Dean S. Karlan and Martin Valdivia examine the impact of business training on microfinance clients and institutions through a randomized control trial in Peru. The study evaluates the marginal effects of adding entrepreneurship training to a microfinance program for female microentrepreneurs. Treatment groups received 30-60 minute training sessions during weekly or monthly banking meetings over one to two years, while control groups continued with loan and savings activities only. The results show that the training led to improved business knowledge, practices, and revenues for clients, as well as higher repayment and client retention rates for the microfinance institution. The benefits were most pronounced for clients with less initial interest in training, suggesting that business training can significantly enhance outcomes for those who are less engaged. The study also found positive impacts on household outcomes, including increased school hours for female children and reduced child labor, though the effects on household decision-making were not significant. The microfinance institution benefited from increased client retention and repayment, which are critical for sustainability. The findings suggest that integrating business training into microfinance programs can be effective, but the implementation must consider the varying levels of client engagement and the potential for training to influence both business and household outcomes. The study highlights the importance of evaluating the impact of non-financial services in microfinance and provides insights into the effectiveness of training programs in improving economic outcomes for the poor.Dean S. Karlan and Martin Valdivia examine the impact of business training on microfinance clients and institutions through a randomized control trial in Peru. The study evaluates the marginal effects of adding entrepreneurship training to a microfinance program for female microentrepreneurs. Treatment groups received 30-60 minute training sessions during weekly or monthly banking meetings over one to two years, while control groups continued with loan and savings activities only. The results show that the training led to improved business knowledge, practices, and revenues for clients, as well as higher repayment and client retention rates for the microfinance institution. The benefits were most pronounced for clients with less initial interest in training, suggesting that business training can significantly enhance outcomes for those who are less engaged. The study also found positive impacts on household outcomes, including increased school hours for female children and reduced child labor, though the effects on household decision-making were not significant. The microfinance institution benefited from increased client retention and repayment, which are critical for sustainability. The findings suggest that integrating business training into microfinance programs can be effective, but the implementation must consider the varying levels of client engagement and the potential for training to influence both business and household outcomes. The study highlights the importance of evaluating the impact of non-financial services in microfinance and provides insights into the effectiveness of training programs in improving economic outcomes for the poor.