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Long-Term and Lasting Impacts of Personal Initiative Training on Entrepreneurial Success

Author

Listed:
  • Francisco Campos
  • Michael Frese
  • Leonardo Iacovone
  • Hillary C. Johnson
  • David McKenzie
  • Mona Mensmann

Abstract

A randomized experiment in Togo found that personal initiative training for small businesses resulted in large and significant impacts for both men and women after two years. We revisit these entrepreneurs after seven years and find long-lasting average impacts of personal initiative training of $91-higher profits per month, which is larger than the two-year impacts. However, these long-term impacts are very different for men and women: The impact for men grows over time as they accumulate more capital and increase self-efficacy, whereas the impact for women is flat or declines, and capital buildup is much more limited.

Suggested Citation

  • Francisco Campos & Michael Frese & Leonardo Iacovone & Hillary C. Johnson & David McKenzie & Mona Mensmann, 2025. "Long-Term and Lasting Impacts of Personal Initiative Training on Entrepreneurial Success," American Economic Review: Insights, American Economic Association, vol. 7(4), pages 463-479, December.
    • Handle: RePEc:aea:aerins:v:7:y:2025:i:4:p:463-79
    DOI: 10.1257/aeri.20240581
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    Cited by:

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    2. Das, Smita & Delavallade, Clara & Fashogbon, Ayodele Emmanuel & Papineni, Sreelakshmi, 2026. "Turning Inward and/or Outward : Which Socioemotional Skills Pay for Agribusiness Entrepreneurs in Nigeria ?," Policy Research Working Paper Series 11325, The World Bank.

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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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