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‘Bang for buck’ in microfinance: Wellbeing mentorship or business education?

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  • Gamble, Edward N.

Abstract

Within the microfinance literature, there is a growing interest in institutional logics. This paper explores ways that microfinance institutions can overcome the logic-tension of offering developmental programs and maintaining financial stability. First, I conduct a randomized control trial in Uganda to examine the financial and non-financial outcomes of loan recipients. Second, I use results from the field experiment, in a resource allocation model, to optimize the goals of a lending institution. I find that wellbeing mentorship, rather than business training, is the best ‘bang for buck’ when considering the interests of both the women entrepreneurs and the microfinance lending institution.

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  • Gamble, Edward N., 2018. "‘Bang for buck’ in microfinance: Wellbeing mentorship or business education?," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 137-144.
    • Handle: RePEc:eee:jobuve:v:9:y:2018:i:c:p:137-144
    DOI: 10.1016/j.jbvi.2018.04.003
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    1. Branzei, Oana & Parker, Simon C. & Moroz, Peter W. & Gamble, Edward, 2018. "Going pro-social: Extending the individual-venture nexus to the collective level," Journal of Business Venturing, Elsevier, vol. 33(5), pages 551-565.

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