Business Training Plus for Female Entrepreneurship? Short and Medium-Term Experimental Evidence from Peru

Abstract

With millions of women around the developing world thrown into self-employment but with low productivity, the question about how to increase the profitability and growth potential of their businesses is increasingly relevant for poverty reduction and gender equity. This study evaluates the impacts of a business development services program serving female microentrepreneurs in Lima using an experimental design, that included two treatment groups: One received only general training (GT), albeit more time-intense than previous studies, and delivered by experts, while the other received in addition technical assistance (TA). Results show the existence of room for efficiency gains and growth, as all treated showed increased sales revenues and self-reported adoption of recommended business practices, although timing differed. Those that received full treatment (GT TA) were the only ones reporting increased sales 4-7 months after the end of the treatment, but GT-only treated were able to catch up about a year later. Low take up of the training may suggest some space to improve recruitment and delivery of good general business practices.