Taken together, these results suggest that more precise targeting and customization of training may increase its effectiveness. What variables should be used for targeting is not yet clear. One example comes from a recent study by Fafchamps and Woodruff (2015) in Ghana. The authors used two distinct methods to identify firms with high growth potential: the opinions of the judges of a business plan competition and the analysis of the characteristics of the firm and its owner, based on the entrepreneur’s responses to a survey. Half of the entrepreneurs were then randomly selected to participate to a customized management training program. While both methods worked to predict which firms would grow the most, the training program did not show any positive impact on the growth of the business 14 months after it ended, regardless of the firm’s growth potential. This result can be interpreted as an indication that business programs do not alleviate a binding constraint for small entrepreneurs, but may also suggest that a firm’s growth potential is not the right variable to target to increase the effectiveness of a training intervention.

On the whole, training programs appear most likely to improve business outcomes when they get two dimensions right: they target participants who are in a position to benefit from new knowledge and they deliver relevant material in a format that allows participants to internalize it. When working to support women entrepreneurs, this means identifying not only the correct target group but also solutions that address the specific constraints this group faces, including the need to combine business objectives with other commitments, which is especially pressing for women.

# **3. The interventions and design of the experiment**

This study is designed to evaluate the effectiveness of two types of business training targeted to female entrepreneurs in Dar es Salaam provided by a partnership of two NGOs: AIDOS (the Italian Association for Women in Development) and the Tanzania Gatsby Trust (TGT).<sup>2</sup> In the basic version of the training, participants attended in-class sessions providing both management and technical skills. Five full days were allocated to entrepreneurship and business management training (EBMT). The key practices taught during these sessions included market analysis, business plan development, pricing and marketing strategies, cost control, book-keeping, human resources management, leadership training, time management, and communication and negotiation techniques. While the sessions dedicated to management practices were the same for all participants, courses with technical content differed depending on the sector of activity of the entrepreneur. The technical courses were sector-specific as they were intended to strengthen the participants’ production skills, including quality management, packaging and labeling, customer care, compliance with regulation, equipment maintenance, and traceability. The same content of the EBMT and technical training was delivered to both basic and enhanced training participants,

> 2 TGT, based in Dar es Salaam, implemented the intervention and AIDOS, based in Rome, provided advice and technical assistance to TGT, based on a model that AIDOS developed and implemented in some Middle Eastern countries (Jordan, the Arab Republic of Syria, the Gaza strip) and in Nepal.

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