Which skills for women s success?

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Which skills for women s success? Experimental evidence from entrepreneurship training programs in Togo Markus Goldstein PRELIMINARY PLEASE DO NOT CITE d Public Disclosure Authorized

2 Which skills for women s success? Motivation for the study Many people in developing countries work in very small and not very dynamic economic units family farms, microenterprises, and household businesses Given their contribution to total employment, these small economic units cannot be ignored. WDR-Jobs 83% of employed individuals in Togo are independent workers, small-scale employers, or work in family businesses. (RPH4, DGSCN)

3 Which skills for women s success? Motivation for the study There is an established link between both managerial and entrepreneurial skills and productivity De Mel et al., 2008; Bloom and Van Reenen, 2010 Evidence of the impact of business training on performance is mixed Karlan et al., 2012; Berge et al., 2012; de Mel et al., 2012; Field et al., 2010, Giné and Mansuri, 2011; Bruhn and Zia, 2011 The type of training approach matters, but limited evidence Drexler et al Heckman et. al. 2006: importance of non-cognitive skills for income (and other things), especially for women

4 Which skills for women s success? Research questions What is the effect of alternative business training programs on MSME performance and survival? What is the effect of alternative business training programs on the household welfare and social status of MSME entrepreneurs? What are the mechanisms through which business training programs influence MSME performance? Managerial changes: changing sectors, innovation, marketing, access to finance etc. Psychological changes: action orientation, overcoming obstacles etc. Are the effects different for women entrepreneurs?

5 Which skills for women s success? The intervention Training program of 1,000 entrepreneurs from the non-agricultural informal sector in Togo under the Private Sector Development Support Project 2 types of training offered: 500 entrepreneurs received Business Edge managerial training 500 entrepreneurs received personal initiative training developed by Professor Michael Frese 12 half-day classroom training sessions 4 months of personalized mentoring in the business (3 hours per month)

6 Which skills for women s success? Skills taught Business Edge managerial training o Accounting and financial management o Customer relations and marketing o Human resource management o Negotiation o Fiscal obligations and government regulations Personal initiative entrepreneurial training o Goal setting o Planning and implementation o Overcoming obstacles o Future and action orientation

7 Take up was high Treatment group assignment Type of training in which the person participated Managerial Entreprenurial Not selected Total Managerial % 84% 3% 1% 29% Entrepreneurial % 2% 84% 1% 29% None % 14% 12% 98% 41% Total ,500 % 100% 100% 100% 100%

8 # Training Sessions Attended And those who took up the program came to most of the sessions Attendance rate: Number of sessions attended All participants Entrepreneurial Managerial 1-3 0% 20% 40% 60% 80% 100% Percentage of trained individuals

9 Estimating impacts Methodology Intention to treat estimations: ANCOVA where baseline data available Post where baseline data unavailable Stratification dummies included as controls Huber White standard errors Gender effects estimated using interaction effects in the above

10 Which skills for women s success? Summary of preliminary results Analysis of: Capital and labor inputs Business practices Innovation Sector of activity Access to finance Access to networks Both programs generate effects on intermediate outcomes for women Training impacts are generally not statistically different for men and women Looking just at women, PI seems to work better

11 Higher capital and more workers Impact on capital and labor inputs Indicator Managerial Entrepreneurial Whole sample Women Men Whole sample Women Men B1 z-score 0.048*** ** 0.088***.10*** 0.08** Capital z-score 0.098*** 0.05* 0.15** 0.122*** 0.08** 0.16*** Assets 314, ** ** 369, *** *** Capital investments 42, , ** ** Inventory 98, , * Made a large investment 0.053*** 0.05*** *** 0.04* 0.10*** Number of workers * 0.39*** 0.16 Number of paid workers *** Number of workers receiving stipends * * 0.33*** 0.04 Number of unpaid workers Number of hours owner worked personally ** * Number of hours business open 1.974* *** ***

