IDEAS home Printed from https://ideas.repec.org/p/igi/igierp/645.html
   My bibliography  Save this paper

The Impact of Soft-Skills Training for Entrepreneurs in Jamaica

Author

Listed:
  • Diego Ubfal
  • Irani Arraiz
  • Diether Beuermann
  • Michael Frese
  • Alessandro Maffioli
  • Daniel Verch

Abstract

A randomized control trial with 945 entrepreneurs in Jamaica shows positive shortterm impacts of soft-skills training on business outcomes. The effects are concentrated among men, and disappear twelve months after the training. We argue that the main channel is increased adoption of recommended business practices, exclusively observed in the short run. We see persistent effects on an incentivized behavioral measure of perseverance after setbacks, a focus of this training. We compare a course focused only on soft-skills to one that combines soft-skills training with traditional business training. The effects of the combined training are never statistically significant. Keywords: Business Training, entrepreneurship, soft skills JEL Codes: J24, L25, M13, O12

Suggested Citation

  • Diego Ubfal & Irani Arraiz & Diether Beuermann & Michael Frese & Alessandro Maffioli & Daniel Verch, 2019. "The Impact of Soft-Skills Training for Entrepreneurs in Jamaica," Working Papers 645, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    • Handle: RePEc:igi:igierp:645
    as

