Dr. Elena Vinogradova May 30, 2012

Dr. Elena Vinogradova May 30, 2012

Role of Technology in Entrepreneurship Training: Evidence from HP LIFE Program

About the program

• Hewlett-Packard Learning Initiative for Entrepreneurs (HP LIFE)

• LIFE* curriculum = ICT skills + business skills• Experiential learning methodology• 340 centers in 49 countries across the globe;

reached 1.2 million people with face-to-face training, access to IT and online activities since 2007

2* The LIFE Curriculum was developed by Micro-Enterprise Acceleration Institute (MEA-I) in partnership with Hewlett-Packard.

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HP LIFE Ecosystem

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Evaluation framework

The evaluation tested two assumptions:Assumption 1:

Increased application of ICT tools or software leads to improved employment and entrepreneurship outcomes among disadvantaged youth in developing countries.

Assumption 2:Technology-based tools, such as online training content and/or games, increase the program’s effectiveness.

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Evaluation questions

Outcome evaluation questions:1. To what extent do graduates of the HP LIFE program

experience increased income and other benefits as a result of the training?

2. To what extent do graduates of the HP LIFE program use the ICT tools in their business, employment, or search for employment?

3. To what extent did the ICT tools prove to be relevant to the businesses the youth created or the employment they found?

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Evaluation questions

Process evaluation questions:1. How relevant do youth trainees find the LIFE

curriculum and online tools to their needs for starting or strengthening a micro-business or finding employment?

2. How effective is the use of technology in transferring skills and information to the youth trainees?

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About the evaluation

• November 2011 through April 2012• Retrospective baseline• China, India, Kenya, Nigeria and South Africa• Mixed methods: online survey + interviews and focus

groups• 506 completed online surveys• 3 FGs with current participants, 8 interviews with

trainers and 18 interviews with past participants8

Limitations

• Self-selected sample (not representative)• Non-experimental study: attribution

limitations• Modular curriculum, sometimes implemented

with other training modules• Online component is fast evolving, some

findings could be outdated

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Online survey: countries

China India Kenya Nigeria South Africa0%

5%

10%

15%

20%

25%

30%

35%

30.8%

14.4%

10.5%

30.8%

13.4%

Countries (n=506)

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Online survey: age

less than 16 16 through 20 21 through 24 25 though 30 31 and older0%

5%

10%

15%

20%

25%

30%

35%

0.6%

15.8%

32.3%

27.8%

23.5%

Age of Survey Respondents (N=486)

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Online survey: gender

60.7%

39.3%

Gender (n=506)

Male

Female

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Online survey: education

Completed primary school

Some secondary school

Completed secondary school

Vocational training

Some college

Completed college

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

0.8%

5.2%

17.9%

5.6%

24.2%

46.4%

Education level of respondents (n=504)

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Outcome evaluation findings

1. Program is benefiting trainees in multiple ways:• Majority reported small to moderate income increase• One in five entrepreneurs over 20% income increase• Improved business efficiency• Increase in ICT proficiency and use of technology• Improvements in “soft” skills (e.g., communication, customer

relations) and in self-confidence2. Vast majority use basic features of ICT for job or business3. ICT is relevant although not always “critically important”

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Reported income increase

decreased did not change

increased 1-5%

increased 6-10%

increased 11-20%

increased more than

20%

not sure0%

5%

10%

15%

20%

25%

30%

35%

3.6%

8.9%

32.1%

19.6%

10.7%

19.6%

5.4%2.2%

25.0%27.9%

25.0%

3.7%

9.6%6.6%

Increase in income as a result of HP LIFE training

Entrepreneurs (n=56) Employed (n=136) 15

Improved business efficiency

0%

10%

20%

30%

40%

50%

60%

70%

80%

14.3% 14.3% 14.3% 14.3% 14.3%

10.7% 10.7% 10.7% 10.7% 10.7%

24.6%

39.3%

47.5% 49.2% 49.2%

Business improvements as a result of HP LIFE training (n=56)

experienced increase in use of technology

not sure

did not experience increase in use of teachnology

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Use of ICT tools

telecommunication tools (n=291)

text-processing software

spreadsheets (n=306)

presentation software (n=298)

databases (n=289)0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6.2% 3.9% 8.8%

19.1%

32.2%17.5%

27.6%26.8%

45.9%

42.6%

17.5%16.1%

31.7%

20.8% 13.1%

58.8% 52.3% 32.7% 14.1% 12.1%

Use of ICT tools by type

don't use monthly or more rarelyweekly daily 17

Increase in ICT proficiency

telecommunication tools (n=165)

text processing software (n=184)

spreadsheets (n=169) presentations software (n=144)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

26.1% 25.6% 34.9% 33.3%

67.3% 70.1%

60.4% 61.8%

5.5% 4.3% 4.7% 4.9%

Amount learned about the telecommunications tools from HP LIFE program (n=165)

little/some quite a lot all that I know18

ICT proficiency and income increase, controlling for prior knowledge

Benefit Correlation with income increase for entrepreneurs

Correlation with income increase for the employed

Text processing software p=.361** p=.374***Spreadsheets p=.696*** p=.217**Presentations p=.507*** p=.223**Telecommunications tools p=.374** p=.227**

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* significant at .05 level, one tail test** significant at .01 level, one tail test*** significant at .001 level, one tail testNS: not significant

