IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/10938.html
   My bibliography  Save this paper

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

Author

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

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 (Campos et al, 2017). This paper revisits these entrepreneurs after seven years, and finds long-lasting average impacts of personal initiative training of $91 higher profits per month, which is larger than the 2-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 dissipates, and capital build-up is much more limited.

Suggested Citation

  • Campos, Francisco Moraes Leitao & Frese,Michael & Iacovone, Leonardo & Johnson, Hillary C. & McKenzie, David & Mensmann,Mona, 2024. "Long-Term and Lasting Impacts of Personal Initiative Training on Entrepreneurial Success," Policy Research Working Paper Series 10938, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10938
    as

    Download full text from publisher

    File URL: https://documents.worldbank.org/curated/en/099432110012435711/pdf/IDU-738abbbc-f83d-4a1e-9bd7-8610cf96c99e.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Blattman, Christopher & Dercon, Stefan & Franklin, Simon, 2022. "Impacts of industrial and entrepreneurial jobs on youth: 5-year experimental evidence on factory job offers and cash grants in Ethiopia," Journal of Development Economics, Elsevier, vol. 156(C).
    2. Hardy, Morgan & Kim, Seongyoon & McCasland, Jamie & Menzel, Andreas & Witte, Marc, 2024. "Allocating labor across small firms: Experimental evidence on information constraints," Journal of Development Economics, Elsevier, vol. 171(C).
    3. Emma Riley, 2024. "Resisting Social Pressure in the Household Using Mobile Money: Experimental Evidence on Microenterprise Investment in Uganda," American Economic Review, American Economic Association, vol. 114(5), pages 1415-1447, May.
    4. Nicholas Bloom & Aprajit Mahajan & David McKenzie & John Roberts, 2020. "Do Management Interventions Last? Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 198-219, April.
    5. Bouguen, Adrien & Huang, Yue & Kremer, Michael & Miguel, Edward, 2019. "Using Randomized Controlled Trials to Estimate Long-Run Impacts in Development Economics," Department of Economics, Working Paper Series qt6f30j4nm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    6. Nathan Barker & Dean Karlan & Christopher Udry & Kelsey Wright, 2024. "The Fading Treatment Effects of a Multifaceted Asset-Transfer Program in Ethiopia," American Economic Review: Insights, American Economic Association, vol. 6(2), pages 277-294, June.
    7. Francisco Campos & Michael Frese & Markus Goldstein & Leonardo Iacovone & Hillary C. Johnson & David McKenzie & Mona Mensmann, 2018. "Is Personal Initiative Training a Substitute or Complement to the Existing Human Capital of Women? Results from a Randomized Trial in Togo," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 256-261, May.
    8. Bouguen, Adrien & Huang, Yue & Kremer, Michael & Miguel, Edward, 2019. "Using Randomized Controlled Trials to Estimate Long-Run Impacts in Development Economics," Department of Economics, Working Paper Series qt63w6406z, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    9. Jiafeng Chen & Jonathan Roth, 2024. "Logs with Zeros? Some Problems and Solutions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 891-936.
    10. Suresh de Mel & David McKenzie & Christopher Woodruff, 2009. "Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 1-32, July.
    11. Michael Frese, 2024. "Learning from African entrepreneurship—on the psychological function of entrepreneurial preparedness," Small Business Economics, Springer, vol. 63(4), pages 1365-1380, December.
    12. Davide Viviano & Kaspar Wuthrich & Paul Niehaus, 2021. "A model of multiple hypothesis testing," Papers 2104.13367, arXiv.org, revised Jan 2025.
    13. Adrien Bouguen & Yue Huang & Michael Kremer & Edward Miguel, 2019. "Using Randomized Controlled Trials to Estimate Long-Run Impacts in Development Economics," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 523-561, August.
    14. David McKenzie, 2021. "Small business training to improve management practices in developing countries: re-assessing the evidence for ‘training doesn’t work’," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 276-301.
