Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan
This paper identifies the relative importance of human and physical capital for entrepreneurship. A subset of rural microfinance clients were offered eight full time days of business training and the opportunity to participate in a loan lottery of up to Rs. 100,000 (USD 1,700), about seven times the average loan size. The study finds that business training increased business knowledge, reduced business failure, improved business practices and increased household expenditures by about $40 per year. It also improved financial and labor allocation decisions. These effects are concentrated among male clients, however. Women improve business knowledge but show no improvements in other outcomes. A cost-benefit analysis suggests that business training was not cost-effective for the microfinance institution, despite having a positive impact on clients. This may explain why so few microfinance institutions offer training. Access to the larger loan, in contrast, had little effect, indicating that existing loan size limits may already meet the demand for credit for these clients.
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dig-okr-1098619367 |
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koha |
institution |
Banco Mundial |
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country |
Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
language |
English en_US |
topic |
ACCESS TO CAPITAL ACCESS TO CREDIT ACCOUNTING ACCOUNTS ADMINISTRATIVE RECORDS ADVERTISING AGRICULTURAL ACTIVITIES BALANCE SHEET BANK ACCOUNT BANK DEPOSIT BANK OFFICE BOOKKEEPING BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS CREATION BUSINESS DECISIONS BUSINESS ENTRY BUSINESS EXPERIENCE BUSINESS FAILURE BUSINESS FAILURES BUSINESS IDEAS BUSINESS NEEDS BUSINESS OPERATIONS BUSINESS OWNER BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS PLAN BUSINESS PLANNING BUSINESS SECTOR BUSINESS SKILLS BUSINESS SUCCESS BUSINESS SURVIVAL BUSINESS TRAINING BUSINESS WOMEN BUYER BUYERS CAPACITY BUILDING CAPITAL INJECTIONS CAPITAL MARKET CAPITAL REQUIREMENTS COMMERCE COMPUTER LITERACY COST ANALYSIS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT HISTORY CREDIT OFFICERS CREDIT PRODUCTS CULTURAL NORMS CUSTOMER LOYALTY DEMAND FOR CREDIT DISTRIBUTION SYSTEMS EMPLOYEE EMPOWERMENT ENTREPRENEURIAL ABILITY EQUIPMENT EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FEMALE BORROWERS FEMALE BUSINESSES FEMALE CLIENT FEMALE CLIENTS FEMALE ENTERPRISE FEMALE ENTREPRENEUR FEMALE ENTREPRENEURS FEMALE ENTREPRENEURSHIP FINANCIAL CAPITAL FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MANAGEMENT FINANCIAL RESOURCES FIXED ASSETS FIXED COST GENDER GENDER DIFFERENCES GENDER EQUITY GENDERS GROUPS OF BORROWERS GUARANTORS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS HUSBAND HUSBANDS INFORMAL ECONOMY INITIAL LOAN INNOVATION INNOVATION POLICY INSTALLMENT INSTALLMENTS INTEREST RATE INTERNATIONAL BANK INVENTORY JOINT LIABILITY LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LENDER LENDERS LICENSE LIVESTOCK LOAN LIVESTOCK LOANS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICANTS LOAN DEFAULT LOAN DEMAND LOAN PAYMENTS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REQUESTS LOAN SIZE LOAN SIZES MANUFACTURING MARKETING MATERIAL MICRO BUSINESS MICRO ENTREPRENEURS