This paper revisits and reassesses the evidence for whether small business training works, incorporating the results of recent studies. A meta-analysis of these estimates suggests that training increases profits and sales on average by 5 to 10 percent – with impacts of this magnitude are too small for most experiments to detect statistically. Emerging evidence is provided on five approaches for improving the effectiveness of traditional training, although with considerable variation. Given that training delivers some benefits for firms, the challenge is how to deliver a quality program on a cost-effective basis. Three possible approaches to scaling up training are discussed: using the market, using technology, or targeting and funneling firms.
Blog » Small Business Training to Improve Management Practices in Developing Countries: Reassessing the Evidence for “Training Doesn’t Work” (2020)
Small Business Training to Improve Management Practices in Developing Countries: Reassessing the Evidence for “Training Doesn’t Work” (2020)
This paper revisits and reassesses the evidence for whether small business training works, incorporating the results of recent studies. A meta-analysis of these estimates suggests that training increases profits and sales on average by 5 to 10 percent – with impacts of this magnitude are too small for most experiments to detect statistically. Emerging evidence is provided on five approaches for improving the effectiveness of traditional training, although with considerable variation. Given that training delivers some benefits for firms, the challenge is how to deliver a quality program on a cost-effective basis. Three possible approaches to scaling up training are discussed: using the market, using technology, or targeting and funneling firms.