Working Paper: CEPR ID: DP15916
Authors: Sandra Sequeira; Pedro C. Vicente; Catia Batista
Abstract: We examine the complementarity between access to mobile savings accounts and improved financial management skills on the performance of female-led micro-enterprises in Mozambique. This combined support is associated with a large increase in both short and long-term firm profits and in financial security, when compared to the independent effect of each of these interventions. This support allowed female-headed micro-enterprises to close the gender gap in performance and financial literacy relative to their male counterparts. The main drivers of improved business performance are increased financial management practices (bookkeeping), an increase in accessible savings and reduced transfers to friends and relatives.
Keywords: microenterprise; development; management; gender; mobile money; financial literacy; economic development
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| combined treatment (C32) | profits for female microentrepreneurs (O12) |
| combined treatment (C32) | household financial security (D14) |
| financial management training (M53) | bookkeeping practices (M41) |
| financial management training (M53) | reduction in remittances to relatives (F24) |
| combined treatment (C32) | increased savings (D14) |