Policy Insights in Firms
J-PAL’s Firms sector seeks to understand how to best help firms grow, and the impact of firms on workers’ wellbeing in and out of the workplace. Our policy insights below summarize general lessons from randomized evaluations on business skills training and consulting programs, and programs that aim to encourage the registration of informal firms.
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David Atkin (Massachusetts Institute of Technology) and Jing Cai (University of Maryland), Firms Co-Chairs
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Market access: Connecting firms and entrepreneurs to markets to spur business and job growth
Last updated: September 2024
Improved access to markets has often helped small firms in low- and middle-income countries grow by boosting firm revenues and profits. These interventions have been effective because they have led to new sales, helped firms connect with new types of buyers, and increased information sharing and...
Encouraging micro and small enterprises to formalize
Last updated: July 2022
Informal firms are defined as those that operate outside of the legal and regulatory system and are therefore not registered for the required business operating licenses. Operating formally may allow firms to grow by expanding their customer base, paying fewer fines, and gaining access to more...
Business Training and Consulting Management practices are thought to play an important role in firm growth, and giving firm owners access to subsidized business training services and consulting could be one way to support their growth. Business training programs tend to teach standard best practices in a classroom setting, such as record keeping and conducting market research, while consultants work closely with firms to identify areas for potential improvement and to support the implementation of recommended actions.
Teaching business skills to support microentrepreneurs
Last updated: September 2023
Traditional business skills training programs lead to modest increases in microentrepreneurs’ profits and sales. Alternative training programs can lead to larger impacts, but some programs require more definitive evidence of their effectiveness.
Supporting firm growth through consulting and business training
Last updated: December 2019
Economists have long identified large differences in productivity between countries and between firms. One potential explanation for the persistent gap is that some firms have better management practices than others.