    Download full text from publisher

    File URL: https://repec.unibocconi.it/igier/igi/wp/2019/645.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Macours, Karen & Molina Millan, Teresa, 2017. "Attrition in Randomized Control Trials: Using tracking information to correct bias," CEPR Discussion Papers 11962, C.E.P.R. Discussion Papers.
    2. John A. List & Azeem M. Shaikh & Yang Xu, 2019. "Multiple hypothesis testing in experimental economics," Experimental Economics, Springer;Economic Science Association, vol. 22(4), pages 773-793, December.
    3. Fafchamps, Marcel & McKenzie, David & Quinn, Simon & Woodruff, Christopher, 2014. "Microenterprise growth and the flypaper effect: Evidence from a randomized experiment in Ghana," Journal of Development Economics, Elsevier, vol. 106(C), pages 211-226.
    4. Greg Fischer & Dean Karlan, 2015. "The Catch-22 of External Validity in the Context of Constraints to Firm Growth," American Economic Review, American Economic Association, vol. 105(5), pages 295-299, May.
    5. de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
    6. Barton H. Hamilton & Nicholas W. Papageorge & Nidhi Pande, 2019. "The right stuff? Personality and entrepreneurship," Quantitative Economics, Econometric Society, vol. 10(2), pages 643-691, May.
    7. Dean Karlan & Martin Valdivia, 2011. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 510-527, May.
    8. Arielle Bernhardt & Erica Field & Rohini Pande & Natalia Rigol, 2019. "Household Matters: Revisiting the Returns to Capital among Female Microentrepreneurs," American Economic Review: Insights, American Economic Association, vol. 1(2), pages 141-160, September.
    9. Valdivia, Martín, 2015. "Business training plus for female entrepreneurship? Short and medium-term experimental evidence from Peru," Journal of Development Economics, Elsevier, vol. 113(C), pages 33-51.
    10. Imai, Kosuke & Keele, Luke & Tingley, Dustin & Yamamoto, Teppei, 2011. "Unpacking the Black Box of Causality: Learning about Causal Mechanisms from Experimental and Observational Studies," American Political Science Review, Cambridge University Press, vol. 105(4), pages 765-789, November.
    11. Premand, Patrick & Brodmann, Stefanie & Almeida, Rita K. & Grun, Rebekka & Barouni, Mahdi, 2012. "Entrepreneurship Training and Self-Employment among University Graduates: Evidence from a Randomized Trial in Tunisia," IZA Discussion Papers 7079, Institute of Labor Economics (IZA).
    12. Guido W. Imbens & Charles F. Manski, 2004. "Confidence Intervals for Partially Identified Parameters," Econometrica, Econometric Society, vol. 72(6), pages 1845-1857, November.
    13. Alejandro Drexler & Greg Fischer & Antoinette Schoar, 2014. "Keeping It Simple: Financial Literacy and Rules of Thumb," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 1-31, April.
    14. David McKenzie & Christopher Woodruff, 2017. "Business Practices in Small Firms in Developing Countries," Management Science, INFORMS, vol. 63(9), pages 2967-2981, September.
    15. Ross Levine & Yona Rubinstein, 2017. "Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 963-1018.
    16. Sule Alan & Teodora Boneva & Seda Ertac, 2019. "Ever Failed, Try Again, Succeed Better: Results from a Randomized Educational Intervention on Grit," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1121-1162.
    17. David McKenzie & Christopher Woodruff, 2014. "What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?," The World Bank Research Observer, World Bank, vol. 29(1), pages 48-82.
    18. Francisco Campos & Michael Frese & Markus Goldstein & Leonardo Iacovone & Hillary C. Johnson & David McKenzie & Mona Mensmann, 2018. "Is Personal Initiative Training a Substitute or Complement to the Existing Human Capital of Women? Results from a Randomized Trial in Togo," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 256-261, May.
    19. Suresh de Mel & David McKenzie & Christopher Woodruff, 2010. "Who are the Microenterprise Owners? Evidence from Sri Lanka on Tokman versus De Soto," NBER Chapters, in: International Differences in Entrepreneurship, pages 63-87, National Bureau of Economic Research, Inc.
    20. Pamela Jakiela & Owen Ozier, 2016. "Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(1), pages 231-268.
    21. World Bank, 2019. "Doing Business 2019," World Bank Publications - Books, The World Bank Group, number 30438.
    22. Alibhai,Salman & Buehren,Niklas & Frese,Michael Dr. & Goldstein,Markus P. & Papineni,Sreelakshmi & Wolf,Kathrin, 2019. "Full Esteem Ahead ? Mindset-Oriented Business Training in Ethiopia," Policy Research Working Paper Series 8892, The World Bank.
    23. Erica Field & Seema Jayachandran & Rohini Pande & Natalia Rigol, 2016. "Friendship at Work: Can Peer Effects Catalyze Female Entrepreneurship?," American Economic Journal: Economic Policy, American Economic Association, vol. 8(2), pages 125-153, May.
    24. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    25. World Bank Group, "undated". "Economy Profile of Jamaica," World Bank Publications - Reports 32967, The World Bank Group.
    26. Mckenzie,David J., 2020. "Small Business Training to Improve Management Practices in Developing Countries: Reassessingthe Evidence for 'Training Doesn’t Work'," Policy Research Working Paper Series 9408, The World Bank.
    27. Simon Quinn & Christopher Woodruff, 2019. "Experiments and Entrepreneurship in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 225-248, August.
    28. Teresa Molina Millán & Karen Macours, 2017. "Attrition in randomized control trials: Using tracking information to correct bias," FEUNL Working Paper Series novaf:wp1702, Universidade Nova de Lisboa, Faculdade de Economia.
    29. Wyatt Brooks & Kevin Donovan & Terence R. Johnson, 2018. "Mentors or Teachers? Microenterprise Training in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 196-221, October.
    30. Stephen J. Anderson & Rajesh Chandy & Bilal Zia, 2018. "Pathways to Profits: The Impact of Marketing vs. Finance Skills on Business Performance," Management Science, INFORMS, vol. 64(12), pages 5559-5583, December.
    31. Mooradian, Todd & Matzler, Kurt & Uzelac, Borislav & Bauer, Florian, 2016. "Perspiration and inspiration: Grit and innovativeness as antecedents of entrepreneurial success," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 232-243.
    32. Jeanne Lafortune & Julio Riutort & José Tessada, 2018. "Role Models or Individual Consulting: The Impact of Personalizing Micro-entrepreneurship Training," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 222-245, October.
    33. Premand, Patrick & Brodmann, Stefanie & Almeida, Rita & Grun, Rebekka & Barouni, Mahdi, 2016. "Entrepreneurship Education and Entry into Self-Employment Among University Graduates," World Development, Elsevier, vol. 77(C), pages 311-327.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dammert, Ana C. & Nansamba, Aisha, 2023. "Skills training and business outcomes: Experimental evidence from Liberia," World Development, Elsevier, vol. 162(C).
