Improve MSME development Results through Better Entrepreneur Selection
- Donna Rosa
- Apr 13
- 3 min read
Updated: May 10
Most business support organizations in developing countries have some form of criteria to select entrepreneurs for coaching programs.
But sometimes I really wonder what they are.
I’ve worked with cohorts of entrepreneurs from a variety of industries and diverse backgrounds. Sometimes they’re at various stages in their businesses or have wildly differing skills levels, which gives me pause. Still, I can meet them where they are.
But what I can’t do much about is lack of passion and motivation, or if they’re just not cut out to be entrepreneurs. This is where careful selection and clear criteria are critical. Here are some things to keep in mind when putting together coaching cohorts.
entrepreneur selection guidelines
1. Establish clear criteria for program entry
Criteria can range from finances to industries to education level to business development stage, or anything else. They are an initial screener and allow the organization to focus.
2. Consider charging entrants a small entry fee if it makes sense.
The payment can serve to filter in the serious entrepreneurs, who will perceive the services as having value and will work hard to get maximum return on their investment. However, there are cases where charging is not appropriate, so evaluate the circumstances.
3. Group similar businesses together in each cohort
This can be done by location, size, industry, stage, etc. It will encourage and maximize peer learning and support. Be careful about putting competitors together, however. Participants should be able to share freely.
4. Conduct interviews or personalized testing
It's important to assess entrepreneurial traits such as willingness to learn and enthusiasm. Also evaluate basic skills:
communication skills
leadership ability
management style
adaptability
resilience
ability to listen and reason
This is probably the most difficult part of the selection process as it can be subjective, but it is the most important in predicting success in both the program and in the business itself.
5. Set and communicate clear expectations and success criteria, and then measure them
Selection doesn’t end at “yes.” Participants need to know what they’re committing to. Be explicit about:
attendance requirements
homework/assignments
participation expectations
what “success” looks like
what happens if they don’t participate (removal, replacement, no certificate)
6. Be inclusive, be very inclusive
Inclusion doesn’t mean lowering standards. It means removing unfair barriers so talent isn’t filtered out due to privilege.
consider non-traditional education backgrounds
allow oral interviews instead of written applications when appropriate
ensure women can participate (timing, childcare considerations, safety)
include entrepreneurs with disabilities via accessible formats
avoid “polished pitch” bias; good business owners may not be smooth presenters
7. evaluate
Obtain feedback from everyone involved, assess progress, and make changes as needed, based on learning. Which criteria predicted success well? Who surprised you (positively or negatively)? What did you miss?
Q&A
1) Why is selection so important in entrepreneurship programs?
A strong program is not about filling seats. Selection determines engagement, completion, and implementation. A great curriculum won’t fix a cohort of participants who won’t show up or do the work.
2) Isn’t strict selection unfair to poorer entrepreneurs?
Not if done correctly. Inclusion and standards can coexist. Select for readiness and commitment while removing biased barriers (like requiring polished applications).
3) Should programs prioritize high-growth startups or subsistence businesses?
It depends on objectives. But be clear: different business types require different support, timelines, and success metrics.
4) How can you assess motivation without being subjective?
Use structured interviews, micro-task tests, and scoring rubrics. Look for evidence of action and follow-through, not charisma.
5) Is an entry fee always a good idea?
Not always. It can improve commitment, but it can exclude. Use scholarships, sliding scales, or completion refunds, depending on context.
6) Should you group by industry or stage?
If possible, yes, especially by stage. Similar stages produce stronger peer learning. Industry grouping helps, but watch for competitor conflicts.
7) What are signs someone isn’t ready for a coaching program?
repeated missed meetings before the program starts
unwillingness to track any numbers
expectation of grants/handouts rather than learning
inability to commit the time at required. That doesn’t make them “bad.” It means the program may not fit right now.
8) What should you measure to evaluate selection quality?
attendance and completion rates
assignment completion rates
measurable business improvements
drop-off reasons
coach evaluations of cohort fit
Proper participant selection isn’t always easy, but it’s worth the time and effort. Think of it this way: the organization, the mentors, and the entrepreneurs are all making investments in each other to achieve a common goal. If there’s not a good fit it’s not a good ROI for anyone.
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