Publication: Barriers to Entrepreneurship in Rural Pakistan
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Date
2014-09
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2014-09
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Abstract
The note examines the extent to which lack of financial capital and lack of managerial capital inhibit the growth of small firms in rural Pakistan.
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“Gine, Xavier; Mansuri, Ghazala. 2014. Barriers to Entrepreneurship in Rural Pakistan. Finance & PSD Impact;no. 29. © http://hdl.handle.net/10986/20430 License: CC BY 3.0 IGO.”
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This paper uses a series of randomized field experiments in rural India to test the importance of price and non-price factors in the adoption of an innovative rainfall insurance product. The analysis finds that demand is significantly price-elastic, but that even if insurance were offered with payout ratios similar to US, widespread coverage would not be achieved. The paper identifies key non-price frictions that limit demand: liquidity constraints, particularly among poor households, lack of trust, and limited salience. The authors suggest potential improvements in contract design to mitigate these frictions.Publication Entrepreneurship Training and Self-Employment among University Graduates : Evidence from a Randomized Trial In Tunisia(World Bank, Washington, DC, 2012-12)In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. 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