A World Bank/ACDI-VOCA RCT trained 197 experienced Ethiopian businesswomen who then mentored 1,128 less-experienced peers. Over three years, mentor training raised profits 80%, and mentees' practice adoption rose 0.27 SD, though mentee profits did not significantly improve.
80 %
Mentor winsorized profits (2014-2018)
62 %
Mentor winsorized revenue (2014-2018)
0.21 SD
Mentor profits-and-sales index (2014-2018)
0.13 SD
Mentor business-practices index (2014-2018)
0.27 SD
Mentee business-practice adoption index (2015-2018)
0.27 SD
Mentee marketing practices index (2015-2018)
0.18 SD
Mentee record-keeping practices index (2015-2018)
0.065 SD
Mentee profits and revenue (not statistically significant) (2015-2018)
Details
Promoter
ACDI/VOCA (USAID) with the World Bank Africa Gender Innovation Lab
Period
2014-2018
Keywords
women entrepreneurship, agribusiness, business training, mentoring, microenterprise
Context
Ethiopia's USAID-funded Women in Agribusiness Leadership Network (WALN), implemented by ACDI/VOCA, set out to test whether a cascading, two-stage model — train experienced businesswomen as mentors, then have them coach less-experienced women in their own social and business networks — could improve microenterprise performance more cheaply than direct expert-led training alone.
Objectives
To test whether coaching passed down through informal, unpaid peer mentors can improve microenterprise performance as effectively as, but more cheaply than, direct expert-led training.
Activities
The World Bank's Africa Gender Innovation Lab evaluated the programme as a stratified randomized controlled trial across 96 woredas in five regions (Tigray, Amhara, Oromia, SNNPR and Addis Ababa). From a baseline in March-August 2014, 197 businesswomen (99 treatment, 98 control) received formal training in marketing, record-keeping, financial planning and stock control between August and December 2014. From January to July 2015, the treated businesswomen mentored 295 mentees (with 294 more in a spillover group and 539 controls) drawn from their own networks.
Results
Three post-programme survey rounds (through April 2018) show the direct training effect on mentors was substantial: a profits-and-sales index up 0.21 standard deviations, winsorized profits up 80% and winsorized revenue up 62%, alongside a 0.13 SD gain in business practices. Among mentees, business-practice adoption rose 0.27 standard deviations (marketing practices +0.27 SD, record-keeping +0.18 SD), but the effect on mentees' own profits and revenue (+0.065 SD) was not statistically significant.
Conclusions
The study is a useful cautionary case for cascading models: coaching passed down through informal, unpaid peer mentors changed what mentees did in their businesses, but did not reliably translate into higher mentee earnings within the observation window — a gap the authors attribute to the more diluted, less-customized nature of second-hand mentoring relative to the original expert-led training.
Implementation
Indicative cost
Medium (€50k–€500k)
Time to results
Long (> 3 years) — Baseline March-August 2014; mentor training August-December 2014; mentoring January-July 2015; three post-programme survey rounds through April 2018.
Staffing & skills
ACDI/VOCA programme implementers, 197 trained businesswomen acting as unpaid peer mentors, World Bank Africa Gender Innovation Lab evaluation team
Conditions for success
A formal training curriculum for mentors covering marketing, record-keeping, financial planning and stock control
Mentors drawing on their own pre-existing social and business networks to recruit mentees
Stratified randomisation across 96 woredas and 5 regions, enabling credible impact measurement
Common failure modes
Second-hand, unpaid peer mentoring was more diluted and less customised than the original expert-led training, and did not translate into statistically significant mentee profit gains within the observation window
Where it fits
Governance type
USAID-funded NGO implementation with World Bank/academic evaluation
Scale
multi-region rollout (96 woredas, 5 regions)
Income level
low-income (Ethiopia)
Replication kit
Reusable artefacts from this practice — as published by their sources.
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