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Management Practices, Self-Selection into Management Training Participation, and Training Effects in the Garment Industry in Ethiopia

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Author Info

  • Girum Abebe

    (Ethiopian Development Research Institute, Ethiopia)

  • Tetsushi Sonobe

    (National Graduate Institute for Policy Studies)

Abstract

Many observational studies of micro and small enterprises have found that enterprise performance and education levels of entrepreneurs are positively associated. Does it follow that entrepreneurs’ management capacities depend on their academic achievements? This paper examines what types of entrepreneurs participated in a managerial training program held in Ethiopia, who benefited more from the program, and who had better management knowledge before the program. We find that highly educated entrepreneurs were more willing to learn about management, more knowledgeable about management, and gaining more from the training program, but that such simple relationships are missing among entrepreneurs operating larger enterprises.

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Bibliographic Info

Paper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 11-23.

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Length: 36 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:ngi:dpaper:11-23

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Keywords: Africa; Ethiopia; education; management practices; management training;

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References

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  1. Erica Field & Seema Jayachandran & Rohini Pande, 2010. "Do Traditional Institutions Constrain Female Entrepreneurship? A Field Experiment on Business Training in India," American Economic Review, American Economic Association, American Economic Association, vol. 100(2), pages 125-29, May.
  2. Christopher Udry & Santosh Anagol, 2006. "The Return to Capital in Ghana," Working Papers, Economic Growth Center, Yale University 932, Economic Growth Center, Yale University.
  3. Yukichi Mano & Alhassan Iddrisu & Yutaka Yoshino & Tetsushi Sonobe, 2011. "How Can Micro and Small Enterprises in Sub-Saharan Africa Become More Productive? The Impacts of Experimental Basic Managerial Training," GRIPS Discussion Papers, National Graduate Institute for Policy Studies 11-06, National Graduate Institute for Policy Studies.
  4. Mengistae, Taye, 2001. "Indigenous ethnicity and entrepreneurial success in Africa : some evidence from Ethiopia," Policy Research Working Paper Series 2534, The World Bank.
  5. Mano, Yukichi & Yamano, Takashi & Suzuki, Aya & Matsumoto, Tomoya, 2011. "Local and Personal Networks in Employment and the Development of Labor Markets: Evidence from the Cut Flower Industry in Ethiopia," World Development, Elsevier, Elsevier, vol. 39(10), pages 1760-1770.
  6. Martin Valdivia & Dean Karlan, 2006. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," Working Papers, Economic Growth Center, Yale University 941, Economic Growth Center, Yale University.
  7. Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 24(1), pages 203-24, Winter.
  8. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011. "Management Practices Across Firms and Countries," CEP Discussion Papers dp1109, Centre for Economic Performance, LSE.
  9. Khondoker Abdul Mottaleb & Tetsushi Sonobe, 2011. "An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 60(1), pages 67 - 89.
  10. McPherson, Michael A., 1996. "Growth of micro and small enterprises in southern Africa," Journal of Development Economics, Elsevier, Elsevier, vol. 48(2), pages 253-277, March.
  11. de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, Elsevier, vol. 88(1), pages 19-31, January.
  12. Nick Bloom & Carol Propper & Stephan Seiler & John Van Reenen, 2010. "Management practices in the NHS," CentrePiece - The Magazine for Economic Performance, Centre for Economic Performance, LSE 305, Centre for Economic Performance, LSE.
  13. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2010. "What Capital Is Missing in Developing Countries?," American Economic Review, American Economic Association, American Economic Association, vol. 100(2), pages 629-33, May.
  14. T. Sonobe & D. Hu & K. Otsuka, 2002. "Process of Cluster Formation in China: A Case Study of a Garment Town," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(1), pages 118-139.
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