Togo - Firm Surveys for Comparing Personal Initiative Training to Traditional Business Training 2013-2016

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Standard business training programs aim to boost the incomes of the millions of self-employed business owners in developing countries by teaching basic financial and marketing practices, yet the impacts of such programs are mixed. We test whether a psychology-based personal initiative training approach which teaches and promotes a proactive mindset that focuses on entrepreneurial behaviors can have more success. A randomized controlled trial in Togo assigned microenterprise owners to a control group (N=500); a leading business training program (N=500); or to personal initiative training (N=500). Four follow-up surveys track firm outcomes over two years and show personal initiative training increases firm profits by 31 percent, compared to a statistically insignificant 11 percent for traditional training. The training is cost-effective, paying for itself within one year.

Type: 
Microdata
Acronym: 
FSCPIT 2013-16
Languages Supported: 
English
Topics: 
Topic not specified
Geographical Coverage: 
Togo
Release Date: 
July 10, 2017

Last Updated

Last Updated: 
July 10, 2017

Harvest System ID

Harvest System ID: 
Microdata

Harvest Source ID

Harvest Source ID: 
9459
Reference ID: 

TGO_2013_2016_FSCPIT_v01_M

Funding Name, Abbreviation, Role: 
Institute of Labor Economics; World Bank
Study Type: 
Informal Sector Survey [hh/iss]
Unit of Analysis: 
Firm
Primary Investigator Name, Affiliation: 
David McKenzie - World Bank
Sampling Procedure: 
The training forms one component of the Private Sector Development Support Project, a $13 million lending operation from the International Development Association of the World Bank to the Government of Togo. The project launched a four-month communication campaign in Lomé to generate applicants for the program. This involved radio and television advertisements; banners; distributing more than 9,000 flyers; 138 information events partnering with three microfinance institutions, an association of female entrepreneurs, a government agency that works with the informal sector, an artisan's association and the Chambre Régionale des Métiers-Lomé (Regional Chamber of Artisans); and door-to-door communication to firms in 89 different neighborhoods. At the end of this campaign, the project had received 3,396 applications, of which 3,220 met the eligibility criteria which entrepreneurs had been informed about during the communication campaign. As mentioned in the main text, to be eligible firms had to have fewer than 50 employees, not be formally registered at the Chambre de Commerce et de l'Industrie du Togo (Chamber of Commerce) or the Centre de Formalités des Entreprises (Business Formality Center), be in any sector apart from agricultural production, husbandry or fishing, and be in existence for 12 months or more. The eligible applicants were then grouped into 47 distinct strata based on sector of activity and sales range, with equal numbers of companies then randomly chosen from each strata. This weighted the sample in favor of firms with higher sales and those in smaller sectors, while still ensuring representation from across the informal sector. In total 1,794 eligible companies were selected through this process to undergo a baseline survey, with the goal of surveying 1,500. As such, firms that were no longer interested or could not be found would be dropped.
Response Rates: 
Control group response rate was 94% in follow-up 1, 90% in follow-up 2, 91% in follow-up 3, and 88% in follow-up 4. Follow-up response rates for the two treatment groups are similar.
Questionnaires: 
Questionnaires in French and English were used to collect the data.
Time Periods: 
September, 2017

No Visualizations Available.

Campos, Francisco, Michael Frese, Markus Goldstein, Leonardo Iacovone, Hillary Johnson, David Mckenzie and Mona Mensmann (2017) "Teaching personal initiative beats traditional business training in boosting small business in West Africa"

Standard business training programs aim to boost the incomes of the millions of self-employed business owners in developing countries by teaching basic financial and marketing practices, yet the impacts of such programs are mixed. We test whether a psychology-based personal initiative training approach which teaches and promotes a proactive mindset that focuses on entrepreneurial behaviors can have more success. A randomized controlled trial in Togo assigned microenterprise owners to a control group (N=500); a leading business training program (N=500); or to personal initiative training (N=500). Four follow-up surveys track firm outcomes over two years and show personal initiative training increases firm profits by 31 percent, compared to a statistically insignificant 11 percent for traditional training. The training is cost-effective, paying for itself within one year.

FieldValue
Modified Date
2017-10-20
Release Date
Identifier
87ad261c-7b89-41a5-bdff-e1b32ff65912
License
License Not Specified
Contact Email
Rating: 
0
No votes yet
Reference ID: 
TGO_2013_2016_FSCPIT_v01_M
Acronym: 
FSCPIT 2013-16
Type: 
Languages Supported: 
Response Rates: 
Control group response rate was 94% in follow-up 1, 90% in follow-up 2, 91% in follow-up 3, and 88% in follow-up 4. Follow-up response rates for the two treatment groups are similar.
Time Periods: 
September, 2017
Primary Investigator Name, Affiliation: 
David McKenzie - World Bank
Funding Name, Abbreviation, Role: 
Institute of Labor Economics; World Bank
Terms of Use: 
Unit of Analysis: 
Firm
Geographical Coverage: 
Data Classification of a Dataset: 
Sampling Procedure: 
The training forms one component of the Private Sector Development Support Project, a $13 million lending operation from the International Development Association of the World Bank to the Government of Togo. The project launched a four-month communication campaign in Lomé to generate applicants for the program. This involved radio and television advertisements; banners; distributing more than 9,000 flyers; 138 information events partnering with three microfinance institutions, an association of female entrepreneurs, a government agency that works with the informal sector, an artisan's association and the Chambre Régionale des Métiers-Lomé (Regional Chamber of Artisans); and door-to-door communication to firms in 89 different neighborhoods. At the end of this campaign, the project had received 3,396 applications, of which 3,220 met the eligibility criteria which entrepreneurs had been informed about during the communication campaign. As mentioned in the main text, to be eligible firms had to have fewer than 50 employees, not be formally registered at the Chambre de Commerce et de l'Industrie du Togo (Chamber of Commerce) or the Centre de Formalités des Entreprises (Business Formality Center), be in any sector apart from agricultural production, husbandry or fishing, and be in existence for 12 months or more. The eligible applicants were then grouped into 47 distinct strata based on sector of activity and sales range, with equal numbers of companies then randomly chosen from each strata. This weighted the sample in favor of firms with higher sales and those in smaller sectors, while still ensuring representation from across the informal sector. In total 1,794 eligible companies were selected through this process to undergo a baseline survey, with the goal of surveying 1,500. As such, firms that were no longer interested or could not be found would be dropped.
Release Date: 
Monday, July 10, 2017
Last Updated Date: 
Monday, July 10, 2017
Questionnaires: 
Questionnaires in French and English were used to collect the data.
Harvest Source: 
Harvest System ID: 
9459
Citation Text: 
Campos, Francisco, Michael Frese, Markus Goldstein, Leonardo Iacovone, Hillary Johnson, David Mckenzie and Mona Mensmann (2017) "Teaching personal initiative beats traditional business training in boosting small business in West Africa"
Modified date: 
17357
Study Type: 
Informal Sector Survey [hh/iss]
Primary Dataset: 
Yes
Mode of Data Collection: 

Face-to-face

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