Cost-Effectiveness of Management Training in the Informal Sector. Discussion Paper No. 101.

A research project in the Ivory Coast, Kenya, and Tanzania evaluated the cost effectiveness of management training seminars for women entrepreneurs in the informal sector. Women, a large and growing part of entrepreneurs, had less access to needed resources, skills, and information than men. Reasons for failure to study the cost effectiveness and efficiency of development assistance included lack of clear concepts, methodologies, and standards. Grassroots management training seminars were conducted for businesswomen operating established informal sector businesses. In each country, 40 businesswomen were selected; some were assigned to a control group. A set of indicators was developed to measure benefits. Levels of criteria considered in evaluating outcomes were reaction, learning, behavioral, and result. Impact of the training program was assessed by applying this set of indicators and comparing pre- and postseminar values. Findings indicated that participants appreciated acquisition of management skills, had a more favorable attitude toward learning and the importance of management know-how to improve business, and acquired cognitive skills. Behavioral changes were reflected in the application of acquired skills and knowledge through business expansion by at least one-third of participants in each country. They improved or stabilized their businesses. Benefits to participants exceeded costs in all three countries. (Appendixes include 29 references, a summary of seminar content, and data tables.) (YLB)