IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7774.html
   My bibliography  Save this paper

Pathways to profits : identifying separate channels of small firm growth through business training

Author

Listed:
  • Anderson,Stephen J.
  • Chandy,Rajesh
  • Zia,Bilal Husnain

Abstract

This paper identifies separate and unique pathways to profits among small businesses in South Africa that are exposed to marketing or finance training in a randomized control study. The marketing group achieves greater profits by adopting a growth focus on higher sales, greater investments in stock and materials, and hiring more employees. The finance group achieves similar profit gains but through an efficiency focus on lower costs. Both groups show significantly higher adoption of business practices related to their respective training program. Consistent with a growth focus, marketing/sales skills are significantly more beneficial to firm owners who ex ante have less exposure to different business contexts. In contrast and in line with an efficiency focus, entrepreneurs who have been running more established businesses prior to training benefit significantly more from finance/accounting skills.

Suggested Citation

  • Anderson,Stephen J. & Chandy,Rajesh & Zia,Bilal Husnain, 2016. "Pathways to profits : identifying separate channels of small firm growth through business training," Policy Research Working Paper Series 7774, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7774
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/932291469740775507/pdf/WPS7774.pdf
    Download Restriction: no

    More about this item

    Keywords

    Technology Innovation; Technology Industry;

    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:7774. See general information about how to correct material in RePEc.

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

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.