Working Paper: CEPR ID: DP14368
Authors: Seema Jayachandran
Abstract: This article reviews the recent literature in economics on small-scale entrepreneurship ("microentrepreneurship") in low-income countries. Major themes in the literature include the determinants and consequences of joining the formal sector; the impacts of access to credit and other financial services; the impacts of business training; barriers to hiring; and the distinction between self-employment by necessity and self-employment as a calling. The article devotes special attention to unique issues that arise with female entrepreneurship.
Keywords: small businesses; female entrepreneurship; self-employment; informal sector
JEL Codes: L26; J16; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| modest increase in formalization rates (O17) | improvement in sales or profits (L25) |
| providing information and covering registration fees for microenterprises in Brazil (N86) | modest increase in formalization rates (O17) |
| cash grants of $100 (H53) | raised profits by $5 per month (D33) |
| cash grants of $100 (H53) | return of 60% per year (G12) |
| cash grants of $100 (H53) | return to capital for female microentrepreneurs (D29) |
| business training (M20) | significant increases in profits and survival rates (L21) |
| business training (M20) | no positive effects (D62) |
| access to credit and business training (M13) | improve outcomes for microentrepreneurs (O12) |