Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan [book]

Xavier Giné, Ghazala Mansuri
2014 Policy Research Working Papers  
This paper identifies the importance of access to human capital and credit for entrepreneurship. We conduct a field experiment in rural Pakistan where a subset of male and female microfinance clients were offered 8 full time days of business training and the opportunity to participate in a lottery to access business loans of up to 100,000 Rs (USD 1,700), about seven times the average loan size. We find that offering business training leads to increased business knowledge, better business
more » ... es and improvements in several household and member outcomes. These effects are mainly concentrated among male clients, however. Among men, business training also leads to lower attrition among baseline businesses and better financial decisions. Women improve business knowledge but show no improvements in other outcomes. Access to the larger loan, in contrast, has little effect, indicating perhaps that existing loan size limits already meet the demand for credit for these clients.
doi:10.1596/1813-9450-6959 fatcat:wg3bbs22pfhbdhptveefzc5rei