Furthermore, adapting these programs to be more accessible and relevant to women can significantly increase their participation (Beegle et al. 2020, IFC 2020).

# 3.1 Traditional business training programs

An influential review of randomized controlled trials across various contexts has largely found no statistically significant average effects of traditional business training programs on the performance of entrepreneurs, regardless of gender (McKenzie and Woodruff 2014). While these programs have been successful in promoting the adoption of certain business practices associated with business growth (McKenzie and Woodruff 2017), the extent of change has generally been too minor to enhance overall business performance.

However, new evidence suggests that the impact of traditional business training might not be negligible. A meta-analysis reported in McKenzie (2021) and McKenzie et al. (2023), which included new RCTs with greater statistical power, revealed that the average training program could increase sales by 5 percent and profits by 10 percent. This implies that such programs could be cost-effective, provided the expenses are sufficiently low. Nonetheless, some studies, such as the RCT by Gine and Mansuri (2021) and the review by Jayachandran (2021), indicate that the effects are smaller for women entrepreneurs, especially in contexts where social norms limit their opportunities.

Innovative approaches to business training have shown promise in enhancing outcomes for women. For instance, Field et al. (2016) demonstrated that when women were permitted to bring a friend to training sessions, they set more ambitious business goals and were more likely to take out loans, underscoring the potential importance of peer support in elevating women’s business aspirations.<sup>5</sup> Khandelwal and Singh (2023) provided evidence that the effects of a short business training were stronger when participants were matched to attend with a close female friend who is central in the network. Similarly, Lafortune et al. (2018) found that including successful entrepreneurs as role models in training significantly amplified its effectiveness. In summary, while traditional business training programs alone may not substantially improve the performance of women-led businesses, adapting the content, focus, or implementation of these programs could render them more cost-effective and impactful.

# 3.2 Approaches to make traditional business training costeffective at scale

The modest impacts of traditional business training can become a profitable investment for women-led firms, especially when participant costs are low or the programs are better targeted. McKenzie (2021) outlines three strategies that governments can employ to deliver business training on a large scale: developing a market for business services, providing virtual training, and targeting.

Firstly, the development of a market for business services is essential for scalability (Argidius Foundation 2021). Maffioli et al. (2023) demonstrate in Jamaica that both men and women-led firms are willing to pay for business training, suggesting that entrepreneurs perceive potential profitability in such training.

> 5 However, there is evidence that it is also important to avoid training programs generating unrealistic aspirations that might lead to frustration (McKenzie et al. 2022).

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