How Effective Are Entrepreneurship Programs: Results from Rwanda
Rwanda's ambitious entrepreneurship program for secondary school teachers underwent a comprehensive evaluation.
In a recently released discussion paper (Unintended Consequences of Youth Entrepreneurship Programs: Experimental Evidence from Rwanda by Moussa P. Blimpo & Todd Pugatch), Rwanda's ambitious entrepreneurship program for secondary school teachers underwent a comprehensive evaluation. The paper primarily analyzed new pedagogical methods and entrepreneurship curricula, revealing both expected and unexpected outcomes.
Core Findings:
High attendance for teacher training was observed at 88%, which resulted in an evolution in teaching methods, aligning them with the new curriculum.
Surprisingly, despite this significant change in teaching methodologies, there was no observed improvement in students' school persistence, exam scores, skills, or aspirations.
Students in the program exhibited a 5% rise in entrepreneurship activities; however, employment dropped by an equivalent amount, keeping the overall economic activity unchanged.
Expert Predictions vs. Reality:
While experts had forecasted a dip in secondary school enrollment and a surge in exam scores and entrepreneurship, the results aligned only with the enrollment predictions.
Post-program Surveys & Insights:
Follow-up surveys conducted in 2019 and 2021 delved into recent academic and economic activities, spanning both pre- and post-COVID phases. Some noteworthy findings include:
There were no substantial differences in secondary school or technical/vocational education enrollment between the program participants and the control group.
Starting in 2020, university participation of the treated students rose by approximately 4%.
A momentary spike of 6% in entrepreneurship for the treated students was observed in 2019, which, however, vanished by 2020. Employment for these students also dwindled in the subsequent years.
There was a minor drop in secondary exam scores for treated students, with no significant shifts detected in non-cognitive skills, such as grit or creativity.
While 2019 witnessed a 6% increase in entrepreneurship activities for treated students, predominantly driven by student clubs and non-agricultural sectors, this surge was ephemeral, fading by 2021.
By 2021, a conspicuous decline in employment, wages, and income emerged for the treated students.
Preliminary analysis indicates the program might have pushed borderline students towards entrepreneurship, resulting in diminished income and profits for this cohort, especially by 2021.
Delving into the diverse backgrounds of students, the study found negligible variances based on gender, academic prowess, or socioeconomic background. However, a spike in university enrollment was predominantly noted among high-achieving students.
Bottom Line:
In essence, while the program did lead to a temporary boost in entrepreneurship activities, these gains waned over time. Meanwhile, negative repercussions emerged in employment and income after a 3-year duration. A silver lining was seen in the rise in university enrollment. The study hints at potential long-term advantages but underscores the absence of immediate economic improvements.