MICRO FINANCE MICRO-CREDIT MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MORAL HAZARD NEW BUSINESS NEW BUSINESSES OPEN ACCESS OUTSTANDING DEBT OUTSTANDING LOAN PERSONAL COMPETENCIES PHYSICAL CAPITAL POOR ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT DESIGN PRODUCTIVITY PROFITABILITY PROTOCOLS RECEIPTS REPAYMENT REPORTING RESULT RESULTS SAFETY NET SALES SAVINGS SELF-EMPLOYMENT SELF-HELP SHADOW ECONOMIES START-UP TIME PERIOD TRAINING COURSE TRAINING COURSES URBAN AREAS USERS USES VILLAGE WEB WOMAN WOMEN BUSINESS OWNERS WOMEN ENTREPRENEURS ACCESS TO CAPITAL ACCESS TO CREDIT ACCOUNTING ACCOUNTS ADMINISTRATIVE RECORDS ADVERTISING AGRICULTURAL ACTIVITIES BALANCE SHEET BANK ACCOUNT BANK DEPOSIT BANK OFFICE BOOKKEEPING BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS CREATION BUSINESS DECISIONS BUSINESS ENTRY BUSINESS EXPERIENCE BUSINESS FAILURE BUSINESS FAILURES BUSINESS IDEAS BUSINESS NEEDS BUSINESS OPERATIONS BUSINESS OWNER BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS PLAN BUSINESS PLANNING BUSINESS SECTOR BUSINESS SKILLS BUSINESS SUCCESS BUSINESS SURVIVAL BUSINESS TRAINING BUSINESS WOMEN BUYER BUYERS CAPACITY BUILDING CAPITAL INJECTIONS CAPITAL MARKET CAPITAL REQUIREMENTS COMMERCE COMPUTER LITERACY COST ANALYSIS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT HISTORY CREDIT OFFICERS CREDIT PRODUCTS CULTURAL NORMS CUSTOMER LOYALTY DEMAND FOR CREDIT DISTRIBUTION SYSTEMS EMPLOYEE EMPOWERMENT ENTREPRENEURIAL ABILITY EQUIPMENT EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FEMALE BORROWERS FEMALE BUSINESSES FEMALE CLIENT FEMALE CLIENTS FEMALE ENTERPRISE FEMALE ENTREPRENEUR FEMALE ENTREPRENEURS FEMALE ENTREPRENEURSHIP FINANCIAL CAPITAL FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MANAGEMENT FINANCIAL RESOURCES FIXED ASSETS FIXED COST GENDER GENDER DIFFERENCES GENDER EQUITY GENDERS GROUPS OF BORROWERS GUARANTORS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS HUSBAND HUSBANDS INFORMAL ECONOMY INITIAL LOAN INNOVATION INNOVATION POLICY INSTALLMENT INSTALLMENTS INTEREST RATE INTERNATIONAL BANK INVENTORY JOINT LIABILITY LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LENDER LENDERS LICENSE LIVESTOCK LOAN LIVESTOCK LOANS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICANTS LOAN DEFAULT LOAN DEMAND LOAN PAYMENTS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REQUESTS LOAN SIZE LOAN SIZES MANUFACTURING MARKETING MATERIAL MICRO BUSINESS MICRO ENTREPRENEURS MICRO FINANCE MICRO-CREDIT MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MORAL HAZARD NEW BUSINESS NEW BUSINESSES OPEN ACCESS OUTSTANDING DEBT OUTSTANDING LOAN PERSONAL COMPETENCIES PHYSICAL CAPITAL POOR ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT DESIGN PRODUCTIVITY PROFITABILITY PROTOCOLS RECEIPTS REPAYMENT REPORTING RESULT RESULTS SAFETY NET SALES SAVINGS SELF-EMPLOYMENT SELF-HELP SHADOW ECONOMIES START-UP TIME PERIOD TRAINING COURSE TRAINING COURSES URBAN AREAS USERS USES VILLAGE WEB WOMAN WOMEN BUSINESS OWNERS WOMEN ENTREPRENEURS |
spellingShingle |
