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Human and Financial Capital for Microenterprise Development: Evidence from a Field and Lab Experiment

Jan 01, 2011 | L.I.O. Berge, K. Bjorvatn, B. Tungodden | Chr. Michelsen Institute - CMI

The present study is the first field experiment that jointly investigates the financial and human capital constraints for poor micro entrepreneurs. In collaboration with the largest microfinance institution in Tanzania, Promotion of Rural Initiatives and Development Enterprise (PRIDE), the authors introduced separate treatments offering business training and a business grant of similar size to the cost of training, which allows them to investigate the relative importance of the human and financial capital constraints for microenterprise development.