nep-mfd New Economics Papers
on Microfinance
Issue of 2020‒09‒14
three papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. EMPOWERING WOMEN THROUGH MICROFINANCE IN DJIBOUTI By Mohamed Abdallah Ali; Mazhar Mughal; Dina Chhorn
  2. The Role of Formal, Informal, and Family Credit in the Business Performance of Young Entrepreneurs in Benin By Djossou Gbetoton Nadege Author-Name: Jacob Novignon Author-Name: Atchade Touwédé Bénédicte Author-Name: Abdelkrim Araar
  3. Women Empowerment in Rural Bangladesh: The Role of Local Institutions By Ahasan, Rakibul; Hoda, Nazmul; Mudasser, Mehedi

  1. By: Mohamed Abdallah Ali (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau, CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour); Mazhar Mughal (ESC Pau); Dina Chhorn (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique, UNIL - Université de Lausanne)
    Date: 2020–09–01
  2. By: Djossou Gbetoton Nadege Author-Name: Jacob Novignon Author-Name: Atchade Touwédé Bénédicte Author-Name: Abdelkrim Araar
    Abstract: Young entrepreneurship is an important lever for economic growth and employment creation in developing countries. Credit uptake, however, continues to pose significant limitations to the sustainability of small-scale enterprises. We estimated the impact of credit uptake (formal, informal, and family) on young entrepreneurship performance in Benin, using 2014-2016 panel data from a World Bank survey on enterprise formalization. To address potential endogeneity and ensure robustness of results, we employed multiple models and estimation techniques (fixed-effects and Lewbel approach). Our results showed that, while formal credit was most important for larger firms, smaller firms benefited mainly from flexible (informal or family) credit. The impact of credit uptake was generally higher for women-owned firms. There were also variations in uptake according to firm owner’s age: the impact of formal credit was relatively higher for older firm owners while younger owners benefited more from flexible credit. The findings highlight the importance of Informal and family credit sources, especially for start-ups and small firms.
    Keywords: Youth Entrepreneurship, Microcredit, Small-scale Enterprises, Benin
    JEL: D20 O12 O17
    Date: 2020
  3. By: Ahasan, Rakibul (Texas A&M University); Hoda, Nazmul; Mudasser, Mehedi
    Abstract: Similar to the rest of the world, women empowerment in rural Bangladesh is growing as one of the most critical issues need answering very soon. Several attempts have been undertaken by different government organizations, local government institutions, and non-government organizations in recent years to empower the women in various facets- social, economic and political for the least. The objective of this paper was to evaluate the women empowerment status in a rural area in Khulna district, Bangladesh. Physical surveys were conducted among the households in the Chakrakhali village under Jalma Union in Batiaghata Upazilla of Khulna district. The samples were randomly drawn from the families in the area irrespective of economic, social or religious characteristics. All the respondents were adult women- either the household head of women lead household or the housewife of the family. The social, economic, and political empowerment status of the women in the village was evaluated through the study. The findings from the survey indicate the women are empowered mostly in the economic realm, followed by social empowerment. The political empowerment of the women of that village found to be absent in most cases. The survey results also indicated that the household heads hinder the political and social empowerment status of the women in a male-lead household. In these types of families, despite the monetary or other supports form the institutions is delivered to the women, they are not the own making the decisions. It is found that a lot of the choices of the women are influenced by the household head, mainly to borrow money from micro-credit organizations. The understanding between government organizations and women are not in good shape as women are not interested in the functions of these organizations in most of the cases. Mainly the non-government organizations (i.e., CSS, BUREAU Bangladesh, ASA, PROSHIKA, BRAC, Grameen Bank, etc.) work for the villagers, and women are more concerned about the activities of these institutions. However, it was found from the study that women are not being benefitted and mainstreamed through empowerment activities by these institutions.
    Date: 2020–08–11

This nep-mfd issue is ©2020 by Aastha Pudasainee and Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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