Effect of framing on entrepreneurs’ participation in training programs: field experimental evidence

We investigate the effects of communication framing on necessity entrepreneurs’ participation in corporate-sponsored training programs. Necessity entrepreneurs (who start businesses for sustenance amidst a lack of alternative employment opportunities) play a critical role in alleviating poverty and fostering regional economic growth, especially in emerging economies. Companies often offer training programs to support these entrepreneurs as part of their corporate social responsibility (CSR) efforts. However, these programs frequently suffer from low participation, thus diminishing their potential to help the intended beneficiaries. Utilizing regulatory focus theory, we investigate whether promotion-framed messages (emphasizing growth and advancement) or prevention-framed messages (emphasizing security and safety) are more effective in encouraging participation. We conduct two randomized field experiments embedded in corporate-sponsored entrepreneurial training programs involving 5,773 necessity entrepreneurs in Peru. We find that promotion-framed messages lead to higher participation rates than prevention-framed messages. Our study contributes to the entrepreneurship literature by demonstrating how communication framing affects necessity entrepreneurs’ engagement with training programs. We also extend the CSR literature by showing that communication nudges based on regulatory focus can enhance beneficiary engagement. Additionally, our findings have practical implications for organizations designing training programs aimed at empowering necessity entrepreneurs.