ICT proficiency and income increase

Linear Regression Model• Interaction term of prior knowledge of spreadsheets

and increased proficiency explained 47.4% of the variance in the reported increased income variable among entrepreneurs

• Interaction term of prior knowledge of text-processing software and increase in proficiency explained 13.3% of the variance in the reported increased income variable among the employedd 20

Other benefits of training

spreadsheet software

presentation software

text processing software

database software

telecommunication tools

0% 5% 10% 15% 20% 25%

10.2%

11.7%

13.0%

13.1%

19.3%

11.9%

7.5%

12.1%

8.4%

21.2%

Perceptions of Software Knowledge as “Critically Important” to Business or Job Success

Employed Entrepreneurs 21

Other benefits of training

other

mentoring

interaction with trainees

encouragement

new business contacts

new business ideas

0% 10% 20% 30% 40% 50% 60% 70% 80%

1.6%

42.6%

50.8%

52.5%

63.9%

63.9%

4.2%

40.8%

57.7%

58.5%

54.2%

68.3%

Benefits of HP LIFE training beyond ICT skills

Employed (n=142) Entrepreneurs (n=61) 22

Training and income increase

Benefit Correlation with income increase for entrepreneurs

Correlation with income increase for the employed

Encouragement p=.335** p=.158*Mentoring NS p=.375***Interaction with other trainees NS p=.321***

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* significant at .05 level, one tail test** significant at .01 level, one tail test*** significant at .001 level, one tail testNS: not significant

Training and income increaseBenefit Correlation with income

increase for womenCorrelation with income increase for the men

Encouragement NS p=.370*Mentoring p=.275** p=.331***Interaction with other trainees NS p=.353***

New business ideas NS p=.194*

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* significant at .05 level, one tail test** significant at .01 level, one tail test*** significant at .001 level, one tail testNS: not significant

Skills that youth need

conflict resolution

marketing and sales

team building

networking

public speaking

leadership skills

communication

management

0% 10% 20% 30% 40% 50% 60%

34.6%

40.9%

42.5%

46.2%

47.0%

48.2%

53.2%

56.3%

Other non-technology skills HP LIFE trainees would like to learn

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Evaluation questions

Process evaluation questions:1. How relevant do youth trainees find the LIFE

curriculum and supplemental online resources to their needs for starting or strengthening a micro-business or finding employment?

2. How effective is the use of technology in transferring skills and information to the youth trainees?

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Curriculum delivery

Experiential learning methodology• Face-to-face instruction• Off-line practical exercises on computers• Supplemental online resources

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Relevance of the curriculum

Not well Some needs addressed well

Most needs addresses well

All needs addressed well

not sure0%

10%

20%

30%

40%

50%

60%

2.2%

22.8%

53.2%

20.3%

1.5%

Perceptions of relevance of HP LIFE training for the country-specific needs of young people (n=404)

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Modes of curriculum delivery

face-to-face interaction (n=399) practical exercises using computers (n=400)

tips, blogs and other online resources (n=393)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20.5%22.6%

31.0%

79.5% 73.8% 41.2%

3.8%

27.7%

Perceptions of usefulness of different modes of the curriculum de-livery

did not use not very useful all/most was useful 29

Online resources

Online games

Blogs

Success stories

Tips on using technology

Tips about running a business

Tips about marketing

0% 10% 20% 30% 40% 50% 60% 70% 80%

17.2%

31.8%

47.6%

62.2%

64.9%

67.6%

Most useful features of HP LIFE online resources on en-trepreneurship (n=296)

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Conclusions

• LIFE curriculum found to be effective in improving youth outcomes in developing countries

• ICT useful and correlates with income increase• Mentoring and encouragement found to correlate

with reported income increase• Communication skills reported very important• Technology plays an important role but not

necessarily “critically important”31

Conclusions (cont.)

• LIFE curriculum found to be relevant for youth in developing countries– Emphasis on ICT– BTB model

• Technology can play a very important role if adapted to the local context and infrastructure

• Follow-up support (“bridging services”) is missing

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…from the cover page

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…from the cover page

Rachel is 33 years old and lives in Nigeria. After participating in HP LIFE training, Rachel started her "Bridge Farm" with a farm house, chicken pens, offices and storage. "I was unemployed and looking for a job for nearly two years. It was a difficult time," says Rachel. "But through the HP LIFE training, I learnt a lot and became more focused on my business vision. I can now communicate effectively with people, and acquire skills and knowledge from my colleagues and other experts. The training taught me how to run my day-to-day business activities regarding operation and management. I now use Microsoft Outlook for scheduling appointments and creating my client contacts. The communication skills have helped me to become a better salesperson and to expand my business contacts“. 34

Bridge Farm - a Source of Healthy Food and Job Opportunities

The farm now has 242 birds ready for the market. In the future, she hopes to extend into fish breeding, snail farming and animal product processing and storage. Today, Bridge Farm is not only a source of healthy food but also provides job opportunities for a community that badly needs both. But it is more than that; it is an inspiration for many.

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Implications for future entrepreneurship programming

• ICTs are relevant for entrepreneurs• Purposeful integration of soft skills is helpful• Importance of “bridging services” and mentorship,

particularly for female youth• Experiential learning methodology• Face-to-face mode of delivery with computer support–

what are implications for scaling?• Online content delivery may only be effective in contexts

with adequate ICT infrastructure36