Small and medium enterprises (SMEs) are thought to be important drivers of growth in developing economies, but entrepreneurs in these countries face many barriers, including poor access to training, finance, and business networks. In Colombia, Fundación Bavaria’s “Destapa Futuro” (Open the Future) program identifies promising enterprises and provides them with a suite of financial, technical, business, and training resources. Researchers found that the trainings did not affect key business outcomes, such as sales and profits, but helped entrepreneurs to expand their business networks.
Impact on Business Outcomes: Sales, costs, profits, number of employees, starting a new business.
Impact of training on business outcomes: Neither CFE nor Endeavor training had significant effects on business outcomes including sales, costs, profits, number of employees, or likelihood of starting a company. Endeavor was somewhat beneficial for network expansion for entrepreneurs with existing startups, while the CFE training was more beneficial for entrepreneurs with only business plans. Impact of In-kind versus cash prizes: The type of prize had no effect on business outcomes, thus, in this context cash may be a preferred option because of its logistic ease.