The Returns to Microenterprise Support Among the Ultra-Poor: A Field Experiment in Post-War Uganda

81 Pages Posted: 23 May 2014 Last revised: 18 Jun 2015

See all articles by Christopher Blattman

Christopher Blattman

University of Chicago, Harris School of Public Policy; National Bureau of Economic Research (NBER)

Eric Green

Duke Global Health Institute

Julian C. Jamison

University of Exeter Business School - Department of Economics; World Bank eMBeD (Mind, Behavior, and Development); Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL); Innovations for Poverty Action

M. Christian Lehmann

University of Brasília

Jeannie Annan

International Rescue Committee

Multiple version iconThere are 2 versions of this paper

Date Written: June 17, 2015

Abstract

We show that extremely poor, war-affected women in northern Uganda have high returns to a package of $150 cash, five days of business skills training, and ongoing supervision. 16 months after grants, participants doubled their microenterprise ownership and incomes, mainly from petty trading. We also show these ultrapoor have too little social capital, but that group bonds, informal insurance, and cooperative activities could be induced and had positive returns. When the control group received cash and training 20 months later, we varied supervision, which represented half of the program costs. A year later, supervision increased business survival but not consumption.

Keywords: Poverty, cash transfers, credit constraints, microenterprises, employment, Africa, active labor market intervention, field experiment

JEL Classification: J24, O12, D13, C93

Suggested Citation

Blattman, Christopher and Green, Eric and Jamison, Julian C. and Lehmann, M. Christian and Annan, Jeannie, The Returns to Microenterprise Support Among the Ultra-Poor: A Field Experiment in Post-War Uganda (June 17, 2015). Available at SSRN: https://ssrn.com/abstract=2439488 or http://dx.doi.org/10.2139/ssrn.2439488

Christopher Blattman (Contact Author)

University of Chicago, Harris School of Public Policy ( email )

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National Bureau of Economic Research (NBER) ( email )

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Eric Green

Duke Global Health Institute ( email )

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Julian C. Jamison

University of Exeter Business School - Department of Economics ( email )

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Exeter, EX4 4RJ
United Kingdom

World Bank eMBeD (Mind, Behavior, and Development) ( email )

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Washington, DC 