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Long-Term and Lasting Impacts of Personal Initiative Training on Entrepreneurial Success

Author

Listed:
  • Campos, Francisco

    (World Bank)

  • Frese, Michael

    (Leuphana University Lüneburg)

  • Iacovone, Leonardo

    (World Bank)

  • Johnson, Hillary C.

    (World Bank)

  • McKenzie, David

    (World Bank)

  • Mensmann, Mona

    (University of Cologne)

Abstract

A randomized experiment in Togo found that personal initiative training for small businesses resulted in large and significant impacts for both men and women after two years. We revisit these entrepreneurs after seven years, and find long-lasting average impacts of personal initiative training of $91 higher profits per month, which is larger than the 2-year impacts. However, these long-term impacts are very different for men and women: the impact for men grows over time as they accumulate more capital and increase self-efficacy, whereas the impact for women is flat or declines, and capital build-up is much more limited.

Suggested Citation

  • Campos, Francisco & Frese, Michael & Iacovone, Leonardo & Johnson, Hillary C. & McKenzie, David & Mensmann, Mona, 2025. "Long-Term and Lasting Impacts of Personal Initiative Training on Entrepreneurial Success," IZA Discussion Papers 17672, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17672
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    File URL: https://docs.iza.org/dp17672.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    microentrepreneurship; business training; personal initiative; firm growth;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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