Complementing managerial capital with business information

A field experiment on international consulting for entrepreneurs in Uganda and Rwanda

 Kampala, Uganda. c. Weesam2010

Kampala, Uganda. c. Weesam2010

Professor N Vilcassim, London Business School

Start: Oct 2014  |  End: Oct 2017

Research Councils UK project page

This research project seeks to address a significant constraint to growth among businesses in developing countries: managerial capital.

Managerial capital refers to the capabilities and confidence associated with managing cash, customers, competition, capital and constraints within businesses (cf. Bruhn, Karlan and Schoar 2012). Improvements in managerial capital offer the possibility of improved growth and prosperity. However, there exists substantial evidence that it is not abundant among micro and small businesses.

In this research, we examine how managerial capital might help entrepreneurs in developing countries to transform their businesses: from micro-to small-sized enterprises and from small-to medium-sized enterprises. Despite the importance of this transformation for economic growth, few researchers so far have examined this phenomenon empirically.

The research seeks to address the limitations of prior work, by implementing a randomised-controlled trial (RCT) that focuses on a more homogeneous group of firms, uses a more intense intervention, provides consulting programs that focus on only one dimension of managerial capital per project, and improves access to business information.