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Understanding the microenterprise sector to design a tailor-made microfinance policy for Cape Verde

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  • José Baptista

    ()

  • Joaquim Ramalho

    ()

  • J. Vidigal da Silva

    ()

Abstract

Two of the central challenges faced by Cape Verde at the present are the high level of unemployment and the increasing proportion of the population that lives below the poverty line. Microenterprise development can be an effective means of addressing both problems in a developing country like Cape Verde, where microenterprises account for about 50% of employment. In this paper we provide a detailed profile of micro firms? owners and investigate the relationship between their characteristics and the resort to outside seed capital. We find a cluster of factors - the microentrepreneur?s age, gender, level of education and reason for being self-employed - which influence significantly the probability of being in need for external startup capital. The policy implications of these findings for the design of a specific microfinance program for Cape Verde are discussed.

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File URL: http://hdl.handle.net/10.1007/s10258-006-0004-7
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Bibliographic Info

Article provided by Springer in its journal Portuguese Economic Journal.

Volume (Year): 5 (2006)
Issue (Month): 3 (December)
Pages: 225-241

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Handle: RePEc:spr:portec:v:5:y:2006:i:3:p:225-241

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Related research

Keywords: Cape Verde; Microfinance; Microenterprise; Microcredit; Poverty; O18; G32;

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  1. Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  2. Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-92, July.
  3. Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
  4. Pagan, Adrian & Vella, Frank, 1989. "Diagnostic Tests for Models Based on Individual Data: A Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages S29-59, Supplemen.
  5. Russell Davidson & James G. MacKinnon, 1982. "Convenient Specification Tests for Logit and Probit Models," Working Papers 514, Queen's University, Department of Economics.
  6. Evans, Timothy G. & Adams, Alayne M. & Mohammed, Rafi & Norris, Alison H., 1999. "Demystifying Nonparticipation in Microcredit: A Population-Based Analysis," World Development, Elsevier, vol. 27(2), pages 419-430, February.
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Cited by:
  1. Boza Chirino, José & Maroto Santana, Octavio & Cáceres Apolinario, Rosa Mª., 2010. "Los Microcréditos como medio de Financiación Alternativa. Estudio aplicado a Cabo Verde/The Microcredits Like Way of Alternative Funding. Study Applied to Cape Verde," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 28, pages 199 (20 pá, Abril.

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