Subgroup Analysis of Investment Constraints: Evidence from Ugandan Microenterprises

Helke Seitz

No 1920, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This study examines the effect of a soft commitment device in the form of a savings goal calendar on savings for small business owners in Kampala, Uganda. We run a randomized controlled trial (RCT) under which the treatment group receives a calendar designed to set savings goals and to make a plan to reach this goal. The control group is given a plain calendar. We find no average effect on savings, but show that present-biased individuals save more when given the calendar. Further examinations indicate that present-biased individuals are more likely to use the calendar, suggesting that, in line with theory, present-biased individuals have a demand.

Keywords: Entrepreneurship; investment; credit constraints; savings constraints; managerial constraints (search for similar items in EconPapers)
JEL-codes: D22 D25 O12 O16 (search for similar items in EconPapers)
Pages: 48 p.
Date: 2020
New Economics Papers: this item is included in nep-dev, nep-ent, nep-exp, nep-fdg and nep-mfd
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