Publication:
Getting Credit to High Return Microentrepreneurs : The Results of an Information Intervention

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creativeworkseries.issn1564-698X
dc.contributor.authorde Mel, Suresh
dc.contributor.authorMcKenzie, David
dc.contributor.authorWoodruff, Christopher
dc.date.accessioned2013-05-21T15:47:31Z
dc.date.available2013-05-21T15:47:31Z
dc.date.issued2011-10-18
dc.description.abstractSmall-scale entrepreneurs typically cite access to finance as the most important constraint to growth. Recent randomized experiments have shown the return to capital to be very high for the average microenterprise in Sri Lanka. An intervention was designed to improve access to credit among these high-return microenterprises without subsidizing interest rates or requiring group lending. The intervention consisted of information sessions providing details of the microfinance loan product offered by a regional development bank and a reduction from two to one in the number of personal guarantors required for these loans. Ten percent of the microenterprises invited to the information meetings received a new loan, doubling the proportion of firms receiving loans over this period. However, the loans do not appear to be going to particularly high-return firms but rather to firms with more household assets. Many more firms would like loans but are constrained by an inability to find personal guarantors and by other bureaucratic procedures. The results suggest that information alone is unlikely to be enough for most firms and point to the need for credit bureaus that cover microfinance loans and for continuing innovation in loan products that can reach the urban microenterprise sector.en
dc.identifier.citationWorld Bank Economic Review
dc.identifier.doi10.1596/13486
dc.identifier.issn1564-698X
dc.identifier.otherdoi:10.1093/wber/lhr023
dc.identifier.urihttps://hdl.handle.net/10986/13487
dc.language.isoen_US
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectaccess to credit
dc.subjectaccess to finance
dc.subjectbusiness owners
dc.subjectcredit bureaus
dc.subjectcredit needs
dc.subjectdevelopment bank
dc.subjectFinancial support
dc.subjectfinancial system
dc.subjectgroup lending
dc.subjectguarantors
dc.subjectinterest rate
dc.subjectinterest rates
dc.subjectInternational Bank
dc.subjectloan access
dc.subjectloan product
dc.subjectloan products
dc.subjectmicrofinance
dc.subjectmicrofinance loan
dc.subjectmicrofinance loans
dc.subjectSmall-scale entrepreneurs
dc.titleGetting Credit to High Return Microentrepreneurs : The Results of an Information Interventionen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.disclosure2013-04-18
okr.date.doiregistration2025-05-06T11:00:45.798381Z
okr.doctypeJournal Article
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.identifier.doi10.1093/wber/lhr023
okr.journal.nbpages456-485
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.countrySri Lanka
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicFinance and Financial Sector Development::Financial Literacy
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicIndustry
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.volume25(3)
relation.isAuthorOfPublication148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isAuthorOfPublication.latestForDiscovery148d6d6d-76e5-5d6f-9af9-98313e30551f
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relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublicatione0142101-3f2f-4335-8ea0-6dbed470dc64
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