Region
Sub-Saharan Africa

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"This study evaluates the impact of business-development-support programs (credit, training, and a combination of both) on the performance of micro- and small enterprises (MSEs) in Ethiopia. Using 2015 Ethiopian urban survey data and employing endogenous-switching regressions for multiple treatments, we document a positive and significant effect of credit, training, and a combination of training and credit on MSEs. Our results highlight the heterogeneity in treatment effects between women- and men-owned MSEs: women-owned businesses do not benefit from access to treatments. Our results suggest that improving the performance of MSEs requires fine-tuned interventions that meet the specific needs of men and women who own small businesses rather than one-size-fits-all programs."

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"In 2015 and 2016, ANDE held roundtables on green inventing in Brazil, India, Kenya, Mexico, and South Africa with a diverse group of participants. The report compiles the findings from these discussions, from desk research, and from interviews with subject matter experts on the areas where invention-based entrepreneurs who promote environmental responsibility require ecosystem-level support in order to succeed."

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"The following case study offers a micro-level analysis of a social impact company in East Africa and their approach to measuring social impact. In this policy paper, Public Policy Fellow Jamie Van Leeuwen and Michael Feinberg analyze the case study of Staffable, a social impact company in Kampala, Uganda and their approach to measuring the efficacy of social impact. They provide policy recommendations on how philanthropists, investors, and non-governmental organizations can standardize performance metrics to measure social impact investing, as well as recommend investments in workforce development in order to reduce dependency."

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"The vast majority of micro and small enterprises (MSEs) in developing countries are located in industrial clusters, and the majority of such clusters have yet to see their growth take off. The performance of MSE clusters is especially low in Sub-Saharan Africa. While existing studies often attribute the poor performance to factors outside firms, problems within firms are seldom scrutinized. In fact, entrepreneurs in these clusters are unfamiliar with standard business practices. Based on a randomized experiment in Ghana, this study demonstrates that basic-level management training improves business practices and performance."

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"Firm productivity is low in African countries, prompting governments to try a number of active policies to improve it. Yet despite the millions of dollars spent on these policies, we are far from a situation where we know whether many of them are yielding the desired payoffs. This paper establishes some basic facts about the number and heterogeneity of firms in different sub-Saharan African countries and discusses their implications for experimental and structural approaches towards trying to estimate firm policy impacts. It shows that the typical firm program such as a matching grant scheme or business training program involves only 100 to 300 firms, which are often very heterogeneous in terms of employment and sales levels. As a result, standard experimental designs will lack any power to detect reasonable sized treatment impacts, while structural models which assume common production technologies and few missing markets will be ill-suited to capture the key constraints firms face. Nevertheless, the author suggests a way forward which involves focusing on a more homogeneous sub-sample of firms and collecting a lot more data on them than is typically collected."

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"Almost all firms in developing countries have fewer than ten workers, with a modal size of one. Are there potential high-growth entrepreneurs, and can public policy help identify them and facilitate their growth? A large-scale national business plan competition in Nigeria provides evidence on these questions. Random assignment of US$34 million in grants provided each winner with approximately US$50,000. Surveys tracking applicants over five years show that winning leads to greater firm entry, more survival, higher profits and sales, and higher employment, including increases of over 20 percentage points in the likelihood of a firm having ten or more workers."

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"This report identifies challenges and success factors for small, micro and medium businesses (SMME) in South Africa that use an inclusive business approach. It provides policy recommendations on how to support SMME spread their potential to tackle social and environmental problems in South Africa."

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"A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors. This study tests this possibility using a two-stage randomized experiment in Kenya. The experiment randomizes business training at the market level, and then within markets to selected businesses. Three years after training, the treated businesses are selling more, earn higher profits, and their owners have higher well-being.
There is no evidence of negative spillovers on the competing businesses, and the markets as a whole appear to have grown in terms of number of customers and sales volumes. This market growth appears to come from enhanced customer service and new product introduction, generating more customers and more sales from existing customers. As a result, business growth in underdeveloped markets is possible without taking sales away from non-treated businesses."

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"Investigating what characterizes women’s entrepreneurship and what type of enterprise development support they need sheds light on the importance of understanding what drives exclusion and inclusion in social, political and economic processes in societies. This paper aims to contribute to the debate by discussing the importance and practicalities of gender-aware WED. Gender-aware WED recognizes the gendered risks and uncertainties in which women operate their businesses and assists women in coping with these insecurities at home, in the community and in the business environment. In addition, it strives to create a level playing field by ensuring access to, and control over, resources and opportunities for all entrepreneurs, regardless of business type, industry choice, gender, age, health status, location or ethnicity."

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"Training programmes are popular development interventions that aim to address problems of youth unemployment. This paper estimates the impact of a youth entrepreneurship programme in Tanzania on financial literacy and employment knowledge. Using primary data within a successive cohort design in a community-led programme, the authors employed propensity score matching and fixed-effect estimation methods to assess changes in knowledge, skills and attitudes of marginalised youth. They found strong positive effects of the programme on key intermediate employment outcomes: savings ability, employment confidence and personal finance. The positive impact of this programme supports youth entrepreneurship training programme and non-experimental evaluation methods."

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