    15. Michael W. Walker & Nachiket Shah & Edward Miguel & Dennis Egger & Felix Samy Soliman & Tilman Graff, 2024. "Slack and Economic Development," NBER Working Papers 33055, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rose, Julian & Neubauer, Florian & Ankel-Peters, Jörg, 2024. "Long-Term Effects of the Targeting the Ultra-Poor Program - A Reproducibility and Replicability Assessment of Banerjee et al. (2021)," I4R Discussion Paper Series 142, The Institute for Replication (I4R).
    2. Jiafeng Chen & David M. Ritzwoller, 2021. "Semiparametric Estimation of Long-Term Treatment Effects," Papers 2107.14405, arXiv.org, revised Aug 2023.
    3. Yuko Okamura & Tim Ohlenburg & Emil Tesliuc, 2024. "Scaling Up Social Assistance Where Data is Scarce - Opportunities and Limits of Novel Data and AI," World Bank Publications - Reports 41553, The World Bank Group.
    4. Ana Garcia-Hernandez & Nishith Prakash & Janina Isabel Steinert, 2025. "Empowerment Paradox? The Long-Run Impact of a Cycling Program for Girls in Zambia," CESifo Working Paper Series 11889, CESifo.
    5. repec:osf:osfxxx:rdjn9_v1 is not listed on IDEAS
    6. Garcia-Hernandez, Ana & Prakash, Nishith & Steinert, Janina Isabel, 2025. "Empowerment Paradox? The Long-Run Impact of a Cycling Program for Girls in Zambia," IZA Discussion Papers 17903, Institute of Labor Economics (IZA).
    7. Fiala, Nathan & Rose, Julian & Aryemo, Filder & Peters, Jörg, 2022. "The (very) long-run impacts of cash grants during a crisis," Ruhr Economic Papers 961, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Jose Cuesta & Erik Alda, 2021. "Evaluating a citizen security pilot in Honduras: The economic benefits of a much reduced murder rate," Development Policy Review, Overseas Development Institute, vol. 39(5), pages 848-864, September.
    9. Fiala, Nathan & Rose, Julian & Aryemo, Filder & Ankel-Peters, Jörg, 2025. "Timing matters: The (very) long-run impacts of cash grants during a crisis," Journal of Development Economics, Elsevier, vol. 175(C).
    10. Ana Garcia-Hernandez & Nishith Prakash & Janina Isabel Steinert, 2025. "The Empowerment Paradox? The Long-run Impact of a Cycling Program for Girls in Zambia," Munich Papers in Political Economy 41, Munich School of Politics and Public Policy and the School of Management at the Technical University of Munich.
    11. Corduneanu-Huci, Cristina & Dorsch, Michael T. & Maarek, Paul, 2021. "The politics of experimentation: Political competition and randomized controlled trials," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 1-21.
    12. Ohlenburg, Tim & Okamura, Yuko & Tesliuc, Emil, 2024. "Scaling up Social Assistance Where Data is Scarce : Opportunities and Limits of Novel Data and AI," Social Protection Discussion Papers and Notes 189993, The World Bank.
    13. Hamory, Joan & Miguel, Edward & Walker, Michael & Kremer, Michael & Baird, Sarah, 2021. "Twenty-year economic impacts of deworming," Department of Economics, Working Paper Series qt1mv5691c, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    14. Chen, Jiafeng & Ritzwoller, David M., 2023. "Semiparametric estimation of long-term treatment effects," Journal of Econometrics, Elsevier, vol. 237(2).
    15. Yuko Okamura & Tim Ohlenburg & Emil Tesliuc, 2024. "Scaling up Social Assistance Where Data is Scarce," World Bank Publications - Reports 41548, The World Bank Group.
    16. Papineni, Sreelakshmi & Gonzalez Martinez, Paula Lorena & Goldstein, Markus & Friedman, Jed, 2025. "Cash Is Queen : Local Economy Effects of Cash Transfers to Women in West Africa," Policy Research Working Paper Series 11112, The World Bank.
    17. Joan Hamory & Edward Miguel & Michael W. Walker & Michael Kremer & Sarah J. Baird, 2020. "Twenty Year Economic Impacts of Deworming," NBER Working Papers 27611, National Bureau of Economic Research, Inc.
    18. Eunbin Chung & Inbok Rhee, 2022. "Disasters and intergroup peace in sub-Saharan Africa," Journal of Peace Research, Peace Research Institute Oslo, vol. 59(1), pages 58-72, January.
    19. Gazeaud, Jules & Khan, Nausheen & Mvukiyehe, Eric & Sterck, Olivier, 2023. "With or without him? Experimental evidence on cash grants and gender-sensitive trainings in Tunisia," Journal of Development Economics, Elsevier, vol. 165(C).
    20. Lafortune, Jeanne & Pugatch, Todd & Tessada, José & Ubfal, Diego, 2024. "Can gamified online training make high school students more entrepreneurial? Experimental evidence from Rwanda," Economics of Education Review, Elsevier, vol. 101(C).
    21. Antonella Bancalari & Juan Pablo Rud, 2024. "Resource windfalls, public expenditures and local economies," IFS Working Papers W24/54, Institute for Fiscal Studies.

    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:10938. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.