Last week I read an interesting article by Mirjam van Praag about training as development aid for entrepreneurs in Developing Countries. She describes an approach that combines microfinance for these entrepreneurs with training in business administration. This is not only lifting the success rate of the entrepreneurs, but it also reduces the risks for financials of offering microfinance to these entrepreneurs. And since microfinance have proven to be a succesfull means to fight poverty, adding training to the formula will make the success even bigger and more sustainable. Research by Karlan and Valdivia of Yale University has proven that the entrepreneurs that received training perform better. Striking is the fact that the entrepreneurs that were most sceptic about the training, had most benefit from it. The entrepreneurs received the training in 30-60 minute weekly sessions at their local Bank. They have discussions in entrepreneur communities and receive some homework. “With microfinance the coaching and guidance of entrepreneurs is just as important as the finance itself”, is a well-known phrase that proves to be right. This sounds like a good opportunity for e-learning as well!

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