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Impact of Credit and Training on Enterprise Performance: Evidence from Urban Ethiopia

Author

Listed:
  • Abdelkrim Araar
  • Yesuf Mohammednur Awel
  • Jonse Bane Boka
  • Hiywot Menker
  • Ajebush Shafi
  • Eleni Yitbarek
  • Mulatu Zerihun

Abstract

This study evaluates the impact of business-development-support programs (credit, training, and a combination of both) on the performance of micro- and small enterprises (MSEs) in Ethiopia. Using 2015 Ethiopian urban survey data and employing endogenous-switching regressions for multiple treatments, we document a positive and significant effect of credit, training, and a combination of training and credit on MSEs. Our results highlight the heterogeneity in treatment effects between women- and men-owned MSEs: women-owned businesses do not benefit from access to treatments. Our results suggest that improving the performance of MSEs requires fine-tuned interventions that meet the specific needs of men and women who own small businesses rather than one-size-fits-all programs.

Suggested Citation

  • Abdelkrim Araar & Yesuf Mohammednur Awel & Jonse Bane Boka & Hiywot Menker & Ajebush Shafi & Eleni Yitbarek & Mulatu Zerihun, 2019. "Impact of Credit and Training on Enterprise Performance: Evidence from Urban Ethiopia," Working Papers PMMA 2019-13, PEP-PMMA.
    • Handle: RePEc:lvl:pmmacr:2019-13
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    2. Eleni Yitbarek & Wondimagegn Tesfaye, 2022. "Climate-Smart Agriculture, Non-Farm Employment and Welfare: Exploring Impacts and Options for Scaling Up," Sustainability, MDPI, vol. 14(23), pages 1-22, November.

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    More about this item

    Keywords

    Treatment effects; MSEs; Ethiopia;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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