ACE Assessment Report 14 Feb 2014.ppt (1)

Assessment Report
Academy for Creating Enterprise
Mexico City, Mexico
January 2011 – December 2013
Jeremi Brewer, PhD
Gibb Dyer, PhD
BYU Student Interns & Mexico Staff
Kristen West Lauren Christoffersen Samuel Turner
Barry West Johnny Hicks Roger Rodriguez
Seth Ellsworth Dallin Shaner Hortencia Moredia
Bradley Romney Blake Wassom Euridice Espinosa
Tom Eager Daniel Soares Norma Rodriguez

Acknowledgments
This research project began in August of 2012 at the Ballard Center for Economic Self-Reliance in the
Marriott School of Management at Brigham Young University and was conducted under the direction of
Dr. Gibb Dyer, Dr. Rebecca Brewer, and Dr. Jeremi Brewer.
It would be nearly impossible to name all those who have contributed to the success of this project but it is
necessary to mention a few. This research would never have been possible without those at the
Called2Serve Foundation who gave of their resources to ensure the broad scope of this project was
realized - namely, Stephen and Bette Gibson (the Founders of the Academy). Academy Board Member
Ron Lindorf also provided necessary input for this survey. Furthermore, we wish to thank the Mexico Area
Presidency for helping us work under their direction with local leaders throughout Mexico.
We are indebted to the dozens of BYU interns who worked tirelessly under the direction of Kristen West.
We also must express our gratitude to the Academy staff in Mexico for their forbearance as we utilized
their facilities and especially as they assisted in the research in many ways. We must recognize Gandhi
Blas, Jacobo Albores, Euridice Espinosa, Rogelio Rodriguez, and others who helped expedite the results.
More than 10,000 hours were donated to this project among the dozens of MBA, MPA, and undergraduate
BYU and Stanford interns, Academy staff members, Called2Serve board members, and local government
and ecclesiastical leaders in Mexico. Because of their valiant efforts, the response rate for this study was
an impressive 73%. (Nearly 3,400 individuals were contacted to participate in this study and we received
approximately 2,450 responses.)
2

Project Overview
p. 4
Executive Report
p. 8
Methodology &
Survey Factors
p. 11
Samples &
Demographics
p. 19
Economic Success
p. 24
Entrepreneurship
p. 35
Academy
Training Efficacy
p. 46
Religiosity
p. 60
3

Project Overview
Contents
Background ------------------------------ p. 5
Goal ---------------------------------------- p. 6
Project Sections and Definitions----- p. 7
4

Project Overview
5
Background
Founded in Mexico City, Mexico in October 2010 by Dr. Jeremi Brewer, Dr. Rebecca Brewer, and Gandhi Blas
(under the direction of Academy Co-Founders Stephen and Bette Gibson and the Called2Serve Advisory
Board), the Academy for Creating Enterprise (the Academy) was established to train Mexicans, who (1) had
served missions for The Church of Jesus Christ of Latter-day Saints (LDS) or (2) are active members of the
LDS Church, to become successful, self-sufficient entrepreneurs and who would be able to contribute to both
the Mexican and LDS communities as influential leaders and examples.
Latter-day Saints seeking entrepreneurial training are able to apply to three different modalities of instruction:
(1) A six-week residential program designed nearly exclusively for LDS returned missionaries, (2) A six-week,
three nights-per-week training program designed for individuals living within a two hour distance from the
campus, and (3) A ten-day, regional training program—where current and future business owners receive
training in their local communities during the evenings. All three programs introduce students to a variety of
business strategies and case studies, teach fundamental entrepreneurial skills and principles, feature guest
speakers of entrepreneurial standing, and encourage the launch of an income generating activity (IGA).
In the pursuit of financial stability and hopes of conquering poverty, students and instructors of the Academy
have become familiar with the words of a recent LDS Church President, the late Gordon B. Hinckley: “I believe
the Lord does not wish to see his people condemned to live in poverty. I believe He would have the faithful
enjoy the good things of the earth.” The purpose of the Academy deems his statement possible.

