top of page
Search

How to Improve MSME Results Through Better Entrepreneur Selection

  • Donna Rosa
  • Apr 13
  • 13 min read

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.


How to Improve MSME Results Through Better Entrepreneur Selection

I’ve worked with cohorts of entrepreneurs from a variety of industries and diverse backgrounds. It’s workable, sometimes it’s even beneficial. People learn from each other across sectors, and a good coach can meet entrepreneurs where they are.


What’s harder to work with is something you can’t “train into” people in a few weeks:


  • lack of motivation

  • lack of follow-through

  • participation because the program is free (not because the entrepreneur is serious)

  • entrepreneurs who simply aren’t in a position to act on what they learn right now


This is where careful selection and clear criteria become critical.


Because when selection is weak, everything downstream suffers:


  • the coach spends time dragging participants

  • serious entrepreneurs get frustrated

  • outcomes are diluted

  • donors/implementers report “numbers reached” but see weak business results


Proper selection isn’t a gatekeeping exercise. It’s a performance and impact issue.


Why selection is the hidden lever in entrepreneurship support

Entrepreneurship programs often focus on curriculum design, facilitator quality, tools, and funding models.


All important.


But selection is the lever that determines whether any of those inputs turn into outcomes.


Strong selection improves:

  • cohort energy and engagement

  • peer learning value (people can relate to each other’s challenges)

  • completion rates

  • implementation rates (homework actually gets done)

  • measurable business improvements (margin, cash flow, customers, stability)


Weak selection produces:

  • high drop-off and low participation

  • “passive” cohorts where a few do the work and others watch

  • inflated success stories that aren’t representative

  • wasted resources and low ROI for everyone involved


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 return on investment (ROI) for anyone.


What selection should actually accomplish (not just “who qualifies”)


A good selection process should do three things:


1) Confirm eligibility

Does this person meet the baseline conditions needed to benefit?


2) Predict follow-through

Will they show up, do the work, and apply it?


3) Create a cohort that supports learning

Are participants grouped in a way that makes peer learning real rather than awkward or irrelevant?


If your selection process only checks eligibility but can’t predict follow-through, your program becomes a motivational experiment, not a business support intervention.


Common mistakes organizations make when selecting entrepreneurs

If you’re running entrepreneurship support programs in developing countries, these are patterns worth avoiding.


Mistake #1: Selecting based on paperwork, not behavior

Many programs rely heavily on applications that can be exaggerated (or coached).


Paperwork doesn’t tell you:


  • who will execute

  • who will implement changes

  • who will do the hard parts (recordkeeping, pricing discipline, customer follow-up)


Fix: move from “paper qualifications” to behavior signals (see interview section below).


Mistake #2: Selecting for “need” without selecting for readiness

Need matters. But readiness matters too.


If someone is in survival mode, health crisis, unstable housing, severe insecurity, they may not be able to focus on business execution even if they want to.


Fix: include a readiness screen and offer a referral path (e.g., “come back next cohort”) instead of forcing a bad fit.


Mistake #3: Mixing stages too broadly

A pre-revenue startup and a five-year operating business don’t need the same coaching.


A cohort where one person is learning pricing for the first time and another is working on expansion strategy can be managed by a strong coach, but it’s harder to create shared momentum.


Fix: segment cohorts by stage first, then by sector when possible.


Mistake #4: Confusing inclusion with absence of standards

Inclusion is essential. But inclusion without standards is how serious entrepreneurs get punished with low-quality cohorts.


You can be inclusive and still have real criteria.


Fix: remove biased barriers (polished pitch bias, education gatekeeping) while keeping standards that predict follow-through.


Mistake #5: Pretending “selection” ends when someone is accepted

Most programs select, accept, and then hope for the best.


But real selection has two phases:


  • Entry selection (who gets in)

  • Early verification (who stays in after week 1–2 based on behavior)


Fix: use a “probation period” with clear expectations and a replacement list.



The selection funnel (a model that works)

If you want a repeatable process that improves results, use a simple funnel:


Step 1: Minimum eligibility screen (fast)

Goal: filter out obvious mismatches.


Examples:


  • can attend sessions

  • has a business or credible launch plan

  • has basic access needs met (phone/internet if remote)

  • agrees to program rules


Step 2: Readiness + traits screen (interview + simple test)

Goal: predict follow-through and learning mindset.


Step 3: Cohort fit (grouping + conflict checks)

Goal: maximize peer learning and reduce friction.


Step 4: Week 1–2 verification (behavior-based)

Goal: confirm seriousness using actual attendance + homework completion.


