Working Paper: NBER ID: w26661
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: Microentrepreneurship; Developing Countries; Gender; Formalization; Access to Credit
JEL Codes: M13; O10; O17
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Female microentrepreneurs (O12) | Returns to capital (F21) |
| Access to business training (M53) | Likelihood of survival (C41) |
| Access to business training (M53) | Profitability (L21) |
| Formalization (L23) | Sales (L81) |
| Formalization (L23) | Profits (D33) |
| Cash grants (H81) | Profits (D33) |
| Cash grants (H81) | Returns to capital (F21) |