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Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions

Author

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  • Lucia Dalla Pellegrina

    (Università degli Studi di Milano-Bicocca)

  • Giorgio Di Maio

    (Università degli Studi dell’Insubria)

  • Paolo Landoni

    (Politecnico di Torino)

  • Emanuele Rusinà

    (University of California at Berkeley, Haas School of Business)

Abstract

This study uses a randomized control trial to evaluate the outcome of integrating money management and entrepreneurial training into a microcredit program in India. We find positive and significant effects on clients’ financial management skills and entrepreneurship abilities, particularly for clients with higher human capital, or more diligent, or having an entrepreneurial idea, and an increase in initiative and self-confidence. Effects appear stronger for clients obliged to attend the training course or more interested in attending it. By considering missed or delayed repayments reduction we assess the benefits of the training provided and of extending it for the institution.

Suggested Citation

  • Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    • Handle: RePEc:spr:epolit:v:38:y:2021:i:3:d:10.1007_s40888-021-00217-9
    DOI: 10.1007/s40888-021-00217-9
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    Cited by:

    1. Nicola Banks & Dan Brockington & David Hulme & Mathilde Maitrot, 2019. "Interrogating Microfinance Performance Beyond Products, Clients and the Environment: Insights From the Work of BRAC in Tanzania," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 339-363, July.
    2. Suchi Kapoor Malhotra & Swati Mantri & Neha Gupta & Ratika Bhandari & Ralph Nii Armah & Hamdiyah Alhassan & Sarah Young & Howard White & Ranjitha Puskur & Hugh Sharma Waddington & Edoardo Masset, 2024. "Value chain interventions for improving women's economic empowerment: A mixed‐methods systematic review and meta‐analysis," Campbell Systematic Reviews, John Wiley & Sons, vol. 20(3), September.

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    More about this item

    Keywords

    Microfinance; Training program; Money management; Entrepreneurship;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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