This is how you stop wasting resources on “random participants.”



Selection criteria: what to consider (and how to structure it)

Below are the key elements to keep in mind when building coaching cohorts.





1) Establish clear criteria for program entry

Criteria should be explicit and defensible. They can include:


  • business stage (idea stage, early revenue, growth stage)

  • sector focus (or “open” with rationale)

  • geography (for logistics/support relevance)

  • baseline literacy/numeracy requirements (depending on program design)

  • ability to attend sessions consistently

  • proof of business activity (if required)


Tip: write your criteria as a short checklist. If it’s vague, selection becomes inconsistent and political.


Make criteria visible (and enforce them)

A surprising number of programs keep criteria “flexible,” then pressure staff to accept people who don’t fit. That’s how cohorts get diluted.


If criteria matter, they must be enforceable.



2) Consider charging a small entry fee (when appropriate)

A small fee can be useful, not because it makes money, but because it filters in serious participants.


When entrepreneurs pay even a modest amount, they’re more likely to:


  • show up

  • complete assignments

  • apply the tools

  • treat coaching like a real asset


However, there are cases where charging is not appropriate, so evaluate circumstances carefully.


When a fee can work well

  • market-based entrepreneurship programs

  • cohorts where businesses already have some revenue

  • programs aiming for high accountability and completion


When a fee may be inappropriate

  • extreme poverty or humanitarian contexts

  • displaced populations

  • when participation already has hidden costs (travel, data, childcare)


Best practice: if you charge a fee, consider:


  • sliding scale

  • scholarships

  • a completion refund (powerful incentive without excluding people)



3) Group similar businesses together to maximize peer learning

If possible, group businesses by:


  • size

  • stage

  • sector

  • business model type (retail vs service vs production)


This improves peer learning because participants share:


  • similar cash flow cycles

  • similar operational challenges

  • comparable customer behavior


A caution on competitors

Be careful about putting direct competitors together, especially in small markets. Competition can reduce trust and openness.


If you must include competitors:


  • set confidentiality expectations

  • avoid forcing them to share sensitive supplier/customer data

  • focus on general skill-building rather than proprietary details



4) Conduct interviews or testing to assess entrepreneurial traits

This is the most difficult part because it can be subjective, but it’s also the most predictive.


You’re assessing traits like:


  • willingness to learn

  • enthusiasm and drive

  • communication skills

  • basic financial literacy (or openness to learning it)

  • leadership and management characteristics

  • adaptability and resilience

  • ability to listen and reason

  • emotional intelligence


A structured interview format (repeatable and fair)

To reduce subjectivity, use the same questions for everyone and score with a rubric.


Ask:


  • “Why this business, why do you care?”

  • “Tell me about a recent business problem. What did you do?”

  • “What’s one thing you tried that didn’t work, and what did you change?”

  • “How do you track money coming in and going out?”

  • “What would make you drop out of this program?”

  • “What do you want to achieve in 3 months, and what will you do weekly to get there?”


Look for:


  • clarity, not perfection

  • ownership of problems (not blame)

  • evidence of action (even small)

  • openness to feedback


Add a “micro-task” test (my favorite)

Give candidates a tiny pre-work task and see if they do it.


Examples:


  • bring last 7 days of sales (even rough)

  • list top 10 products + prices

  • estimate weekly expenses

  • describe one customer complaint and how they handled it


People who can’t complete a small task before the program starts are unlikely to complete assignments during the program.



5) Set and communicate clear expectations and success criteria

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)


Examples of measurable success criteria

Depending on your program, success can include:


  • sessions attended (e.g., 80% minimum)

  • assignments completed (e.g., 6 of 8)

  • basic recordkeeping implemented

  • cash flow tool used weekly

  • pricing updated based on costs

  • customer outreach actions completed weekly


If you don’t define success, you can’t measure it.



6) Be inclusive, be very inclusive (without becoming sloppy)

This matters, and it deserves to be said plainly.


Inclusion doesn’t mean lowering standards. It means removing unfair barriers so talent isn’t filtered out due to privilege.

Practical inclusion moves

  • 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 (some of the best operators aren’t smooth presenters)


The goal is to select for potential and follow-through, not who sounds impressive on paper.



7) Obtain feedback, assess progress, and improve the selection process

Selection should be treated as a system that improves over time.


Collect feedback from:


  • coaches

  • program managers

  • participants (including those who dropped out)


Then ask:


  • Which criteria predicted success well?

  • Who surprised us (positively or negatively)?

  • What signals did we miss?

  • What barriers caused drop-off?


