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Programs for business training have long been a mainstay of development policy, with the potential to be vital instruments for promoting economic expansion, developing entrepreneurial abilities, and increasing the general business climate. However, there has been conflicting data regarding their efficacy, particularly for women. Women entrepreneurs frequently have particular difficulties, such as reduced mobility and time constraints brought on by unpaid caregiving, which can make it difficult for them to take advantage of conventional in-person training programs.

The Promise of Digital for Women

Digital platforms provide the ability to scale rapidly, save expenses, and provide flexibility that may better accommodate women’s schedules. Does this promise, however, translate into reality?

For 2,000 Ethiopian women entrepreneurs, our study compared in-person instruction with app-based training using a Randomised Control Trial. The business curriculum was the same for both training courses. The app-based version allowed for self-paced learning with interactive components, while the in-person option was offered in 11 biweekly sessions spread over six weeks. Participants in both programs had to have some prior business expertise, covering topics such as accounting, marketing, and business planning.

The study examines the effects of the training on women-owned enterprises, the cost-effectiveness of the interventions, and the completion rate for the two modalities. In order to maximise the viability of app-based training and offer a “proof of concept” for digital training for women in low-income environments, the women participated were specially selected. These individuals were Internet-savvy, growth-oriented business owners who were willing to participate in digital training.

Findings: A Warning Regarding Digital Training

High early Participation: The early uptake of the in-person (76%) and app-based (80%) training programs was robust. This was made possible in part by enumerators who led and supported participants during in-person information sessions for the app-based training’s first module.

Low Digital Completion: In spite of the strong initial engagement, the digital training’s completion rates (i.e., completing at least 8 modules to obtain a certificate) were much lower at 22% than those of the in-person training (71%). It’s crucial to remember, too, that low completion rates are common in the e-learning app market.

Ineffective Extra Efforts: Weekly reminders, cash-prize incentives, and offline app access were among the engagement-boosting strategies that did not increase completion rates. Poor outcomes were also seen with a networking function that was intended to promote peer contact through chat rooms. This was caused in part by low participant involvement and a government block on the most popular chat site.

Underwhelming Impact on enterprises: Neither training modality significantly impacted the students’ enterprises’ success (sales and earnings) or survivability (remaining open), despite variations in participation and completion rates. Comparing the study to a control group that did not get training, it likewise found no discernible effects on business inputs, capital, practices, or knowledge gain.

Digital vs. In-Person Training Costs

We also contrast the expenses of in-person and digital training delivery. The in-person curriculum was about 84% more expensive than the digital option when considering solely the cost per student. However, given its lower completion rates, app-based training had a significantly higher average cost per participant who finished the course.

Offering asynchronous training, like the app-based curriculum, to more people at nearly $0 direct marginal cost is one of its main benefits. An additional experiment in this study, however, shows that in-person demonstration sessions—where users were assisted in downloading and logging onto the app—were essential for establishing engagement. The overall marginal cost of executing a digital program is increased by the requirement of these in-person sessions.

Insights for Formulating Policies

Our research provides insightful guidance for creating and executing training initiatives that assist the expansion and success of women-led enterprises:

It is important to proceed cautiously when considering the potential of digital technology for training delivery: Low completion rates resulted from most students dropping out of the app-based instruction, despite the initial high level of enthusiasm. Despite focussing on educated and driven female entrepreneurs with smartphones and internet access, this lack of follow-through occurred.

App dedication is difficult: It’s really challenging to keep people interested in app-based training. Even well-educated entrepreneurs, according to post-experiment questionnaires, lacked the digital literacy and self-assurance necessary to resolve simple technological problems, including difficulty logging back in. If users were sufficiently motivated to troubleshoot independently, stronger gamification aspects (scoring, competition, incentives) may make an app more interesting and promote digital learning-by-doing. Furthermore, the greater in-person training completion rates suggest that the social aspects of attending sessions may act as a commitment tool to help those with self-control problems. To boost app adoption, similar commitment devices could be created.

Although digital training is less expensive to scale, it might not be as cost-effective as it first seems because other expenses might need to be taken into account. Take-up required in-person onboarding, which increased the expense of providing digital training.

Business training might not be sufficient on its own to produce outcomes. The results demonstrate that business training—including app-based programs—does not significantly improve the success of companies run by women. This implies that in order for training to have a significant impact, it might be necessary to combine it with other treatments that target the various barriers that female entrepreneurs must overcome.