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Cash and Small Business Groups for Ugandans and Refugees

Author

Listed:
  • Travis Baseler

    (University of Rochester)

  • Thomas Ginn

    (Center for Global Development)

  • Ibrahim Kasirye

    (Economic Policy Research Centre)

  • Belinda Muya

    (International Rescue Committee)

  • Andrew Zeitlin

    (Georgetown University)

Abstract

Constraints that inhibit small business growth are potentially amplified for groups with limited access to existing business networks like refugees and women. Programs that facilitate intergroup contact, in addition to capital, could potentially raise welfare, especially if incentives are aligned for participants to share information and invest effort in each other's outcomes. In a randomized trial with microentrepreneurs, we vary business grants, inclusion in a mentorship group, the gender and nationality composition of groups, and a "shared fate" component that compensates group members for the success of other members’ businesses. We find that grants substantially improve business outcomes for men, women, refugees, and hosts. Combining mentorship with cash has an additional positive effect for refugee men, but a negative effect relative to cash alone for women who run higher-profit firms. Mentors with higher baseline profits significantly improve mentees' business outcomes, while differences across group gender and nationality compositions are small. The shared fate addition worsens early outcomes in aligned groups but does not affect mixed groups.

Suggested Citation

  • Travis Baseler & Thomas Ginn & Ibrahim Kasirye & Belinda Muya & Andrew Zeitlin, 2025. "Cash and Small Business Groups for Ugandans and Refugees," Working Papers 716, Center for Global Development.
  • Handle: RePEc:cgd:wpaper:716
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    More about this item

    Keywords

    Microentrepreneurship; Networks; Mentorship; Refugees;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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