Then adjust.


Selection is not a one-time design. It’s an evolving discipline.



A practical selection toolkit (quick checklist)


Minimum entry requirements (example)

  • Business is operating OR clear proof of serious launch timeline

  • Entrepreneur can attend at least X sessions

  • Entrepreneur can complete weekly assignments

  • Entrepreneur understands the program requires work

  • Entrepreneur agrees to participation expectations


Readiness indicators (high value)

  • Shows evidence of action taken already

  • Open to feedback and correction

  • Has a clear goal for the program

  • Willing to track numbers (even simply)


Cohort fit

  • Stage and needs align with cohort theme

  • Not a direct competitor conflict (or mitigated)


This is enough to prevent many avoidable failures.



Simple Selection Scorecard (a fast way to pick serious entrepreneurs)

If you want better results from any coaching or support program, stop guessing and start scoring. A simple scorecard can save time and improve outcomes.


Rate each entrepreneur from 1 to 5:


  • Motivation: how badly do they want to grow the business?

  • Consistency: do they show up and follow through on small tasks?

  • Business activity: is there real action already, not just an idea?

  • Learning attitude: do they accept feedback without excuses?

  • Basic money sense: do they track income and expenses in any form?


Total score (max 25):


  • 20–25: high potential, ready for coaching

  • 15–19: can improve, needs monitoring

  • Below 15: not ready yet, likely to drop off


This small system removes emotion from selection and makes program results more predictable.



Red flags that cost you program success

Most programs fail not because of weak training, but because the wrong people get in.


Watch for these red flags:


  • they only talk about funding, not effort or learning

  • no clear example of past business action

  • excuses in early communication before the program even starts

  • inconsistent answers during interviews

  • no willingness to track basic numbers like sales or costs

  • they expect results without showing effort


These signals are more powerful than any written application. Ignore them and you end up carrying participants who slow down the whole group.


A strong program is not about filling seats. It is about selecting people who are ready to work.


“Next-level” selection: a 3-part system that dramatically improves outcomes


If you want selection that holds up to scrutiny (and produces better ROI), build around these three components:


Part A: Eligibility (Can they participate?)

This is logistics and basics.


Examples:


  • stable access to phone/data (if remote)

  • can attend weekly

  • business is operating or launching soon

  • language fit

  • no hard conflict with cohort rules


Part B: Readiness (Will they apply it now?)

This is about timing and capacity.


Examples:


  • time availability

  • mental bandwidth

  • stable enough situation to implement

  • willingness to track numbers

  • openness to behavior change


Part C: Fit (Will the cohort work?)

This is about peer learning and trust.


Examples:


  • similar stage

  • similar operating reality

  • no destructive competitive tension

  • aligned expectations


When programs skip Part B and Part C, they get “numbers reached” and weak outcomes.



FAQs


1) Why is selection so important in entrepreneurship programs?

Because 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?

No. 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 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 time at allThat 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



Conclusion

Proper participant selection isn’t always easy, but it’s worth the time and effort.


If selection is weak, coaching programs become expensive theater, busy, well-intended activity that produces modest results. But when selection is done well, entrepreneurs get real value, coaches can do meaningful work, and implementing organizations can show outcomes that actually matter.


Selection is not a bureaucratic hurdle. It’s one of the most powerful drivers of ROI in business support.


How to Fight Against World Hunger?

World hunger affects over 735 million people globally, driven by poverty, conflict, climate change, and economic inequality. Fighting hunger requires short-term humanitarian aid and long-term systemic solutions that improve food security and nutrition.


How to Fight Against World Hunger?

What Is the Best Way to Fight Hunger?

There are 5 primary strategies to effectively combat hunger:


1. Support Smallholder Farmers

Smallholder farmers produce approximately 33% of the world’s food. Providing access to:

  • Improved seeds (e.g., drought-resistant maize, rice, wheat)

  • Modern tools (e.g., irrigation systems, storage facilities)

  • Agricultural training

  • Fair market accessincreases productivity and local food availability.


2. Empower Women

Women make up about 43% of the global agricultural workforce. Ensuring equal access to:

  • Land ownership

  • Education

  • Financial servicescan increase farm yields by 20–30%, significantly reducing hunger.


