07/16531190/business-training-female-enterprise-start-up-growth-dynamics-experimental-evidence-sri-lanka http://hdl.handle.net/10986/11998 English en_US Policy Research working paper ; no. 6145 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 South Asia Sri Lanka
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 ABILITY LEVELS
ACCOUNT
ACCOUNTING
ACCOUNTS
ADVERTISING
BUSINESS OWNERSHIP
BUSINESS PERFORMANCE
BUSINESS SKILLS
BUSINESS TRAINING
CHILD CARE
COMPLETION RATES
ENTREPRENEURIAL SKILLS
FINANCIAL PLANNING
IMPACT EVALUATION
INSTRUCTION
INTERVENTIONS
LEARNING
LITERACY
MARKETING
NEW ENTRANTS
NEW PRODUCTS
OCCUPATIONAL CHOICE
PARTICIPATION RATES
PURCHASING
REASONING
REPORTING
SALES
SCHOOLING
SELLING
SUBSTITUTES
TEACHING
TRAINING COURSES
TRAINING PROGRAMS
Microdata Set
spellingShingle ABILITY LEVELS
ACCOUNT
ACCOUNTING
ACCOUNTS
ADVERTISING
BUSINESS OWNERSHIP
BUSINESS PERFORMANCE
BUSINESS SKILLS
BUSINESS TRAINING
CHILD CARE
COMPLETION RATES
ENTREPRENEURIAL SKILLS
FINANCIAL PLANNING
IMPACT EVALUATION
INSTRUCTION
INTERVENTIONS
LEARNING
LITERACY
MARKETING
NEW ENTRANTS
NEW PRODUCTS
OCCUPATIONAL CHOICE
PARTICIPATION RATES
PURCHASING
REASONING
REPORTING
SALES
SCHOOLING
SELLING
SUBSTITUTES
TEACHING
TRAINING COURSES
TRAINING PROGRAMS
Microdata Set
de Mel, Suresh
McKenzie, David
Woodruff, Christopher
Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka
geographic_facet South Asia
Sri Lanka
relation Policy Research working paper ; no. 6145
description The authors conduct a randomized experiment among women in urban Sri Lanka to measure the impact of the most commonly used business training course in developing countries, the Start-and-Improve Your Business program. They work with two representative groups of women: a random sample of women operating subsistence enterprises and a random sample of women who are out of the labor force but interested in starting a business. They track the impacts of two treatments -- training only and training plus a cash grant -- over two years with four follow-up surveys and find that the short and medium-term impacts differ. For women already in business, training alone leads to some changes in business practices but has no impact on business profits, sales or capital stock. In contrast, the combination of training and a grant leads to large and significant improvements in business profitability in the first eight months, but this impact dissipates in the second year. For women interested in starting enterprises, business training speeds up entry but leads to no increase in net business ownership by the final survey round. Both profitability and business practices of the new entrants are increased by training, suggesting training may be more effective for new owners than for existing businesses. The study also finds that the two treatments have selection effects, leading to entrants being less analytically skilled and poorer.
format Publications & Research :: Policy Research Working Paper
author de Mel, Suresh
McKenzie, David
Woodruff, Christopher
author_facet de Mel, Suresh
McKenzie, David
Woodruff, Christopher
author_sort de Mel, Suresh
title Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka
title_short Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka
title_full Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka
title_fullStr Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka
title_full_unstemmed Business Training and Female Enterprise Start-up, Growth, and Dynamics : Experimental Evidence from Sri Lanka
title_sort business training and female enterprise start-up, growth, and dynamics : experimental evidence from sri lanka
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2012/07/16531190/business-training-female-enterprise-start-up-growth-dynamics-experimental-evidence-sri-lanka
http://hdl.handle.net/10986/11998
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