Digital Training for Micro-Entrepreneurs: Experimental Evidence from Guatemala

Abstract Previous literature shows minor impacts of in-person business training in developing countries, but few papers study the effectiveness of digital training. A research partnership with a multinational company operating in the food sector of Guatemala enables the randomized evaluation of a digital training program involving the franchise store owners of one of its retail chains. The training program combined a mobile app offering access to reproducible video capsules and virtual one-on-one consulting meetings. The results of the randomized evaluation reveal significant impacts on knowledge, business practices, sales, and profits. An examination of the mechanisms underlying these results reveals that consulting meetings are crucial in inducing engagement with the app’s content. Program flexibility, internet access, and initial sales are also crucial determinants of training effectiveness.