Project Overview
6
Goal
The goal of the research project was to assess the efficacy of the entrepreneurial preparation programs offered at
the Academy through the analysis of data and information collected from surveys, thorough responses from
personal interviews, and assessment of the Academy curriculum.
The Report Outline for the Mexico Academy Assessment Study
The results of this research which analyzed the factors defined on the following page was made possible by the
collaborative efforts of Dr. Jeremi Brewer, Dr. Rebecca Brewer, Dr. Gibb Dyer, dozens of BYU interns, and the
combined resources of the Ballard Center for Economic Self-Reliance and the Called2Serve Foundation.
The research teams mentioned created factors of measurement based on economic success as well as the
Academy’s mission statement, incorporating insights from the academic literature and analyzed the economic,
religious, and entrepreneurial outcomes of Academy graduates and compared them to non-Academy graduates.

Project Overview
Project Sections and Definitions
• Economic Success is defined by the research as a Participant’s type and level of physical well-being,
monthly income (Net Gain or Net Loss), and their ability to provide the necessities of life for their
families.
• Entrepreneurial Success is defined by the level of achievement gained from the Academy alumni’s
independently owned businesses.
• Academy Training Efficacy is identified as the effectiveness of the Academy’s specific role in
helping Latter-day Saints start and/or grow a small business.
• Religiosity is identified as LDS religious behaviors.
7

Executive Report
Contents
Findings ------------------- p. 9
Recommendations ------ p. 11
8

• The survey results reveal positive trends for Academy graduates vis-à-vis economic success, personal finance,
subjective/relative well-being. On average, Academy graduates have higher incomes and are more likely to have
savings. Academy graduates have a higher propensity to save and to take on debt (the size of the debt of Academy
graduates suggests that theirs are primarily business, not consumption, loans).
• Academy graduates see themselves as better off than the control group on most economic levels. Furthermore,
Academy graduates feel that they are better prepared than the control group to start a business. This, and other,
subjective measures can be considered as indicators of general happiness with their economic conditions. The
Academy produces entrepreneurs.
• Nearly 75% of Academy graduates (who entered the Academy without a business or IGA) have started a
business and/or IGA since graduating from the Academy, compared with nearly 37% of the control group.
Academy graduates businesses succeed at a higher rate than those of control group entrepreneurs on many levels,
including: gross revenues and number of employees. While Academy business owners brought in significantly
more gross revenue than non-Academy business owners, there is no significant difference in net profit between
the two groups. Academy business owners also save more money than their control counterparts.
• Because the first “Generation” (graduating class) of the Academy took place on March 1st 2011, it is premature to
make any conclusions regarding the generational efficacy of the Academy’s training in Mexico. However, the
surveys represented in this study do serve as a highly valuable longitudinal benchmarking status and can be used
for future research.
• Age distribution (page ) demonstrates the present-day reality necessity entrepreneurship, primarily that individuals
older than 37.5 years are generally forced into starting their own business because employment is unavailable. 9
Executive Report - Findings

• First and foremost: communicate. Broadcasting the findings of this study to Academy Board Members and
peer-reviewed journal publications will modify the existing reputation of the Academy and the current gloomy
outlook on entrepreneurship as a viable solution to poverty in Mexico.
• Despite the numerous efforts and positive outcomes of the Academy, a number of graduates are still receiving
no income, are unemployed, disabled, or have not started a small business and/or IGA. We advise the Alumni
Services Staff at the Academy to develop a program to further assist these people with more significant
support through their Alumni Chapter Program. We also recommend a program to enable communication
among alumni in similar geographic locations or with business interests.
• A popular belief among Mexicans states that financial gain causes one’s religiosity to diminish. However, the
research team has discovered that more Academy alumni hold current temple recommends compared to those
who did not attend the Academy.
• Considering the effects of entrepreneurship in Mexico and the Academy’s objective to produce entrepreneurs,
we recommend the Academy continue to maintain their objective and modify their system accordingly to
create more and better entrepreneurs.
• Two constant complaints regarding Academy efficacy concerns are: (1) Poor leadership in the Alumni Chapter
Program, (2) Little or no additional mentoring available for students once they have graduated, (3) Lack of
professionalism among Academy Staff, and (4) Little to no contact with Academy Founders and/or Board
Members. Follow-up seminars, monthly videos, and more contact with Regional Coordinators may also be
considered to offer further aid and assess the status of graduates in addition to encouraging communication
between students and alumni.
10
Executive Report – Recommendations

Methodology and Survey
Factors
Contents
Phases and Methodology ---- p. 12
Survey Factors ------------------ p. 16
11

