The poor in developing countries often run small enterprises, typically with low earnings, although lacking basic business skills. We offer a business skills course to female entrepreneurs in rural Mexico. We find that those randomly assigned to treatment have larger profits and revenues, serve a greater number of clients, and are more likely to use formal accounting techniques. These effects persist in the medium run. We present a simple model to interpret our results: we find that low-quality entrepreneurs appear slightly more likely to quit their business posttreatment and that the positive impacts of the treatment are increasing entrepreneurial quality.
Business Literacy and Development: Evidence from a Randomized Controlled Trial in Rural Mexico
G. Calderón,J. Cunha,G. Giorgi
Published 2013 in Economic development and cultural change
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- Publication year
2013
- Venue
Economic development and cultural change
- Publication date
2013-12-01
- Fields of study
Business, Economics
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Semantic Scholar
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