ACCESS TO CAPITAL ACCESS TO CREDIT ACCOUNTING ACCOUNTS ADMINISTRATIVE RECORDS ADVERTISING AGRICULTURAL ACTIVITIES BALANCE SHEET BANK ACCOUNT BANK DEPOSIT BANK OFFICE BOOKKEEPING BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS CREATION BUSINESS DECISIONS BUSINESS ENTRY BUSINESS EXPERIENCE BUSINESS FAILURE BUSINESS FAILURES BUSINESS IDEAS BUSINESS NEEDS BUSINESS OPERATIONS BUSINESS OWNER BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS PLAN BUSINESS PLANNING BUSINESS SECTOR BUSINESS SKILLS BUSINESS SUCCESS BUSINESS SURVIVAL BUSINESS TRAINING BUSINESS WOMEN BUYER BUYERS CAPACITY BUILDING CAPITAL INJECTIONS CAPITAL MARKET CAPITAL REQUIREMENTS COMMERCE COMPUTER LITERACY COST ANALYSIS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT HISTORY CREDIT OFFICERS CREDIT PRODUCTS CULTURAL NORMS CUSTOMER LOYALTY DEMAND FOR CREDIT DISTRIBUTION SYSTEMS EMPLOYEE EMPOWERMENT ENTREPRENEURIAL ABILITY EQUIPMENT EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FEMALE BORROWERS FEMALE BUSINESSES FEMALE CLIENT FEMALE CLIENTS FEMALE ENTERPRISE FEMALE ENTREPRENEUR FEMALE ENTREPRENEURS FEMALE ENTREPRENEURSHIP FINANCIAL CAPITAL FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MANAGEMENT FINANCIAL RESOURCES FIXED ASSETS FIXED COST GENDER GENDER DIFFERENCES GENDER EQUITY GENDERS GROUPS OF BORROWERS GUARANTORS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS HUSBAND HUSBANDS INFORMAL ECONOMY INITIAL LOAN INNOVATION INNOVATION POLICY INSTALLMENT INSTALLMENTS INTEREST RATE INTERNATIONAL BANK INVENTORY JOINT LIABILITY LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LENDER LENDERS LICENSE LIVESTOCK LOAN LIVESTOCK LOANS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICANTS LOAN DEFAULT LOAN DEMAND LOAN PAYMENTS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REQUESTS LOAN SIZE LOAN SIZES MANUFACTURING MARKETING MATERIAL MICRO BUSINESS MICRO ENTREPRENEURS MICRO FINANCE MICRO-CREDIT MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MORAL HAZARD NEW BUSINESS NEW BUSINESSES OPEN ACCESS OUTSTANDING DEBT OUTSTANDING LOAN PERSONAL COMPETENCIES PHYSICAL CAPITAL POOR ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT DESIGN PRODUCTIVITY PROFITABILITY PROTOCOLS RECEIPTS REPAYMENT REPORTING RESULT RESULTS SAFETY NET SALES SAVINGS SELF-EMPLOYMENT SELF-HELP SHADOW ECONOMIES START-UP TIME PERIOD TRAINING COURSE TRAINING COURSES URBAN AREAS USERS USES VILLAGE WEB WOMAN WOMEN BUSINESS OWNERS WOMEN ENTREPRENEURS ACCESS TO CAPITAL ACCESS TO CREDIT ACCOUNTING ACCOUNTS ADMINISTRATIVE RECORDS ADVERTISING AGRICULTURAL ACTIVITIES BALANCE SHEET BANK ACCOUNT BANK DEPOSIT BANK OFFICE BOOKKEEPING BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS CREATION BUSINESS DECISIONS BUSINESS ENTRY BUSINESS EXPERIENCE BUSINESS FAILURE BUSINESS FAILURES BUSINESS IDEAS BUSINESS NEEDS BUSINESS OPERATIONS BUSINESS OWNER BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS PLAN BUSINESS PLANNING BUSINESS SECTOR BUSINESS SKILLS BUSINESS SUCCESS BUSINESS SURVIVAL BUSINESS TRAINING BUSINESS WOMEN BUYER BUYERS CAPACITY BUILDING CAPITAL INJECTIONS CAPITAL MARKET CAPITAL REQUIREMENTS COMMERCE COMPUTER LITERACY COST ANALYSIS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT HISTORY CREDIT OFFICERS CREDIT PRODUCTS CULTURAL NORMS CUSTOMER LOYALTY DEMAND FOR CREDIT DISTRIBUTION SYSTEMS EMPLOYEE EMPOWERMENT ENTREPRENEURIAL ABILITY EQUIPMENT EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FEMALE BORROWERS FEMALE BUSINESSES FEMALE CLIENT FEMALE CLIENTS FEMALE ENTERPRISE FEMALE ENTREPRENEUR FEMALE ENTREPRENEURS FEMALE ENTREPRENEURSHIP FINANCIAL CAPITAL FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MANAGEMENT