Growing Markets through Business Training for Female Entrepreneurs: A Market-Level Randomized Experiment in Kenya

David John McKenzie · Susana Puerto

79 citations0/0 files storedAmerican Economic Journal Applied Economics

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Entrepreneurship Studies and Influences Firm Innovation and Growth Experimental Behavioral Economics Studies

Abstract

A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors. We test this possibility using a two-stage randomized experiment in Kenya that randomizes business training at the market level and then within markets to selected businesses. Three years after training, the treated businesses are selling more, earn higher profits, and their owners have higher well-being. Point estimates of the spillovers on the competing businesses are small and not statistically significant, and the markets as a whole have grown in terms of sales volume. (JEL J16, L25, L26, L53, O14)

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References

1983The structure of psychological distress and well-being in general populations.2010Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions 2014Keeping It Simple: Financial Literacy and Rules of Thumb 2013What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?2008What is Middle Class about the Middle Classes around the World?2018Measuring and Bounding Experimenter Demand 2017Teaching personal initiative beats traditional training in boosting small business in West Africa 2016Management as a Technology?

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