Methodology
Phase 1: Survey Development
• The Academy Alumni Survey was developed over the course of nine months under the direction of Dr. Jeremi Brewer and
Dr. Gibb Dyer, with BYU MPA student Kristen West as the research associate. The survey was based on the questionnaires
and national surveys produced by Yale Professor of Economics, Dean Karlan, and adapted to measure the outcomes of
Academy alumni in relation to the mission of the Academy, which is to produce economically successful individuals
through entrepreneurship. The anticipated result of this mission would be that individuals have enough money to be self-
reliant, live the gospel, provide for a family, and bless the LDS Church community and the community in general by
providing jobs, money, and hope. The Academy Alumni Survey was developed to measure the outcomes in the following
areas: economic success/poverty, LDS religiosity, entrepreneurship success, and Academy training efficacy.
• The Survey comprises 156 questions, including several demographic items, business-practice questions, business
knowledge questions, and questions and factors adapted from current literature. See Survey Factors section for more detail
on the development of the survey. To ensure quality and cultural control, this survey was translated by a third-party
translation company from English into Spanish and then from Spanish into English from yet another translation company.
12

Methodology
Phase 2: Survey Administration and Sampling
• There were 2,450 total responses to the survey; 1,948 surveys were submitted by respondents using Qualtrics and
the remaining surveys have yet to be entered into Qualtrics by Academy staff and BYU interns. Approximately
800 responses from the treatment group were returned to BYU and approximately 1,150 responses were received
from the control group.
• Our primary objective was to collect data on as many Academy Alumni as possible (in an effort to benchmark
Academy graduates and use their data in a longitudinal study) and to collect data on comparable non-Academy
graduates.
• Academy alumni were contacted via e-mail and phone and were encouraged to take the survey online. We also
developed a printable version of the survey that we handed out to currently enrolled students in the Academy, the
alumni attending their chapter meetings, and at the 2013 Entrepreneur Academy Awards.
• Control group respondents were collected with the help of the LDS Church leadership in Mexico who were
contacted via email, phone, and in person to organize stake firesides and/or informative workshops about the
Academy, and over 2,000 emails were also sent to the alumni of the Benemerito de las Americas (a nearby LDS
high school which is now the MTC for the LDS Church). No compensation was given to the respondents save a
few hundred who received a souvenir button from the Academy.
13

Methodology
Phase 2 – Continued
• All paper copies of the survey were later inputted into Qualtrics. Initially, the online version of the survey was programmed
to require all respondents to answer all questions; however, due to the large amount of paper surveys that had to be inputted
manually, the forced response feature was removed leaving a majority of the responses with incomplete answers. During the
Winter 2014 semester, we will follow up with the remaining surveys that have not been used for this preliminary report.
• Many questions were skipped by individuals in the control group who currently own a business. Individuals in the control
group also skipped several questions regarding their previously owned business. This was a technical issue due to human
error. Consequentially, business owners in the control group are underrepresented. During the Winter 2014 semester, we will
follow up with the remaining surveys that have not been used for this preliminary report.
Phase 3: Data and Text Analyses
• Respondents with inconsistent responses or unfinished surveys were either called back by a team of BYU interns or filtered
out of this report’s analysis. Completed surveys were subjected to different analyses: Academy analyses and Academy
comparison analyses. The Academy analyses was comprised of differences of survey factors and demographics for
Academy alumni only we included in this analysis alumni who were almost finished with classes with the Academy). The
comparison analyses comprised the differences between Academy alumni, the control group, and other samples on all
survey factors and questions.
14

Methodology
Phase 4: Curriculum Assessment
• The research team also performed a qualitative assessment of the Academy’s curriculum through teacher and
student interviews and an in-depth literature review of the main concepts of entrepreneurship used at the
Academy. Interviews with entrepreneurship professors at Tecnológico de Monterrey, in Santa Fe, Mexico
City, Mexico were conducted and curriculum was compared. Text analyses were performed on the interview
results.
15

Survey Factors
Academy
Survey
Entrepreneurship
Economic Success
Training Efficacy
Religiosity
 Business Ownership
 Business by Industry
 Job Creation / Employment
 Total Gross Revenue & Net Profit
 Income
 Debt
 Ability to Provide for Family
 Savings Tendencies
 Business Knowledge
 Comparative Success
 Mission Service
 Reported Church Attendance
 Current Temple Recommend Status
16

