PMMA-19978 Financial Inclusion and Gender Disparity in Risk Appetite for Micro, Small and Medium Enterprises Performance: Evidence from Ethiopia

Abstract

The proposed study will undertake a non-experimental impact evaluation of finance and training on MSEs performance and examines entrepreneurial risk appetite of male and female entrepreneurs and its implications on MSEs performance. First, we address the nature of risk preference of entrepreneurs and answer: Do women entrepreneurs are more risk averse than men entrepreneurs? What factors influence risk attitude of entrepreneurs? Second, we evaluate whether access to credit alone, training alone or their combination improve the performance of entrepreneurs in MSEs and assess if women entrepreneurs have a higher return on capital than their men counter parts. Our study has two novel contributions. We contribute to the on-going debate whether woman entrepreneurs are more risk averse than men by providing evidence in urban setting of least developed country. Besides, we provide credible impact estimations through evaluating the impact of capital-cum-training on MSEs performance. We use propensity scores matching approach for multiple treatments due to (Imbens, 1999 and Lechner, 2001). Understanding the risk attitude of entrepreneurs will help to mold economic policies that target at the entrepreneurial population to enhance performance. The credible impact estimations will also signal which intervention is more effective and for whom to foster growth in the MSEs. We purposely select Urban Ethiopia given the size of the country, the recent rise of unemployment and large MSE sector. We use recent survey data of 1445 male and female entrepreneurs in MSE sector in urban Ethiopia. Also, we adapt econometric approach to estimate risk preference due to Antle (1987) based on survey data of MSEs.


Members

Project leader: Yesuf Mohammednur Awel

Project researchers: Eleni Yitbarek | Mulatu Zerihun | Jonse Bane Boka | Ajebush Shafi | Hiywot Menker

Scientific mentors: Abdelkrim Araar


Working Papers

Title Modified Size Comments Recommendations
Entrepreneurs’ Attitudes Toward Risk in Micro and Small Enterprises: Evidence from Urban Ethiopia 2019-02-27 774.91kB 0 0
Impact of Credit and Training on Enterprise Performance: Evidence from Urban Ethiopia 2019-06-14 1.28MB 0 0

Policy Briefs

Title Modified Size Comments Recommendations
Combining credit and training to support micro and small enterprises in Ethiopia 2019-03-25 509.84kB 0 0

Proposal

Title Modified Size Comments Recommendations
2017-09-21 525.91kB 0 0

Final report

Title Modified Size Comments Recommendations
Financial Inclusion and Gender Disparity in Risk Appetite for Micro, Small and Medium Enterprises Performance: Evidence from Ethiopia 2018-09-18 334.89kB 0 0

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