What if every entrepreneur had access to business education?

What if..

every entrepreneur had access to business education?

Rajesh Chandy Tony and Maureen Wheeler Chair in Entrepreneurship

Academic Director, Deloitte Institute of Innovation & Entrepreneurship Professor of Marketing

Entrepreneur

A person who sets up a business or businesses, taking on financial risks in the hope of profit

Micro Entrepreneur owner of a business <=5 employees generally informal

Profoundly Important

Micro businesses matter

Employers, taxpayers, productive citizens

Customers, suppliers, distributors

What if..

every entrepreneur had access to

business education?

Stephen Anderson-MacDonald

What if every entrepreneur had access to business education?

impact on prosperity, growth, and employment?

With Stephen Anderson-MacDonald, Bilal Zia

Doubts: about business education

Policy Makers

Researchers

Experts Muhammad Yunus: “[The poor] do not need us to teach them how to survive; they already know. So rather than waste our time teaching them new skills, we try to make maximum use of their existing skills. Giving the poor access to credit allows them to immediately put into practice the skills they already know.” (1999)

832 entrepreneurs randomly assigned

into 3 groups:

marketing, finance, control

Randomized Controlled Trial

Marketing Training

Control (no training)

vs. vs.

Finance Training

Control (no training)

1 3 2 3

Overview of Study

Interventions

- 10 modules (weekly): concentrate on one business function (marketing or finance) - Focused on changing business behaviors

Marketing Training

Control (no training)

vs. vs.

Finance Training

Control (no training)

1 3 2 3

Results: 18 months later..

Marketing Training

Control (no training)

vs. vs.

Finance Training

Control (no training)

1 3 2 3

Results: 18 months later..

Survival

Marketing: 9.7% Finance: 12.7%

Marketing Training

Control (no training)

vs. vs.

Finance Training

Control (no training)

1 3 2 3

Results: 18 months later..

Profits

Marketing: 86% Finance: 75%

Marketing Training

Control (no training)

vs. vs.

Finance Training

Control (no training)

1 3 2 3

Results: 18 months later..

Sales

Marketing: 69% Finance: 39%

Marketing Training

Control (no training)

vs. vs.

Finance Training

Control (no training)

1 3 2 3

Results: 18 months later..

Employees

Marketing: 62% Finance: 33%

Pathways to Profits

vs

What if..

every entrepreneur had access to (quality) business education?

• Solve poverty through better business?

What if we could..

• Learn about ourselves through the lives of micro-entrepreneurs?

• Offer (quality) business education to millions of entrepreneurs?

Pathways to Profits

Thank you

rchandy@london.edu