Peer-Accompanied Business Training
RCTClinical Trial
Women micro-entrepreneurs face social isolation and social constraints that limit the adoption of business skills, creating a persistent gender gap in entrepreneurial performance.
Picture this
Imagine learning to drive a car alone versus having a supportive friend in the passenger seat encouraging you to take the wheel. Attending business training with a peer creates a shared support system that gives individuals the confidence and mutual accountability needed to set ambitious financial goals and take calculated financial risks like applying for business growth loans.
What the evidence says
Women trained with a friend were 7 percentage points (117 percent) more likely to take a business loan within four months and 4 percentage points (40 percent) less likely to report their occupation as housewife compared to the control group, accompanied by higher household income and sales expansion. Solo-trained women showed no significant increase in borrowing or sales.
- Who was studied
- N = 636 women aged 18–50, female clients of SEWA Bank in Ahmedabad, India.
- How
- Randomized Controlled Trial (RCT) assigning women to peer-invited training (1/3), solo-invited training (1/3), or non-invited control (1/3).
What to do
Structure business and financial literacy programs so that participants register and attend all training modules alongside a peer or social contact rather than individually.
From the source
"Women trained with a friend doubled their demand for loans and expanded their business activity, resulting in higher household income."
Business Training for Women in Ahmedabad India.pdf