Business Training and Mentoring : Experimental Evidence from Women-Owned Microenterprises in Ethiopia
Recent research shows that microenterprises in developing countries are constrained by their managerial capacity, especially in the areas of marketing, record keeping, financial planning, and stock control. In a stratified randomized controlled tri...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/123731614020646755/Business-Training-and-Mentoring-Experimental-Evidence-from-Women-Owned-Microenterprises-in-Ethiopia http://hdl.handle.net/10986/35182 |
| Summary: | Recent research shows that
microenterprises in developing countries are constrained by
their managerial capacity, especially in the areas of
marketing, record keeping, financial planning, and stock
control. In a stratified randomized controlled trial,
experienced businesswomen in Ethiopia were given a formal
business training that addressed these constraints. A
second-stage mentoring component in which a random selection
of female mentees within the social and business network of
the trainees from the first-stage business training received
customized mentoring from these “trained mentors.” Pooled
results using three rounds of post-training surveys carried
out over three years show that business training causes
profit and sales to improve by 0.21 standard deviation,
while business practices improve by 0.13 standard deviation.
The overall impact of mentoring is muted—strong impacts are
observed on the adoption of business practices among
mentees, but there is no statistically significant impact on profits. |
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