Survey Factors
Economic Success Score
• The Economic Success Score was created to encompass income, savings, and a few questions
regarding transportation, food, and health. The Economic Success Score is centered on respondents’
income.
• Using a Multiple Regression Analysis, Standardized Beta weights were calculated for all other
factors in their prediction of income (total score of income last year and last month) and applied to
each respective variable. The sum of the weighted variables predicting income equals the Economic
Success Score.
• Items with low factor loadings and items that hindered reliability were excluded from the Economic
Success Score. Ideas for item construction were obtained from Ten Indicators to Assess Poverty
Level (2006) created by Muhammad Yunus, the founder of the Grameen Bank, A "Prototypical"
LSMS [Living Standards Measurement Study] Questionnaire: A Summary of the Questionnaire
Design for Ghana (1995) created by Margaret E. Grosh and Paul Williams Glewwe. Academy
Chapter Alumni Services and the team of BYU interns helped make the items in this section relevant
to Mexico.
17

Survey Factors
Business Success Score
• The Business Success Score was created to measure the success of a business based on profit, revenue,
number of locations and employees, and whether or not the respondent owns more than one business. A
multiple regression analysis was used to calculate the beta weights of business success items predicting
profit of the business in the past month. The sum of the items with the weights applied equals the Business
Success Score. Factor loadings for business size items were relatively low but their beta weights were also
relatively low and were still included in the scoring. Reliability remains sufficient.
LDS Religiosity Score
• The LDS Religiosity Score was created to measure the activity of members of the Church based on several
important items such as: (1) Sacrament meeting attendance, (2) Current temple recommend holders, and (3)
Missionary service. Using a multiple regression analysis, standardized beta weights were calculated for
temple recommend holders to predict church attendance. Although the factor loadings are high, reliability
results are relatively low. This may be due to the lack of questions in the development of this factor and/or
because of the bias of respondents.
18

Samples and
Demographics
Contents
Sample Size, Gender ----------------- p. 20
Geographic ----------------------------- p. 21
AGE, Education ----------------------- p. 22
Marital Status & Children ---------- p. 23
19

Samples and Demographics
20
Control
500
65%
35%
Treatment Gender
Male
Female
57%
43%
Control Gender
Male
Female
50%50%
Sample Size
Treatment
Control
Treatment
500

21
0%
20%
40%
60%
Group A Group B Group C
13%
56%
31%
11%
51%
38%
Regional Distribution of
Sample
Treatment Control
45%
50%
55%
60%
Treatment Control
56%
51%
Group B
10%
11%
12%
13%
Treatment Control
13%
11%
Group A
0%
10%
20%
30%
40%
Treatment Control
31%
38%
Group C

22
0%
10%
20%
30%
20-25 26-30 31-35 36-40 41-45 46+
19% 18% 19%
11% 12%
22%
24%
13% 11% 11%
14%
26%
Age
Treatment
Control
0%
10%
20%
30%
40%
50%
60%
Elementary Junior High High School Technical
Degree
Bachelor's Master's Doctorate
1% 3%
18% 18%
51%
7%
1%1%
9%
28%
16%
41%
5%
0%
Education
Treatment
Control

23
Single
Married
52%
48%
37%
63%
Marital Status
Treatment Control
0%
10%
20%
30%
40%
50%
0 1 2 3 4 5 6 7
38%
11%
20% 17%
9%
4% 1% 1%
48%
8%
16% 16%
7% 4% 1% 1%
Number of Children
Treatment Control

Economic Success
Contents
Summary -------------------------------- p. 25
Primary Source of Income ---------- p. 28
Income Comparison ------------------ p. 29
Net Gain --------------------------------- p. 30
Ability to Provide for Family ------- p. 31
Saving Tendencies --------------------- p. 32
Personal Savings & Personal Debt - p. 33
Depth of Savings ----------------------- p. 34
24

Economic Success - Summary
25
Primary Source of Income
• Academy graduates are two and a half times more likely than the control group to provide
for their families through their small businesses and/or income generating activities. This
is a strong indication that the Academy’s training is helping graduates build stronger
family (livelihood) businesses than the control group.
• Academy graduates depend nearly five and a half times less than the control group on
friends and/or family members for their primary source of income.
Monthly Income Comparison
• The data reveal positive trends for Academy graduates vis a vis economic well-being,
personal finance, and subjective/relative well-being. When compared to the control group,
there are significantly less Academy graduates in the first category (< $12,000 MXP). It is
important to note that the majority of the control group is comprised of employees.
• The correlation (but not necessary causation) might indicate that Academy graduates earn
more money each month than the control group. This assertion is supported when
comparing Academy graduates to the control group in the second category ($12,001 MXP -
$25,000 MXP), where Academy graduates earn significantly more money each month.

