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Entrepreneurship Programs in Developing Countries: A ... - IYFLive.net

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is most common and often provided with vocational or f<strong>in</strong>ancial tra<strong>in</strong><strong>in</strong>g. 30 Life skills tra<strong>in</strong><strong>in</strong>g iscomb<strong>in</strong>ed with vocational and bus<strong>in</strong>ess tra<strong>in</strong><strong>in</strong>g to foster soft skills complement<strong>in</strong>g technical skillsas a part of counsel<strong>in</strong>g. 31 Counsel<strong>in</strong>g services are also often added for further guidance and mayvary rang<strong>in</strong>g from job search or bus<strong>in</strong>ess set up assistance, to bus<strong>in</strong>ess consult<strong>in</strong>g, and to psychosocialadvis<strong>in</strong>g. Of course, f<strong>in</strong>anc<strong>in</strong>g support is frequently comb<strong>in</strong>ed with tra<strong>in</strong><strong>in</strong>g and provided asa package.The duration of tra<strong>in</strong><strong>in</strong>g widely varies. In general, vocational tra<strong>in</strong><strong>in</strong>g programs have longerspan (about five to six months) as they cover skills tra<strong>in</strong><strong>in</strong>g for certa<strong>in</strong> occupations, while bus<strong>in</strong>esstra<strong>in</strong><strong>in</strong>g shows the shortest duration. Although the duration is an important dimension ofcharacteriz<strong>in</strong>g the tra<strong>in</strong><strong>in</strong>g program, it is not always comparable across studies. Some tra<strong>in</strong><strong>in</strong>g lastsfor longer period with short hours of session (one-hour tra<strong>in</strong><strong>in</strong>g at weekly meet<strong>in</strong>g for microcreditclients for 22 weeks <strong>in</strong> Karlan and Valdiva, 2010), others last similar length with more <strong>in</strong>tensity(six-to-eight hour tra<strong>in</strong><strong>in</strong>g at weekly meet<strong>in</strong>g for six months), and still others consist of a very shortsession (two-to-four hour meet<strong>in</strong>g per week for six weeks; a total classroom time is 48 hours –coded 1.2 weeks).The first column of Table 7 <strong>in</strong>cludes dummies for the different tra<strong>in</strong><strong>in</strong>g components andtheir comb<strong>in</strong>ations with counsel<strong>in</strong>g and f<strong>in</strong>ancial services, the second and third columns add theoutcomes of <strong>in</strong>terest and type of beneficiaries respectively, and the fourth model <strong>in</strong>cludes allcovariates. Like <strong>in</strong> the previous specifications, we <strong>in</strong>clude study and country characteristics <strong>in</strong> allspecifications, and use types of outcomes and beneficiaries as additional explanatory variables. Inall specifications, the comb<strong>in</strong>ation of bus<strong>in</strong>ess and f<strong>in</strong>ancial tra<strong>in</strong><strong>in</strong>g is used for the omittedcategory. When types of beneficiaries are not <strong>in</strong>cluded (columns 1-2), vocational tra<strong>in</strong><strong>in</strong>g seems tohave the best chance of program success especially when comb<strong>in</strong>ed with f<strong>in</strong>anc<strong>in</strong>g components.However, this f<strong>in</strong>d<strong>in</strong>g fades away as types of beneficiaries are added (columns 3-4), suggest<strong>in</strong>g thatthe youth group is account<strong>in</strong>g for most of the significance of vocational tra<strong>in</strong><strong>in</strong>g programs. Also,provid<strong>in</strong>g general bus<strong>in</strong>ess tra<strong>in</strong><strong>in</strong>g seems more effective than more specific and technical f<strong>in</strong>ancialtra<strong>in</strong><strong>in</strong>g when controll<strong>in</strong>g for type of beneficiaries. 32 It seems that vocational tra<strong>in</strong><strong>in</strong>g can be further30 The comb<strong>in</strong>ation of life skills and f<strong>in</strong>ancial tra<strong>in</strong><strong>in</strong>g is not observed.31 Note that life skills tra<strong>in</strong><strong>in</strong>g is never comb<strong>in</strong>ed with f<strong>in</strong>anc<strong>in</strong>g such as microcredit or transfers, although counsel<strong>in</strong>gand advis<strong>in</strong>g is often added to f<strong>in</strong>anc<strong>in</strong>g.32 This implication is consistent with the f<strong>in</strong>d<strong>in</strong>g from Drexler et al. (2011) that simplified version of tra<strong>in</strong><strong>in</strong>g worksbetter than full technical tra<strong>in</strong><strong>in</strong>g.17

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