Trade & Travel Journal | Training helps entrepreneurs achieve 72% increase in revenue growth, new research finds | SINGAPORE, July 18, 2022 /PRNewswire/ — New research by academics from leading business schools Singapore Management University (SMU), INSEAD and HEC Paris demonstrate how growth training helps entrepreneurs achieve increased revenues for their ventures. This research project, developed by Prof Reddi Kotha (SMU), Prof Bala Vissa (INSEAD), Yimin Lin (SMU) and Prof Anne Valerie Corboz (HEC Paris), was funded by the Singapore government’s Ministry of Education research grant.
According to the research paper, titled “Do Ambitious Entrepreneurs Benefit More from Training?”, training in growth-catalyst tools helped entrepreneurs achieve a 72% increase in their ventures’ revenues; which is about 40% more than entrepreneurs who did not receive such training. Additionally, the paper also showed that ventures led by entrepreneurs with more ambitious growth expectations experienced revenue growth of about 100% compared to 10% for those who had not received training.
Research findings are based on an extensive field experiment involving interactive training sessions, workshops and personalised coaching which was delivered to 103 Singapore-based entrepreneurs, out of the 181 entrepreneurs participating in the study (the remaining 78 made up the study’s control group). The entrepreneurs, who were running new ventures, received training in three specific areas, or growth-catalyst tools, relevant for formulating and executing innovation-led growth: business-model design, leveraging external networks, and building internal teams.
The paper, which is forthcoming in Strategic Management Journal, also looked at other success measures like a venture’s “survival rate,” in other words, the likelihood that a start-up will survive. According to the study’s findings, ventures whose founders attended had a survival rate of 50 percent against the 36 percent survival rate of ventures led by entrepreneurs who had not been trained in growth-catalyst tools.
Surprisingly, previous research on the impact of training on entrepreneurs and their ventures had provided mixed results – a few studies did find a positive impact of training whilst many others failed to do so. The authors of this study suggested that the prior mixed findings are a reflection of at least two factors: (i) many prior studies were conducted in emerging economies where entrepreneurship is often necessity-based; (ii) entrepreneurs with diverse growth ambitions may have been lumped into the same training intervention with narrower content.
Prof Vissa comments, “our research suggests that perhaps training interventions for entrepreneurship in mature market economies need to be tailored differently for entrepreneurs who value growth versus those who value autonomy or control”.
The authors of the study argue that their findings can support policymakers when designing initiatives to support entrepreneurs. “Fast-growing new ventures founded by opportunity-seeking entrepreneurs benefit society because they are key sources of jobs and innovation that boost economic prosperity,” says Prof. Corboz, citing business and management experts.
“We hope our work encourages new research on entrepreneur training and inform policymakers to draw new plans to help entrepreneurs, as they are key drivers of economic growth,” adds Prof Kotha.
About HEC Paris
Founded in 1881, HEC Paris is a leading European Business School. Its ambition is to positively impact both businesses and society thanks to its three-pronged approach “Think, Teach, Act” and thus to contribute to a more inclusive, sustainable and prosperous world.
With 160 research professors from all around the world producing and teaching unique knowledge to more than 4,500 students from 110 different countries, the HEC Paris campus serves as a real laboratory for innovation and exchange which is open to the world’s diversity and challenges.
Inspired by its 5 core values – Excellence, Curiosity, Entrepreneurial spirit, Diversity and Responsibility – HEC Paris offers a complete range of training courses for the leaders of tomorrow: the Pre-Experience Program, specialized masters, MSc, the Summer School, the MBA, the Executive MBA, the TRIUM Global Executive MBA, the PhD, as well as a wide variety of programs targeted to leaders and managers.
About INSEAD, The Business School for the World
As one of the world’s leading and largest graduate business schools, INSEAD brings together people, cultures and ideas to develop responsible leaders who transform business and society. Our research, teaching and partnerships reflect this global perspective and cultural diversity.
With locations in Europe (France), Asia (Singapore), the Middle East (Abu Dhabi), and now North America (San Francisco), INSEAD’s business education and research spans four regions. Our 165 renowned Faculty members from 42 countries inspire more than 1,500 degree participants annually in our Master in Management, MBA, Global Executive MBA, Specialised Master’s degrees (Executive Master in Finance and Executive Master in Change) and PhD programmes. In addition, more than 11,000 executives participate in INSEAD Executive Education programmes each year.
INSEAD continues to conduct cutting-edge research and innovate across all our programmes. We provide business leaders with the knowledge and awareness to operate anywhere. Our core values drive academic excellence and serve the global community as The Business School for the World.
About Singapore Management University
Established in 2000, Singapore Management University (SMU) is recognised for its disciplinary and multi-disciplinary research that address issues of global relevance, impacting business, government, and society. Its distinctive education, incorporating innovative experiential learning, aims to nurture global citizens, entrepreneurs and change agents. With more than 12,000 students, SMU offers a wide range of bachelors, masters and PhD degree programmes in the disciplinary areas associated with six of its seven schools – Accountancy, Business, Economics, Computing, Law and Social Sciences. Its seventh school, the SMU College of Integrative Studies, offers a bachelor’s degree programme in deep, integrative interdisciplinary education. SMU also offers a growing number of executive development and continuing education programmes. Through its city campus, SMU focuses on making meaningful impact on Singapore and beyond through its partnerships with industry, policy makers and academic institutions. www.smu.edu.sg