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Entrepreneurship in Development: Four Essays on Microfinance and Business Training

Berge, Lars Ivar Oppedal
Doctoral thesis
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http://hdl.handle.net/11250/281069
Utgivelsesdato
2011
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  • Doctoral Dissertations (SAM) [64]
Sammendrag
Which is the most binding constraint to microenterprise development, human capital or

financial capital? To answer this question, we present the first field experiment that jointly

investigates these two constraints for poor microentrepreneurs, by introducing separate

treatments of business training and a business grant. We combine survey data and data from

a lab experiment to investigate treatment effects on business results, business practices,

business skills and mind-set. Our study demonstrates a strong effect of business training on

male entrepreneurs, while the effect on female entrepreneurs is much more muted. There is no

effect of the business grant for either males or females. The results suggest that human capital

may be the more important constraint for poor microentrepreneurs, but also point to the need

for more comprehensive measures to promote development among female entrepreneurs

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