Impact of Credit and Training on Enterprise Performance: Evidence from Urban Ethiopia
30 Pages Posted: 27 Jun 2019
Date Written: June 26, 2019
This study evaluates the impact of business-development-support programs (credit, training, and a combination of both) on the performance of micro- and small enterprises (MSEs) in Ethiopia. Using 2015 Ethiopian urban survey data and employing endogenous-switching regressions for multiple treatments, we document a positive and significant effect of credit, training, and a combination of training and credit on MSEs. Our results highlight the heterogeneity in treatment effects between women- and men-owned MSEs: women-owned businesses do not benefit from access to treatments. Our results suggest that improving the performance of MSEs requires fine-tuned interventions that meet the specific needs of men and women who own small businesses rather than one-size-fits-all programs.
Keywords: Treatment effects, MSEs, Ethiopia
JEL Classification: C31, J16, M21
Suggested Citation: Suggested Citation