Do Credit Constraints Limit Entrepreneurship ? Heterogeneity in the Returns to Microfinance

  title={Do Credit Constraints Limit Entrepreneurship ? Heterogeneity in the Returns to Microfinance},
  author={Abhijit Banerjee and EMILY BREZA and Esther Duflo and Cynthia Georgia Kinnan},
Can improved access to credit jump-start microenterprise growth? We examine subjects in urban Hyderabad, India, six years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation–was randomly introduced to a subset of neighborhoods. We find large benefits both in business scale and performance from giving “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably, these effects… CONTINUE READING
7 Citations
25 References
Similar Papers


Publications referenced by this paper.
Showing 1-10 of 25 references

Microfinance as commitment savings: Evidence from the AP crisis aftermath,

  • A. Banerjee, E. Breza, E. Duflo, C. Kinnan, K. Prathap
  • 2014
Highly Influential
11 Excerpts

Training, wages, and sample selection: Estimating sharp bounds on treatment effects,

  • D. S. Lee
  • The Review of Economic Studies,
  • 2009
Highly Influential
8 Excerpts

The Impacts of Microcredit: Evidence from Bosnia and Herzegovina,

  • B. Augsburg, R. De Haas, H. Harmgart
  • Meghir
  • 2015
1 Excerpt

Similar Papers

Loading similar papers…