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Beyond technical skills training: the impact of credit counselling on entrepreneurial behavior of ugandan youth

Author

Listed:
  • Juliet Ssekandi
  • Zeridah Zigiti
  • Daniel Joloba
  • Benjamin Kachero
  • Samuel Galiwango

Abstract

There is a low financial credit take among youth in Uganda because potential beneficiaries perceive the associated risk as high. This study assesses the determinants of entrepreneurial risk tolerance among Ugandan youth using experimental data from a randomised control trial and a real-life investment risk experiment. The intervention consists of credit-counselling and sector-specific business training for young men and women aged 18-35 years who own a business to inform them about the obligations and commitments associated with financial credit. The intervention has a significant impact on the demand for credit and related intermediate outcomes such as the ownership of a bank account and the investment in assets. The study finds that the youth actually exhibit lower demand for credit after the business training. This is attributed to an increased awareness of the actual risk associated with taking out credit. The findings of this research reinforce national strategies to promote soft skills for business entrepreneurship, extending beyond the standard business training.

Suggested Citation

  • Juliet Ssekandi & Zeridah Zigiti & Daniel Joloba & Benjamin Kachero & Samuel Galiwango, 2016. "Beyond technical skills training: the impact of credit counselling on entrepreneurial behavior of ugandan youth," Working Papers PIERI 2016-22, PEP-PIERI.
    • Handle: RePEc:lvl:piercr:2016-22
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    References listed on IDEAS

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    More about this item

    Keywords

    Credit counseling; Youth Venture Capital Fund; Risk Experiment; Uganda; Youth Employment; Randomised experiment; Risk Tolerance;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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