Is There a Cost-Effective Means of Training Microenterprises?
Despite billions of dollars spent by policy institutions and academics, very few programs designed to increase managerial skills among microenterprises are cost-effective. This short paper highlights a mentorship program designed to provide managerial skills to Kenyan microenterprises, and it provides a detailed cost-benefit analysis. For each dollar spent on a treated firm, average profit increases by 1.63 USD; the result stems from both a higher program impact and lower cost relative to existing training programs. Motivated by this increased cost-effectiveness, the study then compares the program to the large literature focusing on “supply-side” interventions designed to increase managerial capacity in small firms, and it highlights particular margins on which mentorship improves on classroom training and also where training should focus.
| Main Authors: | , , |
|---|---|
| Format: | Journal Article biblioteca |
| Published: |
Published by Oxford University Press on behalf of the World Bank
2020-02
|
| Subjects: | MICROENTERPRISE, PRIVATE SECTOR DEVELOPMENT, ENTREPRENEURSHIP, BUSINESS TRAINING, MENTORSHIP, |
| Online Access: | http://hdl.handle.net/10986/36149 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Despite billions of dollars spent by policy institutions and academics, very few programs designed to increase managerial skills among microenterprises are cost-effective. This short paper highlights a mentorship program designed to provide managerial skills to Kenyan microenterprises, and it provides a detailed cost-benefit analysis. For each dollar spent on a treated firm, average profit increases by 1.63 USD; the result stems from both a higher program impact and lower cost relative to existing training programs. Motivated by this increased cost-effectiveness, the study then compares the program to the large literature focusing on “supply-side” interventions designed to increase managerial capacity in small firms, and it highlights particular margins on which mentorship improves on classroom training and also where training should focus. |
|---|