26
Monthly Net Gain (I earn more than I spend to support my family…)
• Academy graduates self-define as better savers. They outperform the control group,
significantly. Causation for this outcome may be due to the fundamental principles (the 25
Rules of Thumb) taught at the Academy, namely: “practice separate [financial] entities,”
“pay yourself a livable salary,” “live within your means,” “postpone early gratification,” and
“have and keep a family budget.” Causation remains to be verified.
• When compared at the granular level of frequency, the data reveal that Academy graduates
self-define as more frequent savers and outperform the control group members (who also
self-define) on every point of the spectrum. The “Doesn’t Apply” category is comprised of
single men and women who depend on their parents for day-to-day living.
Ability to Provide
• Academy graduates self-define as better able to provide the necessities of life (food, water,
and shelter) for their family than the control group.

27
Saving Tendencies
• Academy graduates significantly define themselves as more frequent savers than their control group
counterparts. Correlation for this data point might be the Rule of Thumb “Make more money than you
spend,” though causation remains to be demonstrated.
Personal Savings & Personal (Consumer) Debt
• Academy graduates have a significantly higher propensity to keep a personal savings account than the
control group. There is no significant difference of personal debt between the control group and Academy
graduates.
• Academy graduates have a marginally lower tendency (not significant) toward personal (consumer) debt
than the control group. Though, the vast majority of both groups fail to demonstrate cognizance regarding
the amount of their debts. Recommendation: place emphasis on debt and understand debt in the
Academy’s curriculum.
Depth of Savings
• When asked “How many months you can subsist with no income,” Academy graduates self-define at a
significantly higher rate than the control group counterparts.

Economic Success
Income
28
39%
26%
10%
1%
3% 2%
6%
2%
4%
7%
15%
29%
11%
2%
16%
2%
6%
1%
5%
13%
What is your primary source of income?
Treatment Control Note: “Doesn’t Know” response
indicates respondents who answered
more than one principal source of
income.

Economic Success
Income
29
Under 12,000 12,001-25,000 25,001-51,000 51,001+
65%
24%
9%
2%
77%
13% 9%
2%
Monthly Income Comparison
Treatment
Control
Control
Treatment
42%
77%
Monthly Net Gain: I make more money than I spend…

Economic Success
Income
30
0%
5%
10%
15%
20%
25%
30%
Never Infrequently Sometimes Frequently Always Doesn't
Apply
6%
13%
17%
21%
22%
20%
13%
19%
16%
11% 12%
28%
I earn more money than I spend to support my family each month…
Treatment
Control

Economic Success
Providing
31
0%
10%
20%
30%
40%
50%
60%
Never Infrequently Sometimes Frequently Always Doesn't Apply
2%
3% 4%
16%
56%
18%
3% 3%
7%
15%
43%
28%
I can provide food, water, and shelter for my family...
Treatment
Control

Economic Success
Saving Tendencies
32
0%
5%
10%
15%
20%
25%
30%
Never Infrequently Sometimes Frequently Always Doesn't
Apply
6%
19%
23% 22%
27%
2%
9%
26%
23%
16%
18%
7%
I save money…
Treatment
Control

Economic Success
Personal Savings & Personal Debt
33
0%
10%
20%
30%
40%
50%
60%
70%
Doesn't
Know How
Much
Less than
5,000
5,000 to
50,000
over 50,000
66%
10%
16%
9%
65%
4%
17%
13%
Has Personal (Consumer) Debt
Treatment
Control
0%
10%
20%
30%
40%
50%
60%
70%
80%
Treatment Control
71%
37%
Has Personal Savings

Economic Success
Depth of Personal Savings
34
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5 6 7 8 9 10 11 12 13
18%
22%
15%
15%
8%
4%
7%
1% 1% 1%
1%
0%
7%
30%
14%
8%
18%
1%
5%
9%
0% 0%
1%
5%
1%
8%
Own a Business Do Not Own a Business
Business to Savings Ratio
Number of Months

Entrepreneurship
Contents
Summary ------------------------------- p. 36
Business Ownership ----------------- p. 40
Business by Industry ---------------- p. 42
Job Creation ---------------------------- p. 43
Gross Revenue ------------------------- p. 44
Net Profit ------------------------------- p. 45
35
Note: See methodology

Entrepreneurship - Summary
36
Business Ownership
• Currently (December 2013), business ownership among Academy graduates is twice
as high as ownership among the control group. This shows business sustainability.
• Academy graduates also start businesses two times more often than the control
group. This shows business launching.
• 73% of graduates surveyed have their own businesses compared with 36% of the
control group.
• 87% of the Academy graduates have at one point in time launched a business
compared with 37% of the control group. This finding may indicate that individuals
who attend the Academy have a higher propensity to launch (own) their own
business, and therefore, enroll in the Academy’s program voluntarily at a higher rate
than the control group.

