Teaching Entrepreneurship — FINCA Peru's Village-Bank Business Training Trial
Peru
A randomised trial added entrepreneurship training to 239 FINCA Peru village banks (4,591 mostly female clients) in Lima and Ayacucho. …
Sri Lanka · Colombo · See the Sri Lanka profile · See the Colombo profile
Evidence: Randomised controlled trial Top 34% 76/100 · Ask Evidence Copilot about this practice
A randomised trial delivered ILO's SIYB training to 1,256 women across 10 divisions of greater Colombo and Kandy. Training alone did not raise profits for existing subsistence enterprises; training plus a cash grant boosted profits for eight months before the gain disappeared.
The ILO's Start-and-Improve-Your-Business (SIYB) programme is the world's most widely used small-business course, delivered to more than 4.5 million people in over 95 countries; researchers tested it on Sri Lankan women in greater Colombo and greater Kandy.
Test whether SIYB business training, alone or combined with a cash grant, improves outcomes for two distinct groups of women: those already running subsistence enterprises, and those out of the labour force but interested in starting a business.
1,256 women across 10 Divisional Secretariat divisions were randomised in early 2009 to a control group, a training-only group, or a training-plus-cash-grant group, following a January 2009 baseline survey, training in April-May 2009, and four follow-up survey rounds through June 2011.
For existing subsistence-enterprise owners, training alone changed some practices but had no measurable effect on profits, sales or capital stock; training plus a cash grant produced a large, statistically significant profit increase for the first eight months, which had disappeared by the two-year follow-up. For women interested in starting a business, training led to earlier business entry and higher profitability among new entrants, though it did not raise the overall rate of business ownership by the final round.
Business training may do more to help people start businesses well than to fix underperforming businesses already in the subsistence phase.
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Peru
A randomised trial added entrepreneurship training to 239 FINCA Peru village banks (4,591 mostly female clients) in Lima and Ayacucho. …
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