Rethinking Business Training: Digital Challenges and In-Person Advantages for Women

A World Bank study comparing app-based and in-person training for women entrepreneurs in Ethiopia found high initial engagement but low digital completion rates, with neither method significantly improving business outcomes. The findings highlight the need for tailored approaches that address structural barriers and enhance user engagement.

A groundbreaking study by the World Bank’s Gender Innovation Lab, led by researchers Rachel Cassidy, Menaal Ebrahim, and Diego Ubfal, explored the effectiveness of digital and in-person training for women entrepreneurs in Ethiopia. This initiative, part of the World Bank’s broader agenda to enhance economic opportunities for women, tested a smartphone app-based training program against traditional in-person sessions to determine their relative impact. The study, which targeted 2,000 growth-oriented women entrepreneurs in Addis Ababa, sheds light on the challenges and opportunities of using technology to scale business training. The findings emphasize the potential of digital tools but also caution against assuming that technology alone can overcome entrenched barriers.

High Engagement but Low Digital Completion Rates

The randomized controlled trial revealed high initial uptake for both training formats, with over 75% of participants starting the courses. However, the app-based training had significantly lower completion rates, with only 22% of participants completing the minimum requirement of eight modules, compared to 71% for in-person training. The app offered flexibility and gamified content tailored to the Ethiopian context, but it struggled to maintain participant engagement. Challenges included limited digital literacy, technical difficulties, and time constraints, with many participants citing a lack of time as a major barrier. Despite offering offline functionality, weekly reminders, and incentives such as cash-prize lotteries, the app failed to sustain consistent engagement. The in-person training, by contrast, benefited from structured schedules and group interactions, which appeared to foster accountability and commitment.

Modest Knowledge Gains but Minimal Business Impact

Both training formats led to modest improvements in business knowledge, as measured by a standardized test. However, neither modality had a significant impact on business practices or performance six months after completion. This finding aligns with existing research indicating that business training programs often yield limited results, particularly for women entrepreneurs in low-income settings. The targeted approach of this study, which focused on women with at least secondary education and access to smartphones, did not translate into measurable changes in business outcomes. Researchers suggest that systemic barriers, such as time poverty and limited access to resources, may prevent women from fully implementing what they learn. Even with advanced training content and high completion rates in the in-person sessions, these deeper structural issues remained unaddressed.

Balancing Cost Efficiency and Effectiveness

A cost analysis highlighted the financial implications of each training modality. The app-based training costs 278 dollars per participant, while in-person training costs 511 dollars. While the digital option appeared more cost-efficient, the low completion rates undermined its overall effectiveness. Additionally, the app’s reliance on in-person onboarding sessions to familiarize participants with its use increased costs, challenging the scalability argument. The researchers noted that digital training’s cost advantage lies in its ability to add users at minimal marginal expense, but this potential is unrealized without mechanisms to ensure sustained engagement. The study also underscored the importance of robust gamification features such as point systems, competition, and daily streak incentives to enhance user retention and completion rates in digital programs.

Lessons for Policymakers and Practitioners

The study offers critical lessons for policymakers and practitioners designing interventions for women entrepreneurs. It highlights the limitations of digital solutions as standalone tools, emphasizing the need to address broader socio-cultural and structural constraints. For example, many participants faced challenges related to unpaid care responsibilities and limited mobility, which hindered their ability to complete training. The in-person sessions acted as a stronger commitment device, leveraging structured schedules and peer support to drive higher engagement. These findings suggest that effective training programs must integrate digital and traditional elements, tailored to the specific needs of the target population. Additionally, improving digital literacy and confidence among participants is essential for the success of app-based interventions.

Rethinking Training for Women Entrepreneurs

The broader implications of this study extend beyond the comparison of training modalities. It calls into question the effectiveness of traditional business training programs for women entrepreneurs in low-income settings. Despite high participation rates in the in-person sessions, the lack of impact on business outcomes suggests a need to rethink training content and delivery. Researchers propose that more tailored approaches, addressing the unique challenges faced by women entrepreneurs, may yield better results. These could include integrating access to financing, mentorship, and networks into training programs. Furthermore, enhancing the socio-economic environment through policies that promote gender equality and reduce time poverty could help women entrepreneurs better leverage training opportunities.

This study, funded by Global Affairs Canada and the Umbrella Fund for Gender Equality, underscores the importance of rigorous evaluation in development interventions. By testing the relative effectiveness of digital and in-person training, it provides valuable insights for designing programs that balance cost, accessibility, and impact. While digital tools hold promise for scaling interventions, their success depends on overcoming significant hurdles, including user engagement and contextual adaptation. Ultimately, this research highlights that technology alone cannot address the complex challenges faced by women entrepreneurs. A holistic approach, combining innovative tools with supportive policies and resources, is essential to achieving meaningful progress in women’s economic empowerment.