The Profits of Wisdom: The Impacts of a Business Support Program in Tanzania

30 Pages Posted: 20 Dec 2017

See all articles by Elena Bardasi

Elena Bardasi

World Bank

Marine Gassier

World Bank Group

Markus Goldstein

World Bank

Alaka Holla

World Bank; Brown University; Innovations for Poverty Action

Date Written: December 18, 2017

Abstract

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.

Keywords: Technology Industry, Technology Innovation

Suggested Citation

Bardasi, Elena and Gassier, Marine and Goldstein, Markus P. and Holla, Alaka, The Profits of Wisdom: The Impacts of a Business Support Program in Tanzania (December 18, 2017). World Bank Policy Research Working Paper No. 8279, Available at SSRN: https://ssrn.com/abstract=3090765

Elena Bardasi (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Marine Gassier

World Bank Group ( email )

10 Marina Boulevard
Marina Bay Financial Center, Tower 2, #34-02
Singapore, DC 018983
Singapore

Markus P. Goldstein

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Alaka Holla

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

Brown University ( email )

Box 1860
Providence, RI 02912
United States

Innovations for Poverty Action ( email )

1731 Connecticut Ave, 4th floor
New Haven, CT 20009
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
21
Abstract Views
212
PlumX Metrics