What Generates Growth in Microenterprises ? Experimental Evidence on Capital , Labor and Training

@inproceedings{Mel2014WhatGG,
  title={What Generates Growth in Microenterprises ? Experimental Evidence on Capital , Labor and Training},
  author={Suresh de Mel and David McKenzie and Christopher Woodruff},
  year={2014}
}
Previous research shows that capital injections lead to higher profits in microenterprises, but to little sustained growth. We conduct an experiment which provides overlapping treatments designed to provide capital, incentives to hire new employees and management training. Working with a sample of 1,525 Sri Lankan enterprises with two or fewer paid employees at baseline, we find that the treatments have largely temporary effects, suggesting that while they may speed convergence to a steady… CONTINUE READING