37
Business Launched Post Graduation
• The Academy does not measure its success only on the number of individuals
trained. The Academy measures its success on the amount of businesses launched
by graduates.
• 54% of the individuals who enter the Academy without owning a business currently
own their own business.
• YTD: 57% of the individuals who enter the Academy without a business have
launched and sustained a business.
Businesses by Industry
• Academy graduates and control group participants are involved almost equally
across the types of businesses started and owned. This is congruent with the
literature regarding SMEs in emerging markets.

38
Job Creation
• Academy graduates employ more than two times the amount of people employed by the
control group. Additionally, Academy graduates tend to have smaller business, but with
significantly more employees per business than the control group.
Gross Revenue
• Academy graduates brought in significantly more gross revenue than the control group in
the “< $5,000 MXN Pesos” category. In all other gross revenue categories, there is no
significant difference between the Academy graduates and control group.
• The data of the final category, which demonstrate “Business Knowledge,” reveals that
Academy graduates significantly outperform the control group. Causation has yet to be
founded, though a safe assumption would indicate that the output of the Academy
graduates is positively correlated (or caused by) the Rule of Thumb “Keep Good
Records.”

39
Net Profits
• While Academy graduates brought in significantly more gross revenue than the control
group in the “< $5,000 MXN Pesos” category, the control group marginally outperforms
the Academy graduates in this category; though there is no significance.
• In the categories “ > $5,000 and < $50,000” Academy graduates appear to outperform the
control group—significance and correlation have yet to be determined.
• The data of the final category, which demonstrate “Business Knowledge,” reveals that
Academy graduates significantly outperform the control group. Causation has yet to be
determined, though a safe assumption would indicate that the output of the Academy
graduates is positively correlated (or caused by) the Rule of Thumb “Keep Good Records”

Entrepreneurship
Business Ownership
40
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% 73%
87%
36% 37%
Currently Own a Business
Treatment Control
Currently Own a Business Have Previously Started/Owned a Business
*Academy graduates start and maintain businesses two times better than control group.

Entrepreneurship
Businesses Launched Post Graduation
41
0%
10%
20%
30%
40%
50%
60%
New Businesses Launched
57%
57% of Academy Graduates Who Entered Without
a Business Now Have a Business
December 2013
January 20110%
42%
44%
46%
48%
50%
52%
54%
Entered
TrainingWith
Business
Entered Training
Without Business
46%
54%
Treatment Group Only
* > 417 New Businesses Launched YTD (Since 1/1/11)
of Total Graduates Who Entered Without a Business.

Entrepreneurship
Business Type
42
0%
5%
10%
15%
20%
25%
30%
35%
40% 36%
11%
31%
7%
1% 1%
12%
34%
14%
39%
3%
0% 1%
9%
Businesses by Industry
Treatment Control

Entrepreneurship
Job Creation
43
0%
10%
20%
30%
40%
1 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 +
33%
2% 0% 0% 0% 1%
21%
3%
1% 0% 0% 1%
Number of Employees Breakdown (Excluding Business Owner)
Treatment Control
0 200 400 600 800 1000 1200
Treatment
Control
1,007
473
Total # of Employees (Not Counting Business Owner)

Entrepreneurship
Gross Revenue
44
*This is significant because (1) Academy graduates sell significantly more than non-grads and (2) Academy
graduates know significantly more about the financial health of their businesses.
0%
10%
20%
30%
40%
50%
60%
< 5,000 5,001 - 25,000 25,000 - 50,000 50,001 + Don't Know
17%
21%
5%
14%
43%
5%
21%
4%
15%
55%
Gross Revenue Comparison
Treatment
Control

Entrepreneurship
Net Profit
45
*This is significant because (1) Academy graduates have a significantly higher net-profit than non-
grads and (2) Academy graduates have significantly more control over their financial records of their
businesses.
43%
9% 7%
41%
31%
7%
12%
50%
0%
10%
20%
30%
40%
50%
60%
Under 25,000 Between 25,000
and 50,000
Over 50,000 Don't Know (No
Response)
Net Profit
(MXN Peso)
Treatment
Control

