Click here for search results
When is capital enough to get female enterprises growing ? evidence from a randomized experiment in Ghana
 
Author:Fafchamps, Marcel; McKenzie, David; McKenzie, David; Quinn, Simon; Woodruff, Christopher; Collection Title:Policy Research working paper ; no. WPS 5706
Country:Ghana; Date Stored:2011/06/23
Document Date:2011/06/01Document Type:Policy Research Working Paper
Language:EnglishRegion:Africa
Report Number:WPS5706SubTopics:Scientific Research & Science Parks; Economic Theory & Research; Debt Markets; Science Education; Investment and Investment Climate
Volume No:1 of 1  

Summary: Standard models of investment predict that credit-constrained firms should grow rapidly when given additional capital, and that how this capital is provided should not affect decisions to invest in the business or consume the capital. The authors randomly gave cash and in-kind grants to male- and female-owned microenterprises in urban Ghana. Their findings cast doubt on the ability of capital alone to stimulate the growth of female microenterprises. First, while the average treatment effects of the in-kind grants are large and positive for both males and females, the gain in profits is almost zero for women with initial profits below the median, suggesting that capital alone is not enough to grow subsistence enterprises owned by women. Second, for women they strongly reject equality of the cash and in-kind grants; only in-kind grants lead to growth in business profits. The results for men also suggest a lower impact of cash, but differences between cash and in-kind grants are less robust. The difference in the effects of cash and in-kind grants is associated more with a lack of self-control than with external pressure. As a result, the manner in which funding is provided affects microenterprise growth.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 61 pagesOfficial version*4.27 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/T5POV0SEK0