PIERI-12451 Beyond Technical Skills Training: The impact of Credit Counselling on Entrepreneurial Behavior of Ugandan Youth

Abstract

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 intervention consists of credit-counselling and sector-specific business training for young men and women aged 18-35 years who own a business to inform them about the obligations and commitments associated with financial credit. The intervention has a significant impact on the demand for credit and related intermediate outcomes such as the ownership of a bank account and the investment in assets. The study finds that the youth actually exhibit lower demand for credit after the business training. This is attributed to an 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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Members

Project leader: Juliet Nassozi Ssekandi

Project researchers: Zeridah Zigiti | Benjamin Kachero | Galiwango Samuel | DANIEL JOLOBA

Scientific mentors: Maria Laura Alzua | Maria Adelaida Lopera Baena

Journal publication

Authors	Co-Authors	Title of paper	Title of Economic Review	Bibliographic references
Maria Laura Alzua	Maria Josefina Baez, Samuel Galiwango, Daniel Joloba, Benjamin Kachero, Maria Adelaida Lopera, Juliet Ssekandi, Zeridah Zigiti	Beyond technical skills training: The impact of credit counseling on the entrepreneurial behavior of Ugandan youth	Review of Development Economics	Special issue (PEP) Volume 24, Issue 3 August 2020 pp. 750-765

Working Papers

	Title	Modified	Size	Comments	Recommendations
	Beyond Technical Skills Training: The Impact of Credit Counselling on Entrepreneurial Behavior of Ugandan Youth	2017-05-17	963.48KB	0	0

Policy Briefs

	Title	Modified	Size	Comments	Recommendations
	Impact of credit counseling on the entrepreneurial behavior of Ugandan youth	2016-12-14	431.13KB	0	0

Final report

	Title	Modified	Size	Comments	Recommendations
		2015-08-25	1189.64KB	0	0

Proposal

	Title	Modified	Size	Comments	Recommendations
		2013-08-07	676.67KB	1	1