Academy Training
Efficacy
Contents
Summary ------------------------------- p. 47
Business Knowledge----------------- p. 52
Comparative Success ---------------- p. 58
46

47
Academy Training Efficacy - Summary
Business Knowledge Index
• The literature encompassing the fundamental question of whether or entrepreneurship can be trained /
taught suggests that there are differing opinions. The data in this survey are used to demonstrate
whether or not the Academy graduates have acquired a deeper sense of the “business knowledge
index” (Karlan, 2010).
• *It is important to remember that Business Knowledge Index questions only ask whether or not they
believe and/or feel that it is important to do this and it does not measure whether or not they do.
• Because the Academy teaches specific “Rules of Thumb,” (condense phrases that teach a specific
business principle) a few of the most pertinent “Rules of Thumb” were assessed in this survey and are
presented in this section.
• All questions are self-reported, and therefore, speculations may arise concerning the validity and/or
reliability of the answers. However, the methodology and implementation of the survey was
conducted according to ORCA regulations and in accordance to the methodologies of other
researchers in this field.
• Questions that were skipped or omitted by the participants were followed up through direct phone
calls to the participant by a team of dedicated BYU interns.

48
Rule of Thumb: Pay Yourself A Livable Salary
• The literature regarding whether or not necessity entrepreneurs pay themselves a salary from
their business is scarce. However, Karlan (2010) has indicated through his research that most
necessity entrepreneurs in his studies do not (1) believe that they should pay themselves a
livable salary, (2) were never aware that this is a common (and necessary) practice for
business growth, and (3) that most necessity entrepreneurs habitually ‘take what they need’
from their business ‘when they need it’.
• The data in this study reveal that Academy graduates significantly outperform the control
group regarding the importance of paying themselves a livable salary.
Perception of Competency: I Understand Local Financial Markets…
• The data in this study reveal that Academy graduates significantly outperform the control
group regarding their feeling of competency in understanding the local financial markets.

49
Rule of Thumb: Work On (And Not Just In) Your Business
• The Academy teaches that a principle of success is to allocate sufficient time each day
contemplating, evaluating, planning, strategizing, and preparing the activities that need to be done
each day to help your business grow.
• The data reveal that Academy graduates believe that working on their business is important at a
significantly higher rate than the control group participants. Causation for this outcome is yet to be
determined, but a safe assumption would indicate that the output of the Academy graduates is
positively correlated (or caused by) the knowledge this Rule of Thumb offers.
Rule of Thumb: Use Multiple Suppliers
• The Academy teaches that small business owners must purchase their supplies from several
vendors/suppliers so that they can negotiate better prices and not depend completely on the
supplies of a single entity.
• The data reveal that Academy graduates believe that purchasing from multiple suppliers is
important at a significantly higher rate than the control group participants, but a safe assumption
would indicate that the output of the Academy graduates is positively correlated (or caused by) the
knowledge this Rule of Thumb offers.

50
Confidence With Current Competency
• The data reveal that Academy graduates believe that they are more prepared (competent) to
start a business at a significantly higher rate than the control group participants. Though
causation has not yet been demonstrated, a safe assumption would indicate that the data
revealed here are directly correlated with (and possible caused by) the “25 Rules of
Thumb…which are the backbone of business management” taught by the Academy.
Before and After: Business Gross Revenue
• Interpretation of the data for this graph will require further analysis to determine causation and
correlation.
• There does exist, however, a persuasive hypothesis/argument that could explain what has
transpired with the businesses of Academy graduates, specifically:
It is plausible that Individuals who owned small businesses ( i.e. < $10,000 MXN Pesos)
upon entering the Academy immediately improve, and consequently, their businesses land in
the following category (i.e. $10,001 - $25,000 MXN Pesos). The same logic could be used to
explain the increase demonstrated by the data in each of the subsequent categories.

51
Rule of Thumb: Keep Good Records
• One of the fundamental “Rules of Thumb” taught by the Academy is: Keep Good Records. As
part of the recordkeeping training, Academy graduates are given case studies that require them
to understand how to create and populate income statements. Furthermore, because each
individual enrolled in the Academy’s training program starts a small income generating
activity (IGA), or small business, they are required to keep daily records by way of an income
statement.
• Though causation has not yet been demonstrated, a safe assumption would indicate that the
data revealed here are directly correlated with (and possible caused by) the “25 Rules of
Thumb…which are the backbone of business management” taught by the Academy.

