Eventi del

8 2017 12:45 - 14:00
Meeting room 4.E4.SR03 ' Via Roentgen, 1

Practices vs. Pivots: The Impact of Skype-based Remote Coaching on Business Performance

NAUFEL J. VILCASSIM, London School of Economics and Political Science

While small and medium-sized enterprises are the backbone of developed economies, emerging markets around the world are characterised by millions of tiny businesses that do not grow into larger firms (Schoar 2010). In this study, we aim to contribute new insights into “what works” (and for whom) to stimulate small business growth in emerging markets. We use a randomized controlled trial (RCT) to evaluate the impact of an innovative business development program on small business growth in emerging markets: Grow Movement’s “international remote coaching” program. Grow Movement aims to stimulate business growth and social development by linking motivated, growth-potential entrepreneurs in Uganda with business professionals around the world who provide free, one-on-one coaching to entrepreneurs remotely via Skype, mobile phone and email. If shown to work, Grow Movement’s “international remote coaching” model could offer policy makers a cost-effective, scalable strategy for stimulating small business growth in emerging markets.

This study consists of four parts. First, we conducted a sample recruitment survey to identify 1,500 small business owners with the motivation and potential to grow their businesses. Between January and April 2015, entrepreneurs interested in receiving free coaching through Grow Movement “applied” for the programme by completing our 45-minute Growth Potential Index (GPI) screening survey. For each applicant, a GPI score was calculated based on the establishment of their business (e.g. start-up capital invested, number of employees, business location, keeping financial records) and the entrepreneur’s background and motivation (e.g. level of education, whether s/he had attended a business support programme before, experience in different business contexts). Respondents were then ranked from highest to lowest score, and the top 1,500 GPI scorers—that is, those displaying the highest motivation and potential to grow their businesses—were selected to participate in the study.

Next (in May-June 2015), we conducted a baseline survey to collect detailed data on business performance (sales, profits), business practices, the entrepreneur’s personality, and social outcomes for all entrepreneurs in our sample. Approximately 1,000 entrepreneurs completed a baseline survey. Third, these entrepreneurs were then randomly assigned into one of two experimental groups:

1. Group 1 (treatment group): 500 entrepreneurs were matched with an international consultant and offered 6 months’ of coaching via Skype, mobile phone and email; and
2. Group 2 (comparison group): 500 entrepreneurs formed a comparison group that did not receive any intervention during the course of the project.

Part four consists of follow-up data collection. The first follow-up survey was conducted between November and December 2016 (18 months after the baseline). The second and final follow-up survey will be conducted in July-August 2017 (24 months after the baseline) to allow us to determine whether improvements in business and social outcomes are sustained over time.

Through this study, we aim to address the following research questions:

1. Can higher growth-oriented entrepreneurs be identified and nurtured? What are the characteristics of these growth-oriented entrepreneurs? Does greater selectivity in the recruitment of candidates for business support programs offer greater potential for impact?
2. Will an international coaching program for micro- and small- entrepreneurs lead to increased economic outcomes (e.g. firm sales, profits, employees) and social outcomes (e.g. household investment in food, health, education)?
3. Through what mechanisms are improvements in firm performance effected? Are these dependent on the expertise of coaches, and the focus of the coaching (e.g. improving business practices vs. changing the strategic focus of the business)?