Can microenterprises grow through finance?

Tuesday, December 10, 2013

Some also think microfinance is a good way for existing businesses to acquire the cash they need to expand their businesses. Yet, with the exception of Field, et al. (2013), who offer a repayment grace period, recent experiments have failed to find a significant effect from microfinance on business profits. Most studies though focus on female owned enterprises only (though some include a small number of men), and the experiments are done either at the group level or with marginal clients.

Source: World Bank Blogs (link opens in a new window)