Improving Business Practices and the Boundary of the Entrepreneur: A Randomized Experiment Comparing Training, Consulting, Insourcing, and Outsourcing

S-Tier
Journal: Journal of Political Economy
Year: 2022
Volume: 130
Issue: 1
Pages: 157 - 209

Authors (2)

Stephen J. Anderson (not in RePEc) David McKenzie (World Bank Group)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Many small firms lack the finance and marketing skills needed for growth. A standard approach is to train the entrepreneur in these skills. However, rather than requiring entrepreneurs to learn everything, an alternative is to move beyond the boundary of the entrepreneur and link firms to these skills in a marketplace through insourcing workers or outsourcing tasks to professionals. We conducted a randomized experiment in Nigeria to test the relative effectiveness of these different approaches in improving business practices. Insourcing and outsourcing both dominate business training and do at least as well as business consulting at half the cost.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/717044
Journal Field
General
Author Count
2
Added to Database
2026-01-26