EconPapers    
Economics at your fingertips  
 

Closing the Gender Profit Gap?

Catia Batista, Sandra Sequeira and Pedro Vicente

No 14781, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine the impact of providing access to mobile savings accounts and improving financial management skills on the performance of female-led microenterprises in Mozambique. We find evidence that both interventions can improve business performance but 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 the microentrepreneur. This allowed female-headed microenterprises, particularly those with a higher baseline level of profits, 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. For female entrepreneurs with intermediate levels of profits at baseline, even just providing access to mobile money accounts can increase long-term profits and for the most disadvantaged microentrepreneurs it can at least in-crease levels of financial security. Uncovering this heterogeneity in impact within different types of female-led microenterprises can help improve the targeting of these interventions in the future.

Keywords: financial literacy; microenterprise development; management; gender; mobile money; economic development (search for similar items in EconPapers)
JEL-codes: G53 J16 O15 O16 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2021-10
New Economics Papers: this item is included in nep-dev, nep-edu, nep-ent, nep-fle, nep-hrm, nep-ict and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Management Science, 2022, 68 (12), 8515 - 9218,

Downloads: (external link)
https://docs.iza.org/dp14781.pdf (application/pdf)

Related works:
Journal Article: Closing the Gender Profit Gap? (2022) Downloads
Working Paper: Closing the gender profit gap? (2022) Downloads
Working Paper: Closing the Gender Profit Gap (2021) Downloads
Working Paper: Closing the gender profit gap (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp14781

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2024-06-12
Handle: RePEc:iza:izadps:dp14781