| By: |
Olga Biosca Artiñano (Yunus Centre for Social Business and Health, Glasgow Caledonian University) |
| Abstract: |
Recent microfinance crises have put into question the effectiveness of
microfinance for poverty alleviation. In this context, non-financial services
supplied by microfinance institutions re-emerge as a mechanism to strengthen
microfinance’s effect on wellbeing through human capital formation. By
exploiting a natural experiment, this paper measures the marginal impact of an
internationally standardized business development program supplied by a
Mexican microfinance institution to female business owners. The treatment
group had received for a year from 30 to 45 minute sessions after credit
repayment meetings. Using a double differences method, it can be observed that
the program does not have the expected effects on key variables such as
revenues. There is a positive impact on good business practices, but also the
risk of an increase of informality. |
| Keywords: |
microfinance, business development services, human capital, education, business managment |
| JEL: |
C31 I25 J24 O12 O15 O16 |
| Date: |
2014–08–27 |
| URL: |
http://d.repec.org/n?u=RePEc:cjz:ca41cj:23&r=mfd |