PIERI-12451 Beyond Technical Skills Training: The impact of Credit Counselling on Entrepreneurial Behavior of Ugandan Youth
There is a low financial credit take among youth in Uganda because potential beneficiaries perceive the associated risk as high. This study assesses the determinants of entrepreneurial risk tolerance among Ugandan youth using experimental data from a randomised control trial and a real-life investment risk experiment. The study entails credit-counselling for young men and women aged 18-35 years who own a business enlightening them about the obligations and commitments associated with financial credit. The intervention has a significant impact on demand for credit and related intermediate outcomes such as ownership of a bank account and investment in assets. The study finds that the youth actually exhibited lower demand for credit after the business training. This is attributed to increased awareness of the actual risk associated with taking out credit. The findings of this research reinforce national strategies to promote soft skills for business entrepreneurship, extending beyond the standard business training.
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Juliet Nassozi Ssekandi