FINANCIAL RESOURCES FIXED ASSETS FIXED COST GENDER GENDER DIFFERENCES GENDER EQUITY GENDERS GROUPS OF BORROWERS GUARANTORS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS HUSBAND HUSBANDS INFORMAL ECONOMY INITIAL LOAN INNOVATION INNOVATION POLICY INSTALLMENT INSTALLMENTS INTEREST RATE INTERNATIONAL BANK INVENTORY JOINT LIABILITY LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LENDER LENDERS LICENSE LIVESTOCK LOAN LIVESTOCK LOANS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICANTS LOAN DEFAULT LOAN DEMAND LOAN PAYMENTS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REQUESTS LOAN SIZE LOAN SIZES MANUFACTURING MARKETING MATERIAL MICRO BUSINESS MICRO ENTREPRENEURS MICRO FINANCE MICRO-CREDIT MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MORAL HAZARD NEW BUSINESS NEW BUSINESSES OPEN ACCESS OUTSTANDING DEBT OUTSTANDING LOAN PERSONAL COMPETENCIES PHYSICAL CAPITAL POOR ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT DESIGN PRODUCTIVITY PROFITABILITY PROTOCOLS RECEIPTS REPAYMENT REPORTING RESULT RESULTS SAFETY NET SALES SAVINGS SELF-EMPLOYMENT SELF-HELP SHADOW ECONOMIES START-UP TIME PERIOD TRAINING COURSE TRAINING COURSES URBAN AREAS USERS USES VILLAGE WEB WOMAN WOMEN BUSINESS OWNERS WOMEN ENTREPRENEURS Gine, Xavier Mansuri, Ghazala Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan |
description |
This paper identifies the relative
importance of human and physical capital for
entrepreneurship. A subset of rural microfinance clients
were offered eight full time days of business training and
the opportunity to participate in a loan lottery of up to
Rs. 100,000 (USD 1,700), about seven times the average loan
size. The study finds that business training increased
business knowledge, reduced business failure, improved
business practices and increased household expenditures by
about $40 per year. It also improved financial and labor
allocation decisions. These effects are concentrated among
male clients, however. Women improve business knowledge but
show no improvements in other outcomes. A cost-benefit
analysis suggests that business training was not
cost-effective for the microfinance institution, despite
having a positive impact on clients. This may explain why so
few microfinance institutions offer training. Access to the
larger loan, in contrast, had little effect, indicating that
existing loan size limits may already meet the demand for
credit for these clients. |
topic_facet |
ACCESS TO CAPITAL ACCESS TO CREDIT ACCOUNTING ACCOUNTS ADMINISTRATIVE RECORDS ADVERTISING AGRICULTURAL ACTIVITIES BALANCE SHEET BANK ACCOUNT BANK DEPOSIT BANK OFFICE BOOKKEEPING BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS CREATION BUSINESS DECISIONS BUSINESS ENTRY BUSINESS EXPERIENCE BUSINESS FAILURE BUSINESS FAILURES BUSINESS IDEAS BUSINESS NEEDS BUSINESS OPERATIONS BUSINESS OWNER BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS PLAN BUSINESS PLANNING BUSINESS SECTOR BUSINESS SKILLS BUSINESS SUCCESS BUSINESS SURVIVAL BUSINESS TRAINING BUSINESS WOMEN BUYER BUYERS CAPACITY BUILDING CAPITAL INJECTIONS CAPITAL MARKET CAPITAL REQUIREMENTS COMMERCE COMPUTER LITERACY COST ANALYSIS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT HISTORY CREDIT OFFICERS CREDIT PRODUCTS CULTURAL NORMS CUSTOMER LOYALTY DEMAND FOR CREDIT DISTRIBUTION SYSTEMS EMPLOYEE EMPOWERMENT