Making Entrepreneurs: Returns to Training Youth in Hard Versus Soft Business Skills

We study the medium-term impacts of Skills for Effective Entrepreneurship Development (SEED) program, an innovative in-residence 3-week mini-MBA program high school students modeled after western business curricula and adapted to Ugandan context. The featured two separate treatments: hard-skills MBA features a mix approximately 75% hard skills 25% soft skills; curriculum has reverse mix. Using data on 4400 youth from nationally representative sample in 3-arm field experiment Uganda, 3.5 year follow-up demonstrated that training was effective improving both skills, but only were directly linked improvements self-efficacy, persuasion, negotiation. skill upgrade rewarded substantially higher earnings; 32.1% 29.8% increases earnings those who attended hard- soft-training, respectively, most which, generated through self-mployment. Furthermore, groups more likely start enterprises successful ensuring their businesses' survival. led significantly larger profits (24.2% 27.2% soft- treatment arms respectively) capital investments (38.4% 32.6% SEED soft, respectively). Both very cost-effective; months worth extra caused by alone would exceed cost program. These benefits abstract job- business-creation which substantial: relative control group, entrepreneurs created 985 additional jobs 550 new businesses. Institutional subscribers NBER working paper series, residents developing countries may download this without charge at www.nber.org.