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on Microfinance |
| By: | Isaga, Nsubili; Gafni, Hadar; Ndaki, Pascal Daudi; Garofalo, Orsola; Jeppesen, Lars Bo; Petro, Hawa; Zunino, Diego |
| Abstract: | Resource acquisition is a fundamental entrepreneurial task, where entrepreneurs must persuade resource provider with a pitch. While opportunity entrepreneurs in developed countries have access to multiple sources of finance, necessity entrepreneurs in developing countries find themselves much more constrained. Prosocial crowdfunding has emerged as a viable solution, but these platforms are often intermediated by microfinance institutions and other actors, who craft the pitches on behalf of entrepreneurs and drive up the cost of credit. We investigate whether necessity entrepreneurs can craft an effective pitch with minimal instructions and raise funds in a prosocial crowdfunding setting. We introduced a platform specialized in direct lending (instead of intermediated lending) in Tanzania and ran a randomized control trial across seven locations. The control group learned about the existence of the crowdfunding platform and received only basic instructions about the structure of the pitch; the treatment group was also informed about the predictors of a successful pitch according to crowdfunding research. Our results suggest that the training increased the probability of success by 15.6% and the fundraising speed by 11.5%. Entrepreneurs in the treatment group were 45% more likely to repay their debt and interact on the platform through comments. We detected differential rates in posting the pitch on the platform, which do not allow us to rule out that the results can be explained by the treatment discouraging less able entrepreneurs to seek funds. We discuss these results in terms of training how to pitch as well as governance of prosocial crowdfunding platforms. |
| Keywords: | Crowdfunding; Randomized control trials; Necessity Entrepreneurship; Entrepreneurial Pitching; Microfinance |
| JEL: | L26 O16 G21 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20352 |
| By: | D'Andrea, Angelo; Hitayezu, Patrick; Kpodar, Kangni; Limodio, Nicola; Presbitero, Andrea |
| Abstract: | Combining administrative data on credit, mortgages, and construction in Rwanda, this paper shows that technology helps overcome imperfections in property rights and foster the development of the mortgage market. Exploiting quasi-experimental variation in 3G internet coverage and a land title reform, we find that mobile connectivity shifts borrowers from microfinance to banks. 3G internet facilitates the distribution of land titles, which borrowers use as collateral for bank loans and mortgages, thus promoting household investment in real estate. A mediation analysis and structural estimation reveal that the property rights channel accounts for 30–37% of the effect of mobile internet on bank lending and 75–80% of the effect on collateralized loans. |
| Keywords: | Mortgage; Banks; Credit |
| JEL: | G21 G23 O33 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20746 |
| By: | Khondaker Golam Moazzem; Faisal Quaiyyum; Abrar Ahammed Bhuiyan |
| Abstract: | Access to finance in Bangladesh’s agricultural mechanization sector is shaped by stakeholders’ preferences for alternative financial instruments. Local producers face the greatest financial constraints, primarily due to double taxation on raw materials and product sales. Survey results from 196 respondents show strong preference for asset-based finance and machine leasing, while other instruments remain largely underutilized. Econometric analysis reveals that education, financial literacy, government support, and firm characteristics significantly influence adoption. |
| Keywords: | Agricultural Mechanization, Access Finance, Financial Instruments, Machine Leasing, Asset Finance, Financial Inclusion, Financial Literacy, Government Support, Supply Chain, Bangladesh Agriculture |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:report:76 |