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Teaching Business in Tanzania: Evaluating Participation and Performance

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  • Kjetil Bjorvatn
  • Bertil Tungodden

Abstract

There is increased awareness that success among small-scale entrepreneurs in developing countries requires more than microfinance, and that an important limiting factor for business growth is the level of human capital among the entrepreneurs. The present paper uses a randomized control trial to evaluate a business training program in Tanzania. Our results show that there is a positive average treatment effect on business knowledge. It also appears that training has a stronger effect on the entrepreneurs with less formal education. Paradoxically, these entrepreneurs are also less consistent in their participation in the training program. An important implication from our study is therefore that when providing business training, special care should be given to ensure high participation rates. (JEL: C93, I21, J24, O12) (c) 2010 by the European Economic Association.

Suggested Citation

  • Kjetil Bjorvatn & Bertil Tungodden, 2010. "Teaching Business in Tanzania: Evaluating Participation and Performance," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 561-570, 04-05.
    • Handle: RePEc:tpr:jeurec:v:8:y:2010:i:2-3:p:561-570
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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