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Money Management and Entrepreneurial Training in Microfinance: Impact on Beneficiaries and Institutions


  • Emanuele Rusinà
  • Lucia dalla Pellegrina
  • Giorgio di Maio
  • Paolo Landoni


Most Microfinance institutions (MFIs) worldwide focus their efforts in relieving the poor from financial constraints through micro-loans. This research focuses on integrating a money management and entrepreneurial training plan to a lending program in a non-profit MFI in Kolkata, India. The paper’s main purpose is to measure the marginal impact of training on the beneficiaries through a randomized control trial. Positive and significant effects are found on both institutional outcomes (number of missing or delayed repayments, average weekly savings) and financial management skills of the clients (ability to separate personal and business money, to track revenues and expenses, to calculate profits). Initiative and self-confidence measures also increase, while business outcomes and entrepreneurial skills of the participants exhibit no significant changes. The effects appear stronger on those for whom the training was compulsory, and for those who expressed more interest in the course before the beginning of the program. A formal set-up and incentives linked with the completion of the training are therefore advised when considering similar interventions.

Suggested Citation

  • Emanuele Rusinà & Lucia dalla Pellegrina & Giorgio di Maio & Paolo Landoni, 2015. "Money Management and Entrepreneurial Training in Microfinance: Impact on Beneficiaries and Institutions," Working Papers 296, University of Milano-Bicocca, Department of Economics, revised Mar 2015.
  • Handle: RePEc:mib:wpaper:296

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    More about this item


    Microfinance; training programs; money management; entrepreneurship; difference-in-differences;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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