The Impact of Microfinance Loans on Small Informal Enterprises in Madagascar

Gubert, Flore; Roubaud, Francois

The Impact of Microfinance Loans on Small Informal Enterprises in Madagascar

Autores

Gubert, Flore

Roubaud, Francois

Editor

World Bank, Washington, DC

Descripción

This paper analyses the impact of a microfinance institution (MFI) serving small informal enterprises in Antananarivo (Madagascar). The methodology consists of comparing over time the situation of a representative sample of clients' enterprises with a control group, constructed in an almost experimental way through a standard propensity-score matching technique. Overall, the results indicate a positive impact of the project. Taken as a snapshot, the evaluations successively conducted in 2001 and 2004 indicate that the clients' enterprises recorded better average performance than enterprises without funding. With a dynamic perspective however, the results are more nuanced. If the positive effect of the project is clear during growth phases, its effect during economic recessions appears less certain.

Palabras clave

ACCESS TO CAPITAL, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FORMAL CREDIT, ACCOUNTS, ACCUMULATION RATE, ADVANCED ECONOMY, AGRICULTURAL ECONOMICS, BANK CREDIT, BANK POLICY, BARRIERS TO ENTRY, BIASES, BORROWING, BUSINESS ACTIVITY, BUSINESS ASSOCIATIONS, BUSINESS ECONOMICS, BUSINESS OWNERS, BUSINESS RISK, CAPACITY BUILDING, CAPITAL ACCUMULATION, CAPITAL CONSTRAINT, CAPITAL COST, CAPITAL INJECTION, CAPITAL MARKET, CAPITAL REQUIREMENTS, CAPITAL RETURNS, CAPITAL SHORTAGES, CAPITAL STOCK, CHECKS, COLLATERAL, CONTRACTUAL OBLIGATIONS, COST OF CAPITAL, CREDIT CONSTRAINED FIRMS, CREDIT CONSTRAINT, CREDIT HISTORY, CREDIT INSTITUTIONS, CREDIT MARKET, CREDIT RATIONING, DEGREES OF RISK, DEMOGRAPHIC CHARACTERISTICS, DEVELOPING COUNTRY, DEVELOPMENT ECONOMICS, DIVERSIFICATION, DUMMY VARIABLE, DURABLE, DURABLE GOODS, EARNINGS, ECONOMETRIC MODELS, ECONOMIC CONSTRAINTS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC POLICIES, ECONOMIC STATISTICS, ENDOWMENTS, ENTERPRISE PERFORMANCE, ENTREPRENEUR, ENTREPRENEURIAL ACTIVITY, ENTRY BARRIERS, EQUIPMENT, EXCESSIVE RISK, EXPECTED UTILITY, EXPECTED VALUE, EXPENDITURE, EXTERNAL FINANCE, FAMILY FINANCE, FAMILY LOANS, FARMERS, FEMALE ENTREPRENEURS, FINANCIAL MEANS, FINANCIAL RESOURCES, FINANCIAL SUPPORT, FIXED COSTS, FORMAL BANKS, GDP, GROUP OF FIRMS, GROWTH THEORY, HIGH INTEREST RATES, HOLDING, HOUSEHOLD WEALTH, HOUSEHOLDS, HUMAN CAPITAL, INCOME GROWTH, INFORMATION ASYMMETRIES, INFORMATION ON ENTREPRENEURS, INFORMATION ON INVESTMENT, INSTRUMENT, INSURANCE, INSURANCE MARKET, INSURANCE PRODUCTS, INTEREST RATE, INTERNAL FINANCE, INTERNAL FUNDS, INVENTORY, INVESTING, INVESTMENT BEHAVIOR, JOB CREATION, LABOR FORCE SURVEY, LABOR MARKET, LACK OF ACCESS, LEVEL OF RISK, LIQUID WEALTH, LIQUIDITY, LIQUIDITY CONSTRAINT, LIQUIDITY PREMIUM, LIQUIDITY PROBLEMS, LOAN, LOTTERY, MARGINAL COST, MARGINAL PRODUCT, MARGINAL UTILITY, MARGINAL UTILITY OF CONSUMPTION, MARKET CONSTRAINTS, MARKET ECONOMY, MARKET FAILURE, MARKET INTEREST RATE, MICRO DATA, MICRO ENTERPRISES, MICRO-CREDIT, MICRO-ENTERPRISE, MICRO-FINANCE, MICRO-FINANCE INSTITUTIONS, MICROCREDIT, MICROENTERPRISES, MIDDLE INCOME COUNTRIES, MONEYLENDERS, MORAL HAZARD, OPPORTUNITY COST, PHYSICAL CAPITAL, POLITICAL ECONOMY, PORTFOLIO, PRICE RISK, PRICE UNCERTAINTY, PRODUCTION FUNCTION, PRODUCTIVE INVESTMENT, PROFITABILITY, PURCHASING POWER, PURCHASING POWER PARITY, RATE OF RETURN, RECEIPTS, REINVESTMENT, RETAINED EARNINGS, RISK AVERSION, RISK PERCEPTIONS, RISK PREMIUM, RISK-AVERSE INDIVIDUALS, SAFE ASSET, SAVINGS, SELF-EMPLOYMENT, SMALL BUSINESS, SMALL ENTERPRISES, SMALL-SCALE ENTREPRENEURS, SOURCE OF CREDIT, SOURCES OF FINANCE, START-UP, TAX, TAXIS, TRADE SECTOR, TRADING, TRANSITION COUNTRY, TRANSITION ECONOMY, TRUST FUND, UNION, VALUE ADDED, WEALTH