New publication in Entrepreneurship Research Journal (open access): Entrepreneurship Trainings and Human Capital Endowment: When Learning from External Sources Does (Not) Increase Performance

26.06.2024

Storz, C., Amoncio, E., & Ramachandran, R. (2024). Entrepreneurship Trainings and Human Capital Endowment: When Learning from External Sources Does (Not) Increase Performance. Entrepreneurship Research Journal, (open access)  https://doi.org/10.1515/erj-2023-0186

 

 

Abstract: Bottom-of-the-pyramid (BoP) entrepreneurs have few resources to draw on besides their human capital. We analyze the effects of a training program teaching lean management to BoP entrepreneurs in Zambia by comparing its performance effects across individuals with high and low levels of specific human capital. We find that participation in the entrepreneurship training program positively affects management practices related to lean management as well as cost reduction for all training participants. The program, however, has no uniform effect on profits. The effect is positive only for entrepreneurs equipped with specific human capital. Moreover, we observe that this effect is in particular strong for entrepreneurs with vocational education compared to work experience. This suggests that the value of entrepreneurship training programs is contingent on human-capital endowment and calls into question existing notions of what it means to offer such programs.

Keywords: randomized experiment; learning; management training; necessity entrepreneurs; emerging markets

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