Theme
Capacity Development

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"Building on Youth Business International's policy recommendations to date, this report compiles a series of case studies that each illustrate how the finance gap can be closed for young and other underserved entrepreneurs through providing non-financial support, such as training and mentoring. This integrated approach reduces the risk of lending to youth and other underserved demographics, and the value of the non-financial support substitutes for collateral and other types of guarantee."

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"We evaluate a technology entrepreneurship training program by comparing career decisions among applicants accepted into the program with unaccepted applicants who are program finalists. We find that program participation is associated with an increased likelihood of subsequent entrepreneurship but that this is not uniform across participants; the estimated relationship between program participation and subsequent entrepreneurial activity is disproportionately lower for applicants with ex-ante resources and capabilities in entrepreneurship, measured by prior entrepreneurship experience. Moreover, we only observe this reduced impact of the program on subsequent entrepreneurial activity for participants that have prior experience in founding a technology company as opposed to other forms of entrepreneurial activity. This suggests the program is more effective for individuals that have otherwise limited access to technology entrepreneurship opportunities."

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"Banks in emerging markets are increasingly providing non-financial services to their SME clients, typically consisting of information sharing, training and consultancy. This study, published by IFC in partnership with the Austrian Government, is the first to explore reasons behind this trend, finding that banks' key motivations include attracting and retaining customers and strengthening portfolio quality. The report consists of an overview followed by case studies of three banks, namely namely Türk Ekonomi Bankasý (TEB), Standard Chartered Bank (SCB), and ICICI Bank."

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"Using survey data on Macedonian firms that participated in USAID programs providing technical and financial assistance for small and medium-sized enterprises (SMEs) and on firms that did not, we estimate the effectiveness of such assistance in increasing the growth of employment in the assisted firms. We control for selection bias in program participation and use both kernel and caliper propensity score matching to estimate the excess growth of employment in assisted firms. We find that assistance programs raised employment growth by 16-20 percentage points in the first year after assistance and by 26-30 points by the third year."

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"Villgro is a business incubator with a unique rural orientation. It concerns itself not only with the launch of new businesses but more generally with the transfer of new products, knowledge and services into rural space. Faced with the challenge of finding technologies that match rural requirements, Villgro has linked marketable product/service concepts from diverse sources with entrepreneurs who have start-up experience—so-called serial entrepreneurs. Other incubators may have difficulty imitating Villgro’s business model. The conditions for its development are unique, its management approaches are relatively untested and the values of its management team are deeply intertwined with perceptions of how the rural business system operates in India. However, other startup incubators can learn from Villgro the importance of getting management basics right before attempting to transform an entire agricultural sector. Good governance, transparency, accountability, building teams around highly capable employees and continuously enhancing their management skills are important no matter the strategic orientation of the emerging incubator."

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"Peer networks are seen as important for stimulating innovation and entrepreneurship, but little is known about how the structure and composition of networks affect innovation performance. Researchers compared the effects of face-to-face and virtual peer interaction on the submission and quality of business proposals by individuals from 49 African countries enrolled in an online entrepreneurship course. They found that face-to-face networks and the virtual interaction of groups of entrepreneurs of the same nationality increased the submission of business proposals to a funding competition, but that virtual interaction had no effect when groups were formed with entrepreneurs of different nationalities. Virtual interaction among entrepreneurs of the same nationality was also found to increase the quality of submitted business proposals."

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"The review aims primarily to synthesize the evidence on the effects of vocational and business training programmes that aim to improve women's labour market outcomes. It also seeks to improve understanding of the barriers to and facilitators of vocational and business training effectiveness for women. This systematic review by Chinen and colleagues examined the effects on employment, income, sales, and profits. They find that vocational and business training, on average, leads to minor improvements in women's economic well-being. Differences in the programmes' effectiveness suggest that having a gender focus leads to larger impacts on women. The authors conclude that skill-building programmes may be effective when carefully designed with local gender norms in mind."

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"Business training programs are a popular policy option to improve the performance of enterprises around the world, and the number of rigorous impact evaluations of these programs is growing. A critical review reveals that many evaluations suffer from small sample sizes, measure impacts only within a year of training, and experience problems with survey attrition and measurement that limit the conclusions one can draw. Over these short time horizons, there are relatively modest effects of training on the survivorship of existing firms. However, there is stronger evidence that training programs help prospective owners launch new businesses more quickly. Most studies find that existing firm owners implement some of the practices taught in training, but the magnitudes of the improvement to practices is often modest. Few studies find significant impacts on profits or sales, although some studies with greater statistical power have done so. There is little evidence to guide policymakers regarding whether any identified effects are due to trained firms drawing sales from competing businesses rather than through productivity improvements or to guide the development of the provision of training at market prices. We conclude by summarizing some directions and key questions for future studies."

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"What do accelerators do? Broadly speaking, they help ventures define and build their initial products, identify promising customer segments, and secure resources, including capital and employees. More specifically, accelerator programs are programs of limited-duration—lasting about three months—that help cohorts of startups with the new venture process. They usually provide a small amount of seed capital, plus working space. They also offer a plethora of networking opportunities, with both peer ventures and mentors, who might be successful entrepreneurs, program graduates, venture capitalists, angel investors, or even corporate executives. Finally, most programs end with a grand event, a “demo day” where ventures pitch to a large audience of qualified investors."

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"Social impact accelerators (SIAs) seek to select startups with the potential to generate financial returns and social impact. Through the lenses of signaling theory and gender role congruity theory, we examine 2324 social startups that applied to 123 SIAs globally in 2016 and 2017 and find that SIAs are more likely to accept startups that signal their economic and social credibility. Moreover, while we find that the influence of these signals is strongest when they are congruent with the stereotypes associated with the lead founder's gender, men seem to experience better outcomes from gender incongruity than women."

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