The Impact Evaluation Business Training in Rural Area

Abstract

Lack of job opportunities in the city and recent growth in the rural area due to microfinance programs have increased the number of female entrepreneurs in the village regions of Indonesia. However, despite an abundance of natural resources, capital and workforce are not available to female entrepreneurs. Their business growth is still considered lacking or mediocre. Thus, a new approach is needed to improve their effectiveness in managing their newfound businesses. The effect of marginal impact by adding business training to certain groups of female entrepreneurs, including marketing and microentrepreneur management, will be measured using Microfinance Institutions (MFIs). Each treatment group will receive sixty-minute entrepreneurship training in each session for half a year from the MFIs. They also have to attend a monthly banking meeting over a period of one to two years. Control groups will go without these meetings and training sessions. They will still be involved in loan withdrawal and saving payments but not in meeting and training sessions. This study contributes to the literature to measure the best teaching methods in business training to improve small or micro enterprises in rural Indonesia. The benefits for people who live in rural areas is to eradicate poverty and encourage welfare for low-income economies. Within this, framework female entrepreneurs can increase their productivity in business, allowing them to purchase more nutritious food for their family, or send their children in higher education