Arnoldshain Seminar XV
“The EU and Latin America Facing Globalization”
September 4 – 6, 2017
Vienna


   
Garcia Pires, Armando Jose, Norwegian School of Economics, and Lars Ivar Oppedal Berge, Gender and Entrepreneurial Success: Evidence from a Field Experiment.
A number of field experiments on business training and business grants in developing countries shows that it is much more difficult to improve business outcomes for women than for men entrepreneurs. Similarly, several empirical studies in developing countries find that it is very challenging to increase the entrepreneurial performance of firms in the informal sector. We build on theoretical predictions derived from Lucas (1978) model of entrepreneurship, to look at these two puzzles. First, if women entrepreneurs in addition to being constrained in business ability and access to capital are also time constrained, interventions that only target business ability and credit constraints might not be sufficient. Second, if informal entrepreneurs face business constrains on access to credit and entrepreneurial ability, interventions that target these two constrains can have a positive impact on them (and more so than for formal entrepreneurs). These theoretical predictions are supported with data from a field experiment in Tanzania with microfinance