Academy Training Efficacy
52
How important is capital when starting a business?
0%
5%
10%
15%
20%
25%
30%
35%
40%
Very
Insignificant
Insignificant Somewhat
Insignificant
Neutral Somewhat
Significant
Significant Very
Significant
11%
10% 9%
17% 17%
21%
15%
4%
3%
5%
12% 12%
26%
39%
Treatment
Control

53
0%
10%
20%
30%
40%
50%
60%
3% 1% 1%
5% 4%
27%
59%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2% 1% 0% 1% 0%
14%
82%
Academy Graduates (Treatment) Control Group
It is important to pay yourself a salary from your business…

54
It is important to pay yourself a salary from your business…
0%
10%
20%
30%
40%
50%
60%
70%
80%
No Sometimes Yes
79%
9%
12%
30%
9%
61%
Do you pay yourself a salary?
(Treatment Only)
Pre-Treatment Post-Treatment
0%
10%
20%
30%
40%
50%
60%
70%
No Sometimes Yes
30%
9%
61%
67%
8%
27%
Do you pay yourself a salary?
Treatment Control
*This is significant because (1) Academy graduates are more likely to pay themselves a
salary and (2) Academy graduates are more likely to pay themselves a salary after they
have completed training.

55
I understand the local financial markets…
0%
5%
10%
15%
20%
25%
30%
17%
11% 10%
27%
13% 13%
9%
0%
5%
10%
15%
20%
25%
6%
4%
6%
20% 19%
22%
21%
Treatment Control Group

56
0%
10%
20%
30%
40%
50%
60%
5%
2% 2%
4% 5%
23%
58%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
4% 3% 3%
7%
9%
30%
44%
Treatment Control Group
It’s Important To Spend Time Working on Your Business…

57
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
89%
40%
Percentage Who Feel They Have The
Skill To Start Their Own Business
Treatment Control
0%
20%
40%
60%
80%
100%
5%
88%
6%5%
68%
26%
Which Option Would Be Best for
Your Business?
Treatment Control
* A clear indication that the Treatment group has:
(1) A better understanding of sound purchasing
practices and (2) A better working knowledge of
their businesses.
* A clear indication that the Treatment group feels
much more confident that they are equipped to start
their own small businesses post-training.
Single Multiple Don’t Know
Supplier Suppliers

Before and After Comparisons
58
58%
21%
13%
9%
41%
29%
11%
18%
Business Revenue Before Treatment
Business Revenue After Treatment
Before and After Treatment Comparison: Monthly Business (Gross) Revenue
Note: This table applies only to Treatment Group members who
owned a Business Prior to their training.
< $10,000 $10,001 - $25,000 $25,001 - $50,000 >$50,001

Before and After Comparisons
59
0%
20%
40%
60%
80%
54%
70%
% That Did Not Use Income % of Left Column That Use Income
Statement Prior to Treatment Statement Post Treatment
• 230 (46%) of the sample were business owners upon entering the Academy.
• 125 (54%) of of the business owners who entered the Academy did not use an Income Statement for
their business prior to entering the Academy.
• Post treatment, an additional 86 individuals (70%) began using Income Statements.
• 84% of Treatment Group now use an Income Statement.

Religiosity
60
Contents
Summary ------------------------------- p. 61
Mission Service------------------------ p. 62
Sacrament Meeting Attendance -- p. 62
Current Temple Recommend------ p. 62

Religiosity - Summary
61
A Note on Religiosity
• With the permission of the Mexico Area Presidency, this report will only
demonstrate three indicators regarding the overall religiosity of the Treatment
Group (Academy Graduates) and Control Group:
1. Missionary Service
2. Current Temple Recommend Holders
3. Church (Sacrament Meeting) Attendance

Religiosity
62
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Treatment Control
88%
69%
Current Temple Recommend
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
61%
39%42%
58%
Mission Service
Treatment
Control
*Note: Training with the Academy has no negative impact on religiosity
0%
20%
40%
60%
80%
100%
Never Less Than Once a
Month
Aproximately Once A
month
Once a Week
0% 2%
13%
85%
2% 7%
20%
73%
Church Meeting Attendance
Treatment
Control

ACE Assessment Report 14 Feb 2014.ppt (1)

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