Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya

A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors. This study tests this possibility using a two-stage randomized experiment in Kenya. The experime...

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Main Authors: McKenzie, David, Puerto, Susana
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/197441488550003248/Growing-markets-through-business-training-for-female-entrepreneurs-a-market-level-randomized-experiment-in-Kenya
http://hdl.handle.net/10986/26243
id okr-10986-26243
recordtype oai_dc
spelling okr-10986-262432021-06-08T14:42:48Z Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya McKenzie, David Puerto, Susana business training women entrepreneurs spillovers microenterprises market development A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors. This study tests this possibility using a two-stage randomized experiment in Kenya. The experiment randomizes business training at the market level, and then within markets to selected businesses. Three years after training, the treated businesses are selling more, earn higher profits, and their owners have higher well-being. There is no evidence of negative spillovers on the competing businesses, and the markets as a whole appear to have grown in terms of number of customers and sales volumes. This market growth appears to come from enhanced customer service and new product introduction, generating more customers and more sales from existing customers. As a result, business growth in underdeveloped markets is possible without taking sales away from nontreated businesses. 2017-03-08T21:25:30Z 2017-03-08T21:25:30Z 2017-03 Working Paper http://documents.worldbank.org/curated/en/197441488550003248/Growing-markets-through-business-training-for-female-entrepreneurs-a-market-level-randomized-experiment-in-Kenya http://hdl.handle.net/10986/26243 English en_US Policy Research Working Paper;No. 7993 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Kenya
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 business training
women entrepreneurs
spillovers
microenterprises
market development
spellingShingle business training
women entrepreneurs
spillovers
microenterprises
market development
McKenzie, David
Puerto, Susana
Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya
geographic_facet Africa
Kenya
relation Policy Research Working Paper;No. 7993
description A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors. This study tests this possibility using a two-stage randomized experiment in Kenya. The experiment randomizes business training at the market level, and then within markets to selected businesses. Three years after training, the treated businesses are selling more, earn higher profits, and their owners have higher well-being. There is no evidence of negative spillovers on the competing businesses, and the markets as a whole appear to have grown in terms of number of customers and sales volumes. This market growth appears to come from enhanced customer service and new product introduction, generating more customers and more sales from existing customers. As a result, business growth in underdeveloped markets is possible without taking sales away from nontreated businesses.
format Working Paper
author McKenzie, David
Puerto, Susana
author_facet McKenzie, David
Puerto, Susana
author_sort McKenzie, David
title Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya
title_short Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya
title_full Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya
title_fullStr Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya
title_full_unstemmed Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya
title_sort growing markets through business training for female entrepreneurs : a market-level randomized experiment in kenya
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/197441488550003248/Growing-markets-through-business-training-for-female-entrepreneurs-a-market-level-randomized-experiment-in-Kenya
http://hdl.handle.net/10986/26243
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