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Teaching business in Tanzania: Evaluating participation and performance

Author

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  • Kjetil Bjorvatn
  • Bertil Tungodden

Abstract

There is increased awareness that success among small scale entrepreneurs in developing countries requires more than microfinance, and that an important limiting factor for business growth is the level of human capital among the entrepreneurs. The present paper uses a randomized control trial to evaluate a business training program in Tanzania. Our results show that there is a positive average treatment effect on business knowledge. It also appears that training has a stronger effect on the entrepreneurs with less formal education. Paradoxically, these entrepreneurs are also less consistent in their participation in the training program. An important implication from our study is therefore that when providing business training, special care should be given to ensure high participation rates.

Suggested Citation

  • Kjetil Bjorvatn & Bertil Tungodden, 2009. "Teaching business in Tanzania: Evaluating participation and performance," CMI Working Papers 9, CMI (Chr. Michelsen Institute), Bergen, Norway.
  • Handle: RePEc:chm:wpaper:wp2009-9
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    Cited by:

    1. Alexandria Valerio & Brent Parton & Alicia Robb, 2014. "Entrepreneurship Education and Training Programs around the World : Dimensions for Success," World Bank Publications, The World Bank, number 18031, January.
    2. repec:oup:wbecrv:v:31:y:2017:i:3:p:611-630. is not listed on IDEAS
    3. Higuchi, Yuki & Nam, Vu Hoang & Sonobe, Tetsushi, 2015. "Sustained impacts of Kaizen training," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 189-206.
    4. Tetsushi Sonobe & Keijiro Otsuka, 2012. "The Role of Training in Fostering Cluster-Based MSE Development," GRIPS Discussion Papers 12-14, National Graduate Institute for Policy Studies.
    5. Cho, Yoonyoung & Honorati, Maddalena, 2014. "Entrepreneurship programs in developing countries: A meta regression analysis," Labour Economics, Elsevier, vol. 28(C), pages 110-130.
    6. David McKenzie & Christopher Woodruff, 2014. "What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?," World Bank Research Observer, World Bank Group, vol. 29(1), pages 48-82.
    7. Diwan, Faizan. & Makana, Grace. & McKenzie, David. & Paruzzolo, Silvia., 2015. "Women business training programme in Kenya : impact of incentives," ILO Working Papers 994874113402676, International Labour Organization.
    8. Sonobe, Tetsushi & Higuchi, Yuki & Otsuka, Keijiro, 2012. "Productivity growth and job creation in the development process of industrial clusters," Policy Research Working Paper Series 6280, The World Bank.
    9. Otsuka, Keijiro & Sonobe, Tetsushi, 2012. "The Role of Training in Fostering Cluster-Based Micro and Small Enterprises Development," WIDER Working Paper Series 099, World Institute for Development Economic Research (UNU-WIDER).
    10. repec:eee:jjieco:v:33:y:2014:i:c:p:25-42 is not listed on IDEAS
    11. Mano, Yukichi & Akoten, John & Yoshino, Yutaka & Sonobe, Tetsushi, 2014. "Teaching KAIZEN to small business owners: An experiment in a metalworking cluster in Nairobi," Journal of the Japanese and International Economies, Elsevier, vol. 33(C), pages 25-42.
    12. repec:unu:wpaper:wp2012-99 is not listed on IDEAS
    13. Seshan, Ganesh & Yang, Dean, 2014. "Motivating migrants: A field experiment on financial decision-making in transnational households," Journal of Development Economics, Elsevier, vol. 108(C), pages 119-127.
    14. Tetsushi Sonobe & Keijiro Otsuka, 2015. "Cluster-Based MSE Development: The Role of Kaizen Training," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 609-626.
    15. Espen Villanger, 2012. "Caste discrimination and barriers to microenterprise growth in Nepal," CMI Working Papers 9, CMI (Chr. Michelsen Institute), Bergen, Norway.
    16. Tim Kaiser & Lukas Menkhoff, 2017. "Does Financial Education Impact Financial Literacy and Financial Behavior, and If So, When?," World Bank Economic Review, World Bank Group, vol. 31(3), pages 611-630.

    More about this item

    Keywords

    Microcredit Small enterprises Business training Evaluation Tanzania;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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