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The Impact of Microfinance Loans on the Clients' Enterprises: Caja Los Andes, Bolivia

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Abstract

This paper analyzes the impact of microfinance loans on productivity and growth of micro-enterprises using a unique client database from Caja Los Andes, one of the leading microfinance providers in Bolivia. Our results show that the clients put the additional funds to good use: Clients with a higher number and a higher average size of prior loans are found to have higher growth rates than other clients. The effects on productivity depend on the size of the business. Surprisingly, clients with larger businesses benefit more from prior loans than others.

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  • Ulrike Vogelgesang, 2001. "The Impact of Microfinance Loans on the Clients' Enterprises: Caja Los Andes, Bolivia," GK working paper series 2001-03, Post Graduate Programme "Allocation on Financial Markets", University of Mannheim, revised Nov 2001.
    • Handle: RePEc:xrs:gkwopa:2001-03
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    Cited by:

    1. Winkler, Adalbert & Wagner, Charlotte, 2013. "Growth patterns of microfinance clients - Evidence from Sub-Saharan Africa," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79945, Verein für Socialpolitik / German Economic Association.
    2. Habibu Sani & Shazida Jan Mohd-Khan & Mohd Saifoul Zamzuri Noor, 2018. "Microfinance training and the number of loans received by SMEs. An empirical evidence from emerging economy," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 326-341, April.

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    More about this item

    Keywords

    Microfinance; Microenterprise development; micro-enterprise growth; Impact analysis;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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