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.

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Bibliographic Details
Main Authors: Brooks, Wyatt, Donovan, Kevin, Johnson, Terence R.
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
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