ENTREPRENEURIAL ABILITY EQUIPMENT EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FEMALE BORROWERS FEMALE BUSINESSES FEMALE CLIENT FEMALE CLIENTS FEMALE ENTERPRISE FEMALE ENTREPRENEUR FEMALE ENTREPRENEURS FEMALE ENTREPRENEURSHIP FINANCIAL CAPITAL FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MANAGEMENT FINANCIAL RESOURCES FIXED ASSETS FIXED COST GENDER GENDER DIFFERENCES GENDER EQUITY GENDERS GROUPS OF BORROWERS GUARANTORS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS HUSBAND HUSBANDS INFORMAL ECONOMY INITIAL LOAN INNOVATION INNOVATION POLICY INSTALLMENT INSTALLMENTS INTEREST RATE INTERNATIONAL BANK INVENTORY JOINT LIABILITY LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LENDER LENDERS LICENSE LIVESTOCK LOAN LIVESTOCK LOANS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICANTS LOAN DEFAULT LOAN DEMAND LOAN PAYMENTS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REQUESTS LOAN SIZE LOAN SIZES MANUFACTURING MARKETING MATERIAL MICRO BUSINESS MICRO ENTREPRENEURS MICRO FINANCE MICRO-CREDIT MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MORAL HAZARD NEW BUSINESS NEW BUSINESSES OPEN ACCESS OUTSTANDING DEBT OUTSTANDING LOAN PERSONAL COMPETENCIES PHYSICAL CAPITAL POOR ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT DESIGN PRODUCTIVITY PROFITABILITY PROTOCOLS RECEIPTS REPAYMENT REPORTING RESULT RESULTS SAFETY NET SALES SAVINGS SELF-EMPLOYMENT SELF-HELP SHADOW ECONOMIES START-UP TIME PERIOD TRAINING COURSE TRAINING COURSES URBAN AREAS USERS USES VILLAGE WEB WOMAN WOMEN BUSINESS OWNERS WOMEN ENTREPRENEURS |
author |
Gine, Xavier Mansuri, Ghazala |
author_facet |
Gine, Xavier Mansuri, Ghazala |
author_sort |
Gine, Xavier |
title |
Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan |
title_short |
Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan |
title_full |
Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan |
title_fullStr |
Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan |
title_full_unstemmed |
Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan |
title_sort |
money or ideas? a field experiment on constraints to entrepreneurship in rural pakistan |
publisher |
World Bank, Washington, DC |
publishDate |
2014-06 |
url |
http://documents.worldbank.org/curated/en/2014/06/19749952/money-or-ideas-field-experiment-constraints-entrepreneurship-rural-pakistan https://hdl.handle.net/10986/19367 |
work_keys_str_mv |
AT ginexavier moneyorideasafieldexperimentonconstraintstoentrepreneurshipinruralpakistan AT mansurighazala moneyorideasafieldexperimentonconstraintstoentrepreneurshipinruralpakistan |
_version_ |
1807158345950298112 |
spelling |
dig-okr-10986193672024-08-08T13:53:46Z Money or Ideas? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan Gine, Xavier Mansuri, Ghazala ACCESS TO CAPITAL ACCESS TO CREDIT ACCOUNTING ACCOUNTS ADMINISTRATIVE RECORDS ADVERTISING AGRICULTURAL ACTIVITIES BALANCE SHEET BANK ACCOUNT BANK DEPOSIT BANK OFFICE BOOKKEEPING BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS CREATION BUSINESS DECISIONS BUSINESS ENTRY BUSINESS EXPERIENCE BUSINESS FAILURE BUSINESS FAILURES BUSINESS IDEAS BUSINESS NEEDS BUSINESS OPERATIONS BUSINESS OWNER BUSINESS OWNERSHIP BUSINESS PERFORMANCE BUSINESS PLAN BUSINESS PLANNING BUSINESS SECTOR BUSINESS SKILLS BUSINESS SUCCESS BUSINESS SURVIVAL BUSINESS TRAINING BUSINESS WOMEN BUYER