Gine, XavierMansuri, Ghazala2014-08-152014-08-152014-06https://hdl.handle.net/10986/19367This paper identifies the relative importance of human and physical capital for entrepreneurship. A subset of rural microfinance clients were offered eight full time days of business training and the opportunity to participate in a loan lottery of up to Rs. 100,000 (USD 1,700), about seven times the average loan size. The study finds that business training increased business knowledge, reduced business failure, improved business practices and increased household expenditures by about $40 per year. It also improved financial and labor allocation decisions. These effects are concentrated among male clients, however. Women improve business knowledge but show no improvements in other outcomes. A cost-benefit analysis suggests that business training was not cost-effective for the microfinance institution, despite having a positive impact on clients. This may explain why so few microfinance institutions offer training. Access to the larger loan, in contrast, had little effect, indicating that existing loan size limits may already meet the demand for credit for these clients.en-USCC BY 3.0 IGOACCESS TO CAPITALACCESS TO CREDITACCOUNTINGACCOUNTSADMINISTRATIVE RECORDSADVERTISINGAGRICULTURAL ACTIVITIESBALANCE SHEETBANK ACCOUNTBANK DEPOSITBANK OFFICEBOOKKEEPINGBORROWERBORROWINGBUSINESS ACTIVITIESBUSINESS CREATIONBUSINESS DECISIONSBUSINESS ENTRYBUSINESS EXPERIENCEBUSINESS FAILUREBUSINESS FAILURESBUSINESS IDEASBUSINESS NEEDSBUSINESS OPERATIONSBUSINESS OWNERBUSINESS OWNERSHIPBUSINESS PERFORMANCEBUSINESS PLANBUSINESS PLANNINGBUSINESS SECTORBUSINESS SKILLSBUSINESS SUCCESSBUSINESS SURVIVALBUSINESS TRAININGBUSINESS WOMENBUYERBUYERSCAPACITY BUILDINGCAPITAL INJECTIONSCAPITAL MARKETCAPITAL REQUIREMENTSCOMMERCECOMPUTER LITERACYCOST ANALYSISCREDIT CONSTRAINTCREDIT CONSTRAINTSCREDIT DECISIONSCREDIT HISTORYCREDIT OFFICERSCREDIT PRODUCTSCULTURAL NORMSCUSTOMER LOYALTYDEMAND FOR CREDITDISTRIBUTION SYSTEMSE-MAILEMPLOYEEEMPOWERMENTENTREPRENEURIAL ABILITYEQUIPMENTEXCHANGE RATEEXPENDITUREEXPENDITURESFAMILIESFARM ENTERPRISEFARM ENTERPRISESFEMALE BORROWERSFEMALE BUSINESSESFEMALE CLIENTFEMALE CLIENTSFEMALE ENTERPRISEFEMALE ENTREPRENEURFEMALE ENTREPRENEURSFEMALE ENTREPRENEURSHIPFINANCIAL CAPITALFINANCIAL INSTITUTIONSFINANCIAL LIBERALIZATIONFINANCIAL LITERACYFINANCIAL MANAGEMENTFINANCIAL RESOURCESFIXED ASSETSFIXED COSTGENDERGENDER DIFFERENCESGENDER EQUITYGENDERSGROUPS OF BORROWERSGUARANTORSHANDICRAFTSHOUSEHOLD INCOMEHOUSEHOLD WELFAREHOUSEHOLDSHUSBANDHUSBANDSINFORMAL ECONOMYINITIAL LOANINNOVATIONINNOVATION POLICYINSTALLMENTINSTALLMENTSINTEREST RATEINTERNATIONAL BANKINVENTORYJOINT LIABILITYLABOR FORCE PARTICIPATIONLABOR MARKETLABOR MARKETSLENDERLENDERSLICENSELIVESTOCK LOANLIVESTOCK LOANSLOANLOAN AMOUNTLOAN AMOUNTSLOAN APPLICANTSLOAN DEFAULTLOAN DEMANDLOAN PAYMENTSLOAN PRODUCTSLOAN REPAYMENTLOAN REPAYMENT RATESLOAN REQUESTSLOAN SIZELOAN SIZESMANUFACTURINGMARKETINGMATERIALMICRO BUSINESSMICRO ENTREPRENEURSMICRO FINANCEMICRO-CREDITMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMORAL HAZARDNEW BUSINESSNEW BUSINESSESOPEN ACCESSOUTSTANDING DEBTOUTSTANDING LOANPERSONAL COMPETENCIESPHYSICAL CAPITALPOOR ACCESSPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRODUCT DESIGNPRODUCTIVITYPROFITABILITYPROTOCOLSRECEIPTSREPAYMENTREPORTINGRESULTRESULTSSAFETY NETSALESSAVINGSSELF-EMPLOYMENTSELF-HELPSHADOW ECONOMIESSTART-UPTIME PERIODTRAINING COURSETRAINING COURSESURBAN AREASUSERSUSESVILLAGEWEBWOMANWOMEN BUSINESS OWNERSWOMEN ENTREPRENEURS10.1596/1813-9450-6959