3. Reduce Food Waste

Roughly one-third of all food produced is lost or wasted. Effective measures include:

  • Improving supply chains (e.g., cold storage, transportation)

  • Encouraging responsible consumer behavior

  • Redistributing surplus food through food banks


4. Invest in Climate-Resilient Agriculture

Climate change threatens food production through droughts, floods, and extreme weather. Solutions include:

  • Conservation agriculture (e.g., crop rotation, minimal tillage)

  • Efficient water management (e.g., drip irrigation)

  • Agroforestry systems (e.g., integrating trees with crops)


5. Strengthen Social Protection Programs

Government and humanitarian initiatives provide immediate relief, including:

  • School meal programs

  • Cash transfers and food vouchers

  • Emergency food assistance during crises



What Is Being Done to Fight World Hunger?

Global organizations and governments are implementing coordinated actions to end hunger.


1. International Humanitarian Efforts

Key organizations include:

  • World Food Programme: Provides emergency food assistance to over 100 million people annually.

  • Action Against Hunger: Focuses on nutrition, water, and sanitation programs.

  • CARE: Supports food security and women’s empowerment.

  • Oxfam: Advocates for sustainable food systems and poverty reduction.


2. Government Policies

Governments contribute through:

  • Agricultural subsidies and rural development programs

  • National nutrition strategies

  • Social safety nets such as food stamps and school feeding schemes


3. Technological Innovations

Emerging technologies improve food systems:

  • Precision agriculture (e.g., satellite monitoring, sensors)

  • Biofortified crops (e.g., vitamin A–enriched sweet potatoes, iron-rich beans)

  • Digital marketplaces connecting farmers to buyers



What Does “Zero Hunger” Actually Mean?


Zero Hunger is Sustainable Development Goal 2 (SDG 2) established by the United Nations. It aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture by 2030.


Key Targets of Zero Hunger

  1. End hunger and ensure year-round access to safe and nutritious food.

  2. Eliminate all forms of malnutrition, including stunting and wasting.

  3. Double the productivity and incomes of small-scale farmers.

  4. Ensure sustainable food production systems.

  5. Maintain genetic diversity of seeds and livestock.



What 5 Foods Could You Survive On?


Survival requires foods that provide carbohydrates, proteins, fats, vitamins, and minerals. The following 5 nutrient-dense foods can sustain human health for extended periods:

Food

Key Nutrients

Examples of Benefits

Potatoes

Carbohydrates, vitamin C, potassium

Provide energy and essential micronutrients

Eggs

Complete protein, vitamin B12, choline

Support muscle and brain health

Beans

Protein, fiber, iron

Promote satiety and digestive health

Milk

Calcium, protein, vitamin D

Strengthen bones and immunity

Bananas

Carbohydrates, potassium, vitamin B6

Offer quick energy and electrolyte balance

These foods collectively meet most daily nutritional requirements when consumed in balanced quantities.



Did Elon Musk Offer to Solve World Hunger?


Yes, Elon Musk publicly engaged in discussions about funding efforts to combat hunger.


Background of the Offer

  • In 2021, the World Food Programme stated that $6 billion could help prevent famine for 42 million people facing acute food insecurity.

  • Elon Musk responded on social media, indicating he would sell Tesla stock if the organization provided a transparent and detailed plan for how the funds would be used.

  • The World Food Programme later presented a proposal outlining how the funds could support emergency food assistance.


Outcome

  • While Musk did not commit the full $6 billion specifically for this initiative, he donated approximately $5.7 billion worth of Tesla shares to charity in 2021, though the exact allocation toward hunger relief was not publicly specified.

  • The discussion significantly increased global awareness of food insecurity and the need for transparency in humanitarian funding.



How Can Individuals Contribute to Achieving Zero Hunger?


Individuals play a crucial role in supporting global food security. There are 4 actionable steps:

  1. Donate to reputable organizations such as the World Food Programme or Oxfam.

  2. Reduce personal food waste by planning meals and using leftovers.

  3. Support fair trade products, including coffee, cocoa, and bananas.

  4. Advocate for policy change by encouraging governments to prioritize food security.



Conclusion: How Does Fighting World Hunger Support the Goal of Zero Hunger?


Fighting world hunger requires integrated global efforts that combine humanitarian aid, sustainable agriculture, and social protection systems. Achieving Zero Hunger ensures improved health, economic stability, and sustainable development worldwide. By supporting farmers, empowering women, reducing waste, and engaging in advocacy, governments and individuals can collectively create a hunger-free world.


About Donna Rosa

Donna Rosa is Founder and Chief Entrepreneurship Officer of EFour Enterprises LLC, providing remote business coaching and advisory to entrepreneurs in developing countries and emerging economies.


For more information, visit efourenterprises.com. To arrange a complimentary online demo and consultation, contact Donna at donna (at) efourenterprises.com.



 
 
 

Comments


bottom of page