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Training or technical assistance? A field experiment to learn what works to increase managerial capital for female microentrepeneurs

Author

Listed:
  • Valdivia, Martín
Abstract
This study evaluates the impacts of a business training program serving female microentrepreneurs in Lima that have previously benefited with the titling of their urban parcels. The intervention included personal development, business management and productive skills, aiming at empowering women so that they improve the control of their lives, their access to credit, their business practices, which in turn would increase the income and welfare of their families. 1983 eligible women were randomly allocated to treatment (2) and control groups. Women in the two treatment groups (1416) were offered business training in 36 three-hour sessions over approximately 12 weeks (regular training). In addition, half of them were offered an individualized support in the form of technical assistance (TA) over a period of three extra months. A baseline survey was applied before randomization and a follow-up survey about four months after the end of the treatment (about 12 months since the beginning of treatment). We find that women assigned to treatment indeed made some important adjustments in their business practices according to the training, although they differ depending on the type of treatment received. Those that received only regular training were more prone to close losing businesses. In turn, those that also received TA, were more prone to plan and execute innovations, as well as to increase their association with business peers and its use of informal credit sources. Furthermore, such innovations led to an increase in sales of at least 18%. These results have a clear policy implication: transmitting general good business practices may be cheaper and more scalable, but we need to include specific advice to help female microentrepreneurs grow. Both, business income and practices effects accrue among those with relatively larger businesses, suggesting the existence of a threshold above which this kind of business training can help. Lack of strong effects on the participation of women in key decisions and attitudes towards gender relations suggest the need to strengthen the personal development module, but such adjustment needs to take into account that time is a scarce resource for female microentrepreneurs as they need to share their time between their businesses and their traditional responsibilities with household chores.

Suggested Citation

  • Valdivia, Martín, 2011. "Training or technical assistance? A field experiment to learn what works to increase managerial capital for female microentrepeneurs," Research Department working papers 217, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:217
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    File URL: https://scioteca.caf.com/handle/123456789/217
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    Citations

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    Cited by:

    1. Verónica Escudero & Jochen Kluve & Elva López Mourelo & Clemente Pignatti, 2019. "Active Labour Market Programmes in Latin America and the Caribbean: Evidence from a Meta-Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2644-2661, December.
    2. Alexandria Valerio & Brent Parton & Alicia Robb, 2014. "Entrepreneurship Education and Training Programs around the World : Dimensions for Success," World Bank Publications - Books, The World Bank Group, number 18031.
    3. Eduardo Nakasone & Maximo Torero, 2014. "Soap Operas for Female Micro Entrepreneur Training," IDB Publications (Working Papers) 87916, Inter-American Development Bank.
    4. Gabriela Calderon & Jesse M. Cunha & Giacomo De Giorgi, 2020. "Business Literacy and Development: Evidence from a Randomized Controlled Trial in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 68(2), pages 507-540.
    5. Reeg, Caroline, 2015. "Micro and small enterprises as drivers for job creation and decent work," IDOS Discussion Papers 10/2015, German Institute of Development and Sustainability (IDOS).
    6. Caio Piza & Tulio Antonio Cravo & Linnet Taylor & Lauro Gonzalez & Isabel Musse & Isabela Furtado & Ana C. Sierra & Samer Abdelnour, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 12(1), pages 1-167.
    7. Grimm, Michael & Paffhausen, Anna Luisa, 2015. "Do interventions targeted at micro-entrepreneurs and small and medium-sized firms create jobs? A systematic review of the evidence for low and middle income countries," Labour Economics, Elsevier, vol. 32(C), pages 67-85.
    8. Nakasone, Eduardo & Torero, Maximo, 2014. "Soap Operas for for Female Micro Entrepreneur Training," MPRA Paper 61302, University Library of Munich, Germany.
    9. Kluve, Jochen., 2016. "A review of the effectiveness of active labour market programmes with a focus on Latin America and the Caribbean," ILO Working Papers 994901193402676, International Labour Organization.
    10. World Bank, 2012. "Women's Economic Empowerment in Latin America and the Caribbean : Policy Lessons from the World Bank Gender Action Plan," World Bank Publications - Reports 16509, The World Bank Group.

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