Closing the gender profit gap?

Catia Batista, Sandra Sequeira and Pedro Vicente

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We examine the impact of providing access to mobile savings accounts and improving financial management skills on the performance of microenterprises in Mozambique. The effects are highly heterogeneous: Combining both types of support is associated with a large increase in both short- and long-term firm profits and in financial security for female microentrepreneurs. This allowed female-headed microenterprises, particularly those with a higher level of profits at baseline, to close the gender profit gap in performance and skills relative to their male counterparts. The main drivers of improved business performance are improved financial management practices (bookkeeping), an increase in accessible savings, and reduced transfers to friends and relatives. Providing access to mobile money as a tool to save and manage finances also increases long-term profits of female microentrepreneurs, particularly for those with higher profits at baseline. However, neither treatment has any impact on male-led enterprises. Uncovering this heterogeneity in impact across different types of microenterprises can help improve the targeting of these interventions in the future.

Keywords: economic development; financial literacy; gender; management; microenterprise development; mobile money (search for similar items in EconPapers)
JEL-codes: J16 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2022-12-01
New Economics Papers: this item is included in nep-fle, nep-hrm and nep-pay
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Published in Management Science, 1, December, 2022, 68(12), pp. 8553 - 8567. ISSN: 0025-1909

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http://eprints.lse.ac.uk/117712/ Open access version. (application/pdf)

Related works:
Journal Article: Closing the Gender Profit Gap? (2022)
Working Paper: Closing the Gender Profit Gap (2021)
Working Paper: Closing the Gender Profit Gap? (2021)
Working Paper: Closing the gender profit gap (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:117712

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