Dr. Elena Vinogradova May 30, 2012

1. Role of Technology in Entrepreneurship Training: Evidence from HP LIFE Program Dr. Elena Vinogradova May 30, 2012

2. About the program • Hewlett-Packard Learning Initiative for Entrepreneurs (HP LIFE) • LIFE* curriculum = ICT skills + business skills • Experiential learning methodology • 340 centers in 49 countries across the globe; reached 1.2 million people with face-to-face training, access to IT and online activities since 2007 * The LIFE Curriculum was developed by Micro-Enterprise Acceleration Institute (MEA-I) in partnership with Hewlett-Packard.

4. HP LIFE Ecosystem

5. Evaluation framework The evaluation tested two assumptions: Assumption 1: Increased application of ICT tools or software leads to improved employment and entrepreneurship outcomes among disadvantaged youth in developing countries. Assumption 2: Technology-based tools, such as online training content and/or games, increase the program’s effectiveness.

6. Evaluation questions Outcome evaluation questions: • To what extent do graduates of the HP LIFE program experience increased income and other benefits as a result of the training? • To what extent do graduates of the HP LIFE program use the ICT tools in their business, employment, or search for employment? • To what extent did the ICT tools prove to be relevant to the businesses the youth created or the employment they found?

7. Evaluation questions Process evaluation questions: • How relevant do youth trainees find the LIFE curriculum and online tools to their needs for starting or strengthening a micro-business or finding employment? • How effective is the use of technology in transferring skills and information to the youth trainees?

8. About the evaluation • November 2011 through April 2012 • Retrospective baseline • China, India, Kenya, Nigeria and South Africa • Mixed methods: online survey + interviews and focus groups • 506 completed online surveys • 3 FGs with current participants, 8 interviews with trainers and 18 interviews with past participants

9. Limitations • Self-selected sample (not representative) • Non-experimental study: attribution limitations • Modular curriculum, sometimes implemented with other training modules • Online component is fast evolving, some findings could be outdated

10. Online survey: countries

11. Online survey: age

12. Online survey: gender

13. Online survey: education

14. Outcome evaluation findings 1. Program is benefiting trainees in multiple ways: • Majority reported small to moderate income increase • One in five entrepreneurs over 20% income increase • Improved business efficiency • Increase in ICT proficiency and use of technology • Improvements in “soft” skills (e.g., communication, customer relations) and in self-confidence 2. Vast majority use basic features of ICT for job or business 3. ICT is relevant although not always “critically important”

15. Reported income increase

16. Improved business efficiency

17. Use of ICT tools

18. Increase in ICT proficiency

19. ICT proficiency and income increase, controlling for prior knowledge * significant at .05 level, one tail test ** significant at .01 level, one tail test *** significant at .001 level, one tail test NS: not significant

20. ICT proficiency and income increase Linear Regression Model • Interaction term of prior knowledge of spreadsheets and increased proficiency explained 47.4% of the variance in the reported increased income variable among entrepreneurs • Interaction term of prior knowledge of text-processing software and increase in proficiency explained 13.3% of the variance in the reported increased income variable among the employedd

21. Other benefits of training

22. Other benefits of training

23. Training and income increase * significant at .05 level, one tail test ** significant at .01 level, one tail test *** significant at .001 level, one tail test NS: not significant

24. Training and income increase * significant at .05 level, one tail test ** significant at .01 level, one tail test *** significant at .001 level, one tail test NS: not significant

25. Skills that youth need

26. Evaluation questions Process evaluation questions: • How relevant do youth trainees find the LIFE curriculum and supplemental online resources to their needs for starting or strengthening a micro-business or finding employment? • How effective is the use of technology in transferring skills and information to the youth trainees?

27. Curriculum delivery Experiential learning methodology • Face-to-face instruction • Off-line practical exercises on computers • Supplemental online resources

28. Relevance of the curriculum

29. Modes of curriculum delivery

30. Online resources

31. Conclusions • LIFE curriculum found to be effective in improving youth outcomes in developing countries • ICT useful and correlates with income increase • Mentoring and encouragement found to correlate with reported income increase • Communication skills reported very important • Technology plays an important role but not necessarily “critically important”

32. Conclusions (cont.) • LIFE curriculum found to be relevant for youth in developing countries • Emphasis on ICT • BTB model • Technology can play a very important role if adapted to the local context and infrastructure • Follow-up support (“bridging services”) is missing

33. …from the cover page

34. …from the cover page Rachel is 33 years old and lives in Nigeria. After participating in HP LIFE training, Rachel started her "Bridge Farm" with a farm house, chicken pens, offices and storage. "I was unemployed and looking for a job for nearly two years. It was a difficult time," says Rachel. "But through the HP LIFE training, I learnt a lot and became more focused on my business vision. I can now communicate effectively with people, and acquire skills and knowledge from my colleagues and other experts. The training taught me how to run my day-to-day business activities regarding operation and management. I now use Microsoft Outlook for scheduling appointments and creating my client contacts. The communication skills have helped me to become a better salesperson and to expand my business contacts“.

35. Bridge Farm - a Source of Healthy Food and Job Opportunities The farm now has 242 birds ready for the market. In the future, she hopes to extend into fish breeding, snail farming and animal product processing and storage. Today, Bridge Farm is not only a source of healthy food but also provides job opportunities for a community that badly needs both. But it is more than that; it is an inspiration for many.

36. Implications for future entrepreneurship programming • ICTs are relevant for entrepreneurs • Purposeful integration of soft skills is helpful • Importance of “bridging services” and mentorship, particularly for female youth • Experiential learning methodology • Face-to-face mode of delivery with computer support– what are implications for scaling? • Online content delivery may only be effective in contexts with adequate ICT infrastructure