The limited market size of many small emerging economies is a key constraint to the growth of innovative small and medium enterprises. Exporting offers a potential solution, but firms may struggle to locate and appeal to foreign buyers. A six-country randomized experiment was conducted with 225 firms in the Western Balkans to test the effectiveness of 30 hours of live group-based training and 5 hours of one-on-one remote consulting in overcoming these constraints. Treated firms used techniques such as search engine optimization and improved Facebook content to increase their digital presence and better reach foreign customers. A year later, positive and significant impacts are found on the number of customers, and a significant intensive margin increase in export sales. Qualitative interviews suggest this improvement came from a combination of sector-specific advice on market expansion, and through an encouragement effect which gave entrepreneurs the confidence to try new sales strategies.
Authors
- DOI
- https://dx.doi.org/10.1596/1813-9450-10256
- Disclosure Date
- 2022/12/07
- Disclosure Status
- Disclosed
- Doc Name
- Capacity Building as a Route to Export Market Expansion : A Six-Country Experiment in the Western Balkans∗
- Originating Unit
- Off of Sr VP Dev Econ/Chief Econ (DECVP)
- Published in
- United States of America
- Series Name
- Policy Research working paper ; no. WPS 10256;
- Unit Owning
- DECRG: Finance & Priv Sec Devt (DECFP)
- Version Type
- Final
- Volume No
- 1