12 Better business practices Indicator Whole sample Managerial Women Men Whole sample Entrepreneurial Women Marketing and customer service 0.050*** 0.05*** 0.05*** 0.050*** 0.05*** 0.05*** Record keeping and financial management Operations and performance management Seeking information and new opportunities Men 0.182*** 0.18*** 0.18*** 0.116*** 0.10*** 0.13*** 0.035*** 0.03*** 0.04*** 0.035*** 0.02** 0.05*** 0.029*** 0.04*** 0.02* 0.033*** 0.03*** 0.03*** Human resource management 0.040*** 0.05*** *** 0.05*** 0.04**

13 More innovation Impact on innovation and sector of activity Indicator Whole sample Managerial Women Men Whole sample Entrepreneurial Women Men Impact on innovation Introduced new products or services 0.057*** 0.06** 0.12*** 0.096*** 0.17*** 0.18*** Number of new products or services Introduced new processes 0.031*** 0.05*** *** 0.06*** 0.01* Impact on sector of activity Firm changed sector of activity ** ** Firm changed secondary sector of activity

14 More loans Access to finance Indicator Amount could borrow in 2 weeks time Received at least 1 loan from any source Received at least 1 loan from bank or MFI Total amount of most recent loans received from each source Managerial Entrepreneurial Whole sample Women Men Whole sample Women Men 168, ** 77, ,930.15* 237, ** 61, ,232.52* * , , , , *** 371,623.13** 89, Has a bank account Has a business bank account 0.035** **

15 Increased social interactions Access to networks Indicator Whole sample Managerial Women Men Whole sample Entrepreneurial Women Men Discusses business ideas with others 0.023** 0.03** *** 0.03** 0.03** Discusses techniques or suppliers with others Meets with at least 1 group of entrepreneurs Frequency of meeting with other entrepreneurs Number of entrepreneurs in their networks 0.020* 0.04** * *** 0.09** 0.18*** 0.112*** 0.10*** 0.13*** ** ** Benefits from networks

16 Which type of training works best for women? Summary of impacts on women entrepreneurs Indicator Managerial Entrepreneurial p-value Impact on capital and labor B1 z-score *** 0.00 Capital z-score 0.05* 0.08** 0.34 Assets *** 0.06 Capital investments ** 0.06 Number of workers *** 0.00 Number of paid workers *** 0.00 Number of workers receiving stipends 0.19* 0.33*** 0.20 Impact on business practices All business practices 0.06*** 0.04*** 0.11 Marketing and customer service 0.05*** 0.05*** 0.72 Record keeping and financial management 0.18*** 0.10*** 0.00 Operations and performance management 0.03*** 0.02** 0.29 Seeking information and new opportunities 0.04*** 0.03*** 0.67 Human resource management 0.05*** 0.05*** 0.80

17 Which type of training works better for women? Summary of impacts on women entrepreneurs Indicator Managerial Entrepreneurial p-value Impact on innovation Introduced new products or services 0.06** 0.17*** 0.00 Introduced new processes 0.05*** 0.06*** 0.53 Firms change sector of activity Firm changed sector of activity 0.05** 0.05** 0.90 Access to finance Total amount of most recent loans received from each source 9, ,623.13** 0.03 Has a business bank account Access to networks Discusses business ideas with others 0.03** 0.03** 0.97 Discusses techniques or suppliers with others 0.04** Meets with at least 1 group of entrepreneurs 0.09** 0.10*** 0.67

18 Which skills for women s success? Conclusion Literature has shown mixed results for management training for women entrepreneurs Preliminary results confirm the hypothesis that a more innovative (non-cognitive skills based) type of training more effectively supports women s businesses Training based on personal initiative was more effective in increasing women s capital and labor inputs, product innovation, and access to loans than traditional management training Next step: understand how differences in intermediate outcomes affect impacts on business performance next survey is Sept 2016

19 Thank You

20 Which skills for women s success? Quality controls Daily feedback from participants during classroom training Daily feedback from independent observers in the classroom training sessions Random quality control visits by training experts, followed by meetings to discuss difficulties Video recording of all training sessions Phone calls of 10% of beneficiaries to measure satisfaction during the mentoring phase Mentoring reports completed by the trainers and reviewed by the head of the mission