    2. Gonzalez-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “gazelles”: evidence from business accelerators," LSE Research Online Documents on Economics 103145, London School of Economics and Political Science, LSE Library.
    3. Rob Kim Marjerison & Rongjuan Chen & Yinan Lin, 2021. "The Nexus of Social Cause Interest and Entrepreneurial Mindset: Driving Socioeconomic Sustainability," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    4. Albert Bravo-Biosca, 2020. "Experimental Innovation Policy," Innovation Policy and the Economy, University of Chicago Press, vol. 20(1), pages 191-232.
    5. Alessandro Maffioli & David McKenzie & Diego Ubfal, 2023. "Estimating the Demand for Business Training: Evidence from Jamaica," Economic Development and Cultural Change, University of Chicago Press, vol. 72(1), pages 123-158.
    6. González-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “Gazelles”: Evidence from business accelerators," Journal of Financial Economics, Elsevier, vol. 139(1), pages 260-287.
    7. Thomas Le Barbanchon & Diego Ubfal & Federico Araya, 2023. "The Effects of Working While in School: Evidence from Employment Lotteries," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 383-410, January.
    8. Lafortune, Jeanne & Pugatch, Todd & Tessada, José & Ubfal, Diego, 2022. "Can Interactive Online Training Make High School Students More Entrepreneurial? Experimental Evidence from Rwanda," IZA Discussion Papers 15064, Institute of Labor Economics (IZA).
    9. Blimpo, Moussa P. & Pugatch, Todd, 2023. "Unintended Consequences of Youth Entrepreneurship Programs: Experimental Evidence from Rwanda," GLO Discussion Paper Series 1332, Global Labor Organization (GLO).
    10. Le Barbanchon, Thomas & Ubfal, Diego & Araya, Federico, 2020. "The Effects of Working While in School: Evidence from Uruguayan Lotteries," IZA Discussion Papers 13929, Institute of Labor Economics (IZA).
    11. Gonzalez-Uribe, Juanita & Hmaddi, Ouafaa, 2022. "The multi-dimensional impacts of business accelerators: what does the research tell us?," LSE Research Online Documents on Economics 115461, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalton, Patricio & Rüschenpöhler, Julius & Uras, Burak & Zia, Bilal, 2019. "Local Best Practices for Business Growth," Other publications TiSEM fc650e2f-88cf-4d75-8257-f, Tilburg University, School of Economics and Management.
    2. Mckenzie,David J., 2020. "Small Business Training to Improve Management Practices in Developing Countries: Reassessingthe Evidence for 'Training Doesn’t Work'," Policy Research Working Paper Series 9408, The World Bank.
    3. Higuchi, Yuki & Mhede, Edwin P. & Sonobe, Tetsushi, 2019. "Short- and medium-run impacts of management training: An experiment in Tanzania," World Development, Elsevier, vol. 114(C), pages 220-236.
    4. Catia Batista & Sandra Sequeira & Pedro C. Vicente, 2022. "Closing the Gender Profit Gap?," Management Science, INFORMS, vol. 68(12), pages 8553-8567, December.
    5. Lafortune, Jeanne & Pugatch, Todd & Tessada, José & Ubfal, Diego, 2022. "Can interactive online training make high school students more entrepreneurial? Experimental evidence from Rwanda," GLO Discussion Paper Series 1041, Global Labor Organization (GLO).
    6. Anderson, Stephen J. & Chintagunta, Pradeep & Vilcassim, Naufel J., 2023. "Virtual collaboration technology and international business coaching: examining the impact on marketing strategies and sales," LSE Research Online Documents on Economics 120474, London School of Economics and Political Science, LSE Library.
    7. Gonzalez-Uribe, Juanita & Hmaddi, Ouafaa, 2022. "The multi-dimensional impacts of business accelerators: what does the research tell us?," LSE Research Online Documents on Economics 115461, London School of Economics and Political Science, LSE Library.
    8. González-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “Gazelles”: Evidence from business accelerators," Journal of Financial Economics, Elsevier, vol. 139(1), pages 260-287.
    9. Antonia Grohmann & Lukas Menkhoff & Helke Seitz, 2022. "The Effect of Personalized Feedback on Small Enterprises’ Finances in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1197-1227.
    10. Ubfal,Diego Javier, 2024. "What Works in Supporting Women-Led Businesses ?," Policy Research Working Paper Series 10744, The World Bank.
    11. Giambra, Samuele & McKenzie, David, 2021. "Self-employment and migration," World Development, Elsevier, vol. 141(C).
    12. M. Mehrab Bakhtiar & Gautam Bastian & Markus Goldstein, 2022. "Business Training and Mentoring: Experimental Evidence from Women-Owned Microenterprises in Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 71(1), pages 151-183.
    13. Natalie A. Carlson, 2023. "Differentiation in microenterprises," Strategic Management Journal, Wiley Blackwell, vol. 44(5), pages 1141-1167, May.
    14. Helke Seitz, 2020. "Subgroup Analysis of Investment Constraints: Evidence from Ugandan Microenterprises," Discussion Papers of DIW Berlin 1920, DIW Berlin, German Institute for Economic Research.
    15. Sharma, Smriti & Tarp, Finn, 2018. "Does managerial personality matter? Evidence from firms in Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 432-445.
    16. Islam, Asadul & Lee, Wang-Sheng & Triyana, Margaret & Xia, Xing, 2023. "Improving Health and Safety in the Informal Sector: Evidence from a Randomized Trial in Bangladesh," IZA Discussion Papers 16150, Institute of Labor Economics (IZA).
    17. Rodríguez-Lesmes, Paul & Gutierrez, Luis H. & Urueña-Mejia, Juan Carlos & Ortiz, Andres & Medina Rojas, Ivan & Romero, Mauricio, 2023. "The role of local promoters in helping microentrepreneurs engage in digital business training. The case of Expertienda," Documentos de Trabajo 20902, Universidad del Rosario.
    18. Stefan Dimitriadis & Rembrand Koning, 2022. "Social Skills Improve Business Performance: Evidence from a Randomized Control Trial with Entrepreneurs in Togo," Management Science, INFORMS, vol. 68(12), pages 8635-8657, December.
    19. Alaref, Jumana & Brodmann, Stefanie & Premand, Patrick, 2020. "The medium-term impact of entrepreneurship education on labor market outcomes: Experimental evidence from university graduates in Tunisia," Labour Economics, Elsevier, vol. 62(C).
    20. Delius, Antonia & Sterck, Olivier, 2024. "Cash transfers and micro-enterprise performance: Theory and quasi-experimental evidence from Kenya," Journal of Development Economics, Elsevier, vol. 167(C).

    More about this item

    Keywords

    business training; entrepreneurship; soft skills jel codes: j24; l25; m13; o12;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igi:igierp:645. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://www.igier.unibocconi.it/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.