Digital Training Falls Short for Women Entrepreneurs, Says World Bank Study

A new study from the World Bank’s Africa Gender Innovation Lab (GIL), in collaboration with Ethiopia’s Women Entrepreneurship Development Project (WEDP) and the Entrepreneurship Development Institute (EDI), explores the promises and pitfalls of digital business training. The study was authored by Tsedey Asheber, Rachel Cassidy, Menaal Ebrahim, Diego Ubfal, and Toni Weis. The research tested whether app-based training could match or surpass traditional classroom training in improving business outcomes for 2,000 growth-oriented women entrepreneurs in Addis Ababa. These participants, all smartphone users, represented a digitally connected segment of small business owners in a low-income urban setting. Despite digital training’s theoretical advantages, scalability, cost-efficiency, and flexibility for women with time and mobility constraints, the study delivers a cautionary tale on the limits of e-learning in real-world development contexts.

Similar Curricula, Different Realities

The researchers partnered with a mobile education technology provider to create a localized app featuring eleven self-paced modules derived from U.S. MBA preparatory content. These covered core business topics such as entrepreneurship fundamentals, marketing strategies, and basic accounting. The digital training was designed to be interactive, incorporating quizzes and case studies to promote engagement. Meanwhile, the in-person training offered the same content through structured sessions that included group exercises, brainstorming activities, and role-playing. Both formats were carefully aligned in substance but diverged in their delivery approach.

Participants were selected from WEDP’s registry of over 40,000 women business owners, with 4,000 meeting eligibility criteria that included having internet access, a high school education, and a small business employing fewer than 30 people. Of these, 2,000 women were randomly assigned to four groups: in-person training, app-based training, app-based training with access to virtual peer networking, and a control group receiving no training. Follow-up surveys were conducted six months after training to assess outcomes.

Engagement Tells a Tale of Two Approaches

Initial enthusiasm was high: over 75 percent of participants in both the digital and classroom-based groups began their respective trainings. However, the two formats quickly diverged in terms of sustained engagement. In the in-person cohort, 71 percent completed at least eight sessions, the benchmark for graduation and certification. In contrast, only 22 percent of app users completed a similar number of modules. Most digital learners dropped off after one to three modules, even when prompted with weekly reminders and modest cash prizes.

This stark contrast in engagement appears to stem from what the study terms a “lock-in effect” associated with in-person learning. Scheduled class times, social accountability, and the effort involved in attending sessions helped keep learners on track. Meanwhile, app users lacked that external structure and were more prone to early dropout. Despite offering convenience, the digital approach struggled to compete with the immersive, community-oriented nature of classroom learning.

Outcomes Show No Business Boost

Crucially, the differing levels of engagement did not translate into divergent business results. Across both training modalities, participants showed no significant changes in business survival, revenues, profits, or operational practices. The average gain in business knowledge was modest, around five percent, and did not significantly differ between digital and in-person learners. These findings held even for women with higher education, better digital skills, or more established businesses at the outset.

This outcome challenges the prevailing assumption that better knowledge necessarily leads to better performance. In reality, women entrepreneurs in low-income settings face a tangle of structural barriers, from restricted access to finance and markets to caregiving responsibilities and entrenched social norms, that training alone cannot overcome. The study reaffirms that business education, no matter how well-designed, is not a silver bullet.

Rethinking Digital Training: Policy and Design Lessons

The study also dispels some myths about the cost-effectiveness of digital learning. While average per-participant costs were lower for app-based training ($278 compared to $521 for in-person), the difference shrank dramatically when factoring in the need for in-person onboarding. A supplementary test revealed that without face-to-face assistance, app engagement collapsed: only 10 percent completed one module, and a mere 3 percent completed eight. This finding underscores the importance of hands-on support in overcoming digital literacy barriers.

To make digital training more effective, the authors suggest integrating gamification elements like point systems, badges, or leaderboards to create motivation. Social commitment mechanisms, such as peer pledges or buddy systems, may help replicate the accountability of classroom settings. However, efforts to introduce virtual group chats failed to boost engagement, hampered by both regulatory restrictions and a lack of interest among participants.

Ultimately, the report recommends a “tech-plus-touch” model, where digital content is supported by physical interactions like onboarding sessions, helplines, and regular check-ins. This hybrid approach acknowledges that simply having access to technology does not guarantee its effective use, especially in underserved communities.

The Bigger Picture: Training Needs More Than Tech

Perhaps the most profound takeaway from the study is that business training, whether digital or in-person, is unlikely to transform women-led enterprises in isolation. Without tackling underlying structural issues such as unequal access to resources, rigid social norms, and caregiving burdens, the effectiveness of any training initiative will remain limited. The real challenge lies in designing integrated interventions that combine education with financing, mentorship, and market linkages.

For governments and development organizations eager to harness technology for empowerment, this study provides a timely reality check. It emphasizes the need for thoughtful implementation, continuous support, and a recognition that digital solutions must be grounded in human realities. Only then can the full potential of technology be unlocked to drive women’s economic inclusion at scale.