Publication:
When is Capital Enough to Get Female Enterprises Growing? Evidence from a Randomized Experiment in Ghana

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dc.contributor.authorFafchamps, Marcel
dc.contributor.authorMcKenzie, David
dc.contributor.authorQuinn, Simon
dc.contributor.authorWoodruff, Christopher
dc.date.accessioned2012-03-19T18:03:01Z
dc.date.available2012-03-19T18:03:01Z
dc.date.issued2011-06-01
dc.description.abstractStandard models of investment predict that credit-constrained firms should grow rapidly when given additional capital, and that how this capital is provided should not affect decisions to invest in the business or consume the capital. The authors randomly gave cash and in-kind grants to male- and female-owned microenterprises in urban Ghana. Their findings cast doubt on the ability of capital alone to stimulate the growth of female microenterprises. First, while the average treatment effects of the in-kind grants are large and positive for both males and females, the gain in profits is almost zero for women with initial profits below the median, suggesting that capital alone is not enough to grow subsistence enterprises owned by women. Second, for women they strongly reject equality of the cash and in-kind grants; only in-kind grants lead to growth in business profits. The results for men also suggest a lower impact of cash, but differences between cash and in-kind grants are less robust. The difference in the effects of cash and in-kind grants is associated more with a lack of self-control than with external pressure. As a result, the manner in which funding is provided affects microenterprise growth.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110623170731
dc.identifier.doi10.1596/1813-9450-5706
dc.identifier.urihttps://hdl.handle.net/10986/3470
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5706
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAFFILIATED ORGANIZATIONS
dc.subjectAGRICULTURE
dc.subjectARBITRAGE
dc.subjectCAPITAL GRANT
dc.subjectCAPITAL GRANTS
dc.subjectCAPITAL REQUIREMENT
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL STOCKS
dc.subjectCASH TRANSFER
dc.subjectCASH TRANSFERS
dc.subjectCHECKS
dc.subjectCOMMITMENT DEVICE
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONSUMERS
dc.subjectCREDIT ASSOCIATIONS
dc.subjectDATA COLLECTION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT POLICY
dc.subjectDEVELOPMENT RESEARCH
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNT RATES
dc.subjectDIVESTMENT
dc.subjectDUMMY VARIABLES
dc.subjectDURABLE
dc.subjectEQUILIBRIUM
dc.subjectEQUIPMENT
dc.subjectEXCESS LIQUIDITY
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPERIMENTAL DESIGN
dc.subjectEXPERIMENTS
dc.subjectFARMING HOUSEHOLDS
dc.subjectFINANCIAL SUPPORT
dc.subjectFORMAL LOAN
dc.subjectFUNGIBLE
dc.subjectHOUSEHOLD BARGAINING
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD WEALTH
dc.subjectHUMAN CAPITAL
dc.subjectILLIQUIDITY
dc.subjectIMPERFECT SUBSTITUTES
dc.subjectIMPLICIT TAX
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERVIEWS
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT DECISIONS
dc.subjectLABOR MARKET
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectLOCAL BANK
dc.subjectMACHINERY
dc.subjectMICROENTERPRISES
dc.subjectMODELING
dc.subjectNEGATIVE INTEREST RATES
dc.subjectPRODUCTIVE INVESTMENTS
dc.subjectRESEARCH WORKING PAPERS
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRETURNS TO SCALE
dc.subjectRISK AVERSION
dc.subjectSAVINGS
dc.subjectSAVINGS ACCOUNT
dc.subjectSAVINGS DEPOSIT
dc.subjectSAVINGS RATE
dc.subjectSHARE OF ASSETS
dc.subjectSMALL BUSINESSES
dc.subjectSOCIAL NETWORKS
dc.subjectSTATEMENT
dc.subjectSTATEMENTS
dc.subjectSTOCK DATA
dc.subjectTAX
dc.subjectTAX RATE
dc.subjectTAXATION
dc.subjectTIME LAG
dc.subjectTURNOVER
dc.subjectVALIDITY
dc.subjectVALUE ADDED
dc.subjectWAGES
dc.subjectWORKING CAPITAL
dc.titleWhen is Capital Enough to Get Female Enterprises Growing? Evidence from a Randomized Experiment in Ghanaen
dspace.entity.typePublication
okr.crossref.titleWhen is Capital Enough to get Female Enterprises Growing? Evidence from a Randomized Experiment in Ghana
okr.date.disclosure2011-06-01
okr.date.doiregistration2025-04-10T11:24:59.323353Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110623170731
okr.globalpracticeEducation
okr.guid651731468253176197
okr.identifier.doi10.1596/1813-9450-5706
okr.identifier.externaldocumentum000158349_20110623170731
okr.identifier.internaldocumentum14447548
okr.identifier.reportWPS5706
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/06/23/000158349_20110623170731/Rendered/PDF/WPS5706.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica
okr.region.countryGhana
okr.region.geographicalWest Africa
okr.region.geographicalSub-Saharan Africa
okr.topicScience Education
okr.topicEducation
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isAuthorOfPublication.latestForDiscovery148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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