Role of Technology in Entrepreneurship
Training: Evidence from HP LIFE Program
Dr. Elena Vinogradova
May 30, 2012
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.
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HP LIFE Ecosystem
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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.
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Evaluation questions
Outcome evaluation questions:
1. To what extent do graduates of the HP LIFE program
experience increased income and other benefits as a
result of the training?
2. To what extent do graduates of the HP LIFE program use
the ICT tools in their business, employment, or search
for employment?
3. To what extent did the ICT tools prove to be relevant to
the businesses the youth created or the employment
they found?
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Evaluation questions
Process evaluation questions:
1. 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?
2. How effective is the use of technology in
transferring skills and information to the youth
trainees?
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About the evaluation
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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
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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
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Online survey: countries
Countries (n=506)
35%
30.8%
30.8%
30%
25%
20%
14.4%
15%
13.4%
10.5%
10%
5%
0%
China
India
Kenya
Nigeria
South Africa
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Online survey: age
Age of Survey Respondents (N=486)
35%
32.3%
30%
27.8%
23.5%
25%
20%
15.8%
15%
10%
5%
0.6%
0%
less than 16
16 through 20
21 through 24
25 though 30
31 and older
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Online survey: gender
Gender (n=506)
Male
39.3%
Female
60.7%
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Online survey: education
Education level of respondents (n=504)
Completed college
46.4%
Some college
24.2%
Vocational training
5.6%
Completed secondary school
17.9%
Some secondary school
5.2%
Completed primary school
0.8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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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”
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Reported income increase
Increase in income as a result of HP LIFE training
35%
32.1%
30%
27.9%
25.0%
25.0%
25%
19.6%
20%
19.6%
15%
10%
5%
10.7%
8.9%
9.6%
6.6%
5.4%
3.7%
3.6%
2.2%
0%
decreased
did not change increased 15%
increased 6- increased 1110%
20%
Entrepreneurs (n=56)
increased
more than
20%
Employed (n=136)
not sure
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Improved business efficiency
Business improvements as a result of HP LIFE training (n=56)
80%
70%
47.5%
49.2%
49.2%
experienced
increase in use of
technology
39.3%
60%
50%
24.6%
not sure
40%
30%
20%
10.7%
10.7%
10.7%
10.7%
10.7%
10%
14.3%
14.3%
14.3%
14.3%
14.3%
expanded
funding options
improved
access to
markets
0%
greater
improved
efficiency of
accuracy of
operations record keeping
did not experience
increase in use of
teachnology
decreased
workload
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Use of ICT tools
Use of ICT tools by type
100%
58.8%
52.3%
32.7%
14.1%
12.1%
20.8%
13.1%
90%
80%
42.6%
70%
31.7%
60%
45.9%
50%
40%
16.1%
17.5%
30%
20%
27.6%
26.8%
17.5%
19.1%
10%
0%
32.2%
6.2%
3.9%
8.8%
telecommunication
tools (n=291)
text-processing
software
spreadsheets
(n=306)
don't use
monthly or more rarely
presentation
software (n=298)
weekly
databases (n=289)
daily
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Increase in ICT proficiency
Amount learned about the telecommunications tools from HP LIFE
program (n=165)
100%
5.5%
4.3%
4.7%
4.9%
60.4%
61.8%
90%
80%
70%
60%
50%
40%
30%
67.3%
70.1%
26.1%
25.6%
34.9%
33.3%
telecommunication tools
(n=165)
text processing software
(n=184)
spreadsheets (n=169)
presentations software
(n=144)
20%
10%
0%
little/some
quite a lot
all that I know
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ICT proficiency and income increase,
controlling for prior knowledge
Benefit
Correlation with income
increase for entrepreneurs
Correlation with income
increase for the employed
Text processing software
p=.361**
p=.374***
Spreadsheets
p=.696***
p=.217**
Presentations
p=.507***
p=.223**
Telecommunications tools
p=.374**
p=.227**
* significant at .05 level, one tail test
** significant at .01 level, one tail test
*** significant at .001 level, one tail test
NS: not significant
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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 textprocessing software and increase in proficiency
explained 13.3% of the variance in the reported
increased income variable among the employedd
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Other benefits of training
Perceptions of Software Knowledge as “Critically Important” to Business or Job
Success
21.2%
telecommunication tools
19.3%
8.4%
database software
13.1%
12.1%
13.0%
text processing software
7.5%
presentation software
11.7%
11.9%
10.2%
spreadsheet software
0%
Employed
5%
Entrepreneurs
10%
15%
20%
25%
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Other benefits of training
Benefits of HP LIFE training beyond ICT skills
68.3%
63.9%
new business ideas
54.2%
new business contacts
encouragement
52.5%
interaction with trainees
50.8%
63.9%
58.5%
57.7%
40.8%
42.6%
mentoring
4.2%
1.6%
other
0%
Employed (n=142)
10%
20%
30%
Entrepreneurs (n=61)
40%
50%
60%
70%
80%
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Training and income increase
Benefit
Correlation with income
increase for entrepreneurs
Correlation with income
increase for the employed
Encouragement
p=.335**
p=.158*
Mentoring
NS
p=.375***
Interaction with other
trainees
NS
p=.321***
* significant at .05 level, one tail test
** significant at .01 level, one tail test
*** significant at .001 level, one tail test
NS: not significant
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Training and income increase
Benefit
Correlation with income
increase for women
Correlation with income
increase for the men
Encouragement
NS
p=.370*
Mentoring
p=.275**
p=.331***
Interaction with other
trainees
NS
p=.353***
New business ideas
NS
p=.194*
* significant at .05 level, one tail test
** significant at .01 level, one tail test
*** significant at .001 level, one tail test
NS: not significant
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Skills that youth need
Other non-technology skills HP LIFE trainees would like to learn
management
56.3%
communication
53.2%
leadership skills
48.2%
public speaking
47.0%
networking
46.2%
team building
42.5%
marketing and sales
40.9%
conflict resolution
34.6%
0%
10%
20%
30%
40%
50%
60%
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Evaluation questions
Process evaluation questions:
1. How relevant do youth trainees find the LIFE
curriculum and supplemental online resources to
their needs for starting or strengthening a microbusiness or finding employment?
2. How effective is the use of technology in
transferring skills and information to the youth
trainees?
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Curriculum delivery
Experiential learning methodology
• Face-to-face instruction
• Off-line practical exercises on computers
• Supplemental online resources
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Relevance of the curriculum
Perceptions of relevance of HP LIFE training for the country-specific
needs of young people (n=404)
60%
53.2%
50%
40%
30%
22.8%
20.3%
20%
10%
2.2%
1.5%
0%
Not well
Some needs
addressed well
Most needs
addresses well
All needs addressed
well
not sure
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Modes of curriculum delivery
Perceptions of usefulness of different modes of the curriculum
delivery
100%
90%
79.5%
73.8%
41.2%
80%
70%
60%
31.0%
50%
40%
30%
10%
27.7%
22.6%
20%
20.5%
3.8%
0%
face-to-face interaction (n=399)
did not use
practical exercises using
computers (n=400)
not very useful
tips, blogs and other online
resources (n=393)
all/most was useful
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Online resources
Most useful features of HP LIFE online resources on
entrepreneurship (n=296)
Tips about marketing
67.6%
Tips about running a business
64.9%
Tips on using technology
62.2%
Success stories
47.6%
Blogs
31.8%
Online games
17.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
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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”
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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
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…from the cover page
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…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“.
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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.
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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
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