This is such an interesting study that I have been actually logging in to SSIR for the past few weeks to find out when the results will be published. It seems to suggest that micro loans - even if accompanied by advice - are not likely to produce any step change in performance, whereas decent business development services to small enterprises will yield good benefits. This is an important distinction, as too often it is the to the micro business sector that BDSP services are often directed (at the donor’s behest).
Will the full report be published? I cannot find it on the IPA website.
Dominic, you can find a working paper for the Mexico study on Dean’s Yale website at http://karlan.yale.edu/p/index.php under the title “The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico”. The Ghana study has not been written up yet in full—this was an early SSIR reader special! But you can look here for a little more info: http://www.poverty-action.org/project/0068.
I would caution against making too sweeping of a generalization based on the results of just these two studies: remember, the professional management consulting (or BDS) failed to be beneficial to the micro enterprises in Ghana. And the capital drop in Ghana is different from a loan (both in practice and psychologically to recipients). As Annie and Dean mention, two studies alone aren’t going to answer the questions in full: clearly we need to learn more about why these interventions seem to “work” in some contexts and not others.
What was the reasoning behind providing 50 minutes of consulting services with expected significant results in Ghana? This makes absolutely no sense to me; I would think if the program wanted to find real results, they would have focused on a smaller pool of microentrepreneurs, and worked closely with them as you would any consulting client, for a shorter period of time, e.g. 6 months. The findings in Ghana are not negative in my opinion because of the entrepreneurs themselves, but because of a badly design program. Any information on the design process would be appreciated.
Does the results from the study in Ghana points to the fact that management consultancy has not positive impact on small business growth?
I am also working on a project for find out “the impact of consultancy services on the growth of small business and entrepreneurs. I would be highly pleased if you can help me with any relevant information.
It was cool to learn about how helpful management consulting services can be. Thank you for explaining that these services can help small businesses and firms to grow. I hope that I can remember this article if I ever start up my own firm in the future.
Really I don’t have any clue about how consultancy help to grow my business but studying this blog I came to know many information’s thanks for it. Franchise Consultants in Hyderabad
The blog shows a clear difference in how consulting differs on geographical and cultural grounds. With changing demographics, the approach of consultancy must change. Thanks for the rich read. Btw, I have been working with Merino Services, a global software consulting & implementation firm
COMMENTS
BY Dominic Elson
ON June 4, 2012 03:24 AM
This is such an interesting study that I have been actually logging in to SSIR for the past few weeks to find out when the results will be published. It seems to suggest that micro loans - even if accompanied by advice - are not likely to produce any step change in performance, whereas decent business development services to small enterprises will yield good benefits. This is an important distinction, as too often it is the to the micro business sector that BDSP services are often directed (at the donor’s behest).
Will the full report be published? I cannot find it on the IPA website.
BY Justin Oliver
ON June 7, 2012 05:11 PM
Dominic, you can find a working paper for the Mexico study on Dean’s Yale website at http://karlan.yale.edu/p/index.php under the title “The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico”. The Ghana study has not been written up yet in full—this was an early SSIR reader special! But you can look here for a little more info: http://www.poverty-action.org/project/0068.
I would caution against making too sweeping of a generalization based on the results of just these two studies: remember, the professional management consulting (or BDS) failed to be beneficial to the micro enterprises in Ghana. And the capital drop in Ghana is different from a loan (both in practice and psychologically to recipients). As Annie and Dean mention, two studies alone aren’t going to answer the questions in full: clearly we need to learn more about why these interventions seem to “work” in some contexts and not others.
Justin Oliver
IPA
BY Fanele Chester
ON June 26, 2012 05:57 AM
What was the reasoning behind providing 50 minutes of consulting services with expected significant results in Ghana? This makes absolutely no sense to me; I would think if the program wanted to find real results, they would have focused on a smaller pool of microentrepreneurs, and worked closely with them as you would any consulting client, for a shorter period of time, e.g. 6 months. The findings in Ghana are not negative in my opinion because of the entrepreneurs themselves, but because of a badly design program. Any information on the design process would be appreciated.
BY Abraham K. Amoako
ON May 22, 2013 03:20 PM
Does the results from the study in Ghana points to the fact that management consultancy has not positive impact on small business growth?
I am also working on a project for find out “the impact of consultancy services on the growth of small business and entrepreneurs. I would be highly pleased if you can help me with any relevant information.
BY Rockford Johnson
ON September 27, 2016 06:06 AM
It was cool to learn about how helpful management consulting services can be. Thank you for explaining that these services can help small businesses and firms to grow. I hope that I can remember this article if I ever start up my own firm in the future.
BY business consultancy
ON December 11, 2017 02:16 AM
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ON December 4, 2018 05:12 AM
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BY Ajith
ON December 4, 2018 10:04 PM
Really I don’t have any clue about how consultancy help to grow my business but studying this blog I came to know many information’s thanks for it.
Franchise Consultants in Hyderabad
BY Kavya Joshi
ON November 18, 2019 08:45 PM
The blog shows a clear difference in how consulting differs on geographical and cultural grounds. With changing demographics, the approach of consultancy must change. Thanks for the rich read. Btw, I have been working with Merino Services, a global software consulting & implementation firm