BUYERS CAPACITY BUILDING CAPITAL INJECTIONS CAPITAL MARKET CAPITAL REQUIREMENTS COMMERCE COMPUTER LITERACY COST ANALYSIS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT HISTORY CREDIT OFFICERS CREDIT PRODUCTS CULTURAL NORMS CUSTOMER LOYALTY DEMAND FOR CREDIT DISTRIBUTION SYSTEMS E-MAIL EMPLOYEE EMPOWERMENT ENTREPRENEURIAL ABILITY EQUIPMENT EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FEMALE BORROWERS FEMALE BUSINESSES FEMALE CLIENT FEMALE CLIENTS FEMALE ENTERPRISE FEMALE ENTREPRENEUR FEMALE ENTREPRENEURS FEMALE ENTREPRENEURSHIP FINANCIAL CAPITAL FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MANAGEMENT FINANCIAL RESOURCES FIXED ASSETS FIXED COST GENDER GENDER DIFFERENCES GENDER EQUITY GENDERS GROUPS OF BORROWERS GUARANTORS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS HUSBAND HUSBANDS INFORMAL ECONOMY INITIAL LOAN INNOVATION INNOVATION POLICY INSTALLMENT INSTALLMENTS INTEREST RATE INTERNATIONAL BANK INVENTORY JOINT LIABILITY LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LENDER LENDERS LICENSE LIVESTOCK LOAN LIVESTOCK LOANS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICANTS LOAN DEFAULT LOAN DEMAND LOAN PAYMENTS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REQUESTS LOAN SIZE LOAN SIZES MANUFACTURING MARKETING MATERIAL MICRO BUSINESS MICRO ENTREPRENEURS MICRO FINANCE MICRO-CREDIT MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MORAL HAZARD NEW BUSINESS NEW BUSINESSES OPEN ACCESS OUTSTANDING DEBT OUTSTANDING LOAN PERSONAL COMPETENCIES PHYSICAL CAPITAL POOR ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT DESIGN PRODUCTIVITY PROFITABILITY PROTOCOLS RECEIPTS REPAYMENT REPORTING RESULT RESULTS SAFETY NET SALES SAVINGS SELF-EMPLOYMENT SELF-HELP SHADOW ECONOMIES START-UP TIME PERIOD TRAINING COURSE TRAINING COURSES URBAN AREAS USERS USES VILLAGE WEB WOMAN WOMEN BUSINESS OWNERS WOMEN ENTREPRENEURS This paper identifies the relative importance of human and physical capital for entrepreneurship. A subset of rural microfinance clients were offered eight full time days of business training and the opportunity to participate in a loan lottery of up to Rs. 100,000 (USD 1,700), about seven times the average loan size. The study finds that business training increased business knowledge, reduced business failure, improved business practices and increased household expenditures by about $40 per year. It also improved financial and labor allocation decisions. These effects are concentrated among male clients, however. Women improve business knowledge but show no improvements in other outcomes. A cost-benefit analysis suggests that business training was not cost-effective for the microfinance institution, despite having a positive impact on clients. This may explain why so few microfinance institutions offer training. Access to the larger loan, in contrast, had little effect, indicating that existing loan size limits may already meet the demand for credit for these clients. 2014-08-15T17:02:19Z 2014-08-15T17:02:19Z 2014-06 http://documents.worldbank.org/curated/en/2014/06/19749952/money-or-ideas-field-experiment-constraints-entrepreneurship-rural-pakistan https://hdl.handle.net/10986/19367 English en_US Policy Research Working Paper;No. 6959 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ application/pdf text/plain World Bank, Washington, DC |