Author Description

There has been an emerging empirical literature on the use of BDPs to improve business knowledge, management practices, and overall profitability of microentrepreneurs in developing countries. However, the effect of such programs is mixed. In the author’s framework, entrepreneurs are ambiguity-averse and have multiple sources of income (e.g., business and wage incomes). The paper shows that a mismatch between a BDP’s narrow focus on business-promoting strategies and the wider context in which microentrepreneurs operate can limit the impact of business training.