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Can Basic Entrepreneurship Transform the Economic Lives of the Poor?

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Author Info

  • Bandiera, Oriana

    ()
    (London School of Economics)

  • Burgess, Robin

    ()
    (London School of Economics)

  • Das, Narayan

    ()
    (Bangladesh Rural Advancement Committee (BRAC))

  • Gulesci, Selim

    ()
    (Bocconi University)

  • Rasul, Imran

    ()
    (University College London)

  • Sulaiman, Munshi

    ()
    (Bangladesh Rural Advancement Committee (BRAC))

Abstract

The world's poorest people lack capital and skills and toil for others in occupations that others shun. Using a large-scale and long-term randomized control trial in Bangladesh this paper demonstrates that sizable transfers of assets and skills enable the poorest women to shift out of agricultural labor and into running small businesses. This shift, which persists and strengthens after assistance is withdrawn, leads to a 38% increase in earnings. Inculcating basic entrepreneurship, where severely disadvantaged women take on occupations which were the preserve of non-poor women, is shown to be a powerful means of transforming the economic lives of the poor.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7386.

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Length: 55 pages
Date of creation: May 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7386

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Related research

Keywords: asset transfers; capital constraints; vocational training; occupational choice; structural change; poverty;

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References

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  1. Fafchamps, Marcel; McKenzie; Quinn, Simon; Woodruff, Christopher, 2011. "When is capital enough to get female microenterprises growing? Evidence from a randomized experiment in Ghana," CAGE Online Working Paper Series 50, Competitive Advantage in the Global Economy (CAGE).
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Citations

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Cited by:
  1. Morduch, Jonathan & Ravi, Shamika & Bauchet, Jonathan, 2012. "Failure vs. Displacement: Why an Innovative Anti-Poverty Program Showed No Net Impact," CEI Working Paper Series 2012-05, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  2. Cho, Yoonyoung & Honorati, Maddalena, 2013. "Entrepreneurship programs in developing countries : a meta regression analysis," Social Protection Discussion Papers 77168, The World Bank.
  3. Das, Narayan & Yasmin, Rabeya & Ara, Jinnat & Kamruzzaman, Md. & Davis, Peter & Behrman, Julia A. & Roy, Shalini & Quisumbing, Agnes R., 2013. "How do intrahousehold dynamics change when assets are transferred to women? Evidence from BRAC’s Challenging the Frontiers of Poverty Reduction—Targeting the Ultra Poor program in Bangla," IFPRI discussion papers 1317, International Food Policy Research Institute (IFPRI).
  4. Mobarak, Ahmed Mushfiq & Rosenzweig, Mark, 2014. "Risk, Insurance and Wages in General Equilibrium," CEPR Discussion Papers 9797, C.E.P.R. Discussion Papers.
  5. Jonathan Argent & Britta Augsburg & Imran Rasul, 2013. "Livestock asset transfers with and without training: evidence from Rwanda," IFS Working Papers W13/23, Institute for Fiscal Studies.

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