IGL Projects

IGL is undertaking and supporting a number of randomised trials globally.

What is the impact of different types of entrepreneurial training programmes?

Training programmes are one of the policy responses to overcome the barriers that preclude entrepreneurship. This experimental trial plans to unbundle the effect of such programmes by testing two separate entrepreneurship training modules. The first one is focused on non-cognitive skills or successful entrepreneurial traits such as attitudes, personalities and aspirations. The second module will concentrate on business practices such as building a business plan and hiring employees. 

The intervention is made up of three treatment groups and a control group so that the effect of the two components can be studied individually and jointly. In particular, the effect of the training on the selection into entrepreneurship and potential business expansion will be studied. The trial will additionally explore the channels behind these effects in order to derive relevant policy recommendations.

Is it possible or desirable to charge a positive price for entrepreneurship programmes?

How should business training programmes be priced? Billions of dollars are spent subsidising entrepreneurship programmes around the world, and most of these programmes are offered for free in developing countries. However it is not clear that offering these programmes for free to everyone is the optimal solution. Firstly, charging a positive price could help screen those entrepreneurs with the highest returns from the programme. Second, entrepreneurs paying a positive price might be more likely to attend the training, to exert more effort in the learning process and to adopt the practices recommended by the programme. Finally, a positive price can help providers of the entrepreneurship programme improve financial sustainability.

This project is the first RCT to estimate the demand for a business training programme. It will provide valuable lessons about the possibility and desirability to charge a positive price for these programmes. The trial will estimate the demand for entrepreneurship programmes in Jamaica by eliciting willingness to pay (WTP) for an entrepreneurship programme using a variation of the BDM mechanism. It will estimate returns to the programme and test whether those returns vary with WTP. Conclusions from this experiment will be of great policy value to determine whether WTP can be used to better target business training programmes.

 

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