Contract Design, Business Growth, and Female Entrepreneurship: Evidence from Microfinance in India

Low average returns of female-run enterprises reflects the fact that women’s capital is typically invested into their husband’s enterprise

From:
Department for International Development
Published
31 December 2017
Country:
Ghana, India and Sri Lanka
Document Type:
Research Paper
Theme:
Economic Growth
Authors:
Field, E, Pande, R and Rigol, N

Abstract

Several field experiments find positive returns to grants for male and not female micro- entrepreneurs. But these analyses overlook that female entrepreneurs often reside with a male business owner. Using data from randomized trials in India, Sri Lanka and Ghana, the authors show that the gender gap in microenterprise performance is not due to a gap in aptitude. Instead, low average returns of female-run enterprises reflects the fact that women’s capital is typically invested into their husband’s enterprise. Household-level income gains are equivalent regardless of the grant or loan recipient’s gender.

This research was funded under the Private Enterprise Development in Low Income Countries (PEDL) Programme

Citation

Field, E., Pande, R., Rigol, N. (2017) Contract Design, Business Growth, and Female Entrepreneurship: Evidence from Microfinance in India, PEDL.

Contract Design, Business Growth, and Female Entrepreneurship: Evidence from Microfinance in India

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Published 31 December 2017
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