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‘Bang for buck’ in microfinance: Wellbeing mentorship or business education?

Edward N. Gamble

Journal of Business Venturing Insights, 2018, vol. 9, issue C, 137-144

Abstract: Within the microfinance literature, there is a growing interest in institutional logics. This paper explores ways that microfinance institutions can overcome the logic-tension of offering developmental programs and maintaining financial stability. First, I conduct a randomized control trial in Uganda to examine the financial and non-financial outcomes of loan recipients. Second, I use results from the field experiment, in a resource allocation model, to optimize the goals of a lending institution. I find that wellbeing mentorship, rather than business training, is the best ‘bang for buck’ when considering the interests of both the women entrepreneurs and the microfinance lending institution.

Keywords: Entrepreneurship; Microfinance; Poverty; Randomized control trial; Wellbeing mentorship (search for similar items in EconPapers)
Date: 2018
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