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Impact of Credit and Training on Enterprise Performance: Evidence from Urban Ethiopia

Abdelkrim Araar, Yesuf Mohammednur Awel, Jonse Bane Boka, Hiywot Menker, Ajebush Shafi, Eleni Yitbarek and Mulatu Zerihun

Working Papers PMMA from PEP-PMMA

Abstract: This study evaluates the impact of business-development-support programs (credit, training, and a combination of both) on the performance of micro- and small enterprises (MSEs) in Ethiopia. Using 2015 Ethiopian urban survey data and employing endogenous-switching regressions for multiple treatments, we document a positive and significant effect of credit, training, and a combination of training and credit on MSEs. Our results highlight the heterogeneity in treatment effects between women- and men-owned MSEs: women-owned businesses do not benefit from access to treatments. Our results suggest that improving the performance of MSEs requires fine-tuned interventions that meet the specific needs of men and women who own small businesses rather than one-size-fits-all programs.

Keywords: Treatment effects; MSEs; Ethiopia (search for similar items in EconPapers)
JEL-codes: C31 J16 M21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-ent, nep-mfd and nep-sbm
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:pmmacr:2019-13

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