VoxDev Development Economics S6 Ep44: What have we learned about training entrepreneurs?
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Nov 5, 2025 David McKenzie, a World Bank economist and senior editor of the VoxDevLit, dives into the intricacies of training entrepreneurs in developing countries. He discusses the diverse needs of different types of businesses, from subsistence microenterprises to high-growth startups. McKenzie reveals that while many skills can be taught, not all training has lasting effects. He emphasizes the importance of realistic outcomes and highlights that innovative delivery methods, including AI, are emerging in entrepreneur training. Finally, he considers the significant role of women in entrepreneurship.
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Togo Program Boosted Profits 30%
- A personal-initiative program in Togo raised profits by about 30% over a couple of years, far above standard training.
- That program taught proactivity, planning, and learning from failure and outperformed typical classroom courses.
Some Training Effects Persist Long-Term
- Longer-term follow-ups now show some programs produce persistent impacts up to 7–9 years.
- Persistence varies: some programs' benefits fade while others remain substantial.
Group Consulting Scales Consulting Impact
- For medium firms, use consulting but reduce cost by working with small groups of firms.
- Group consulting cut per-firm costs and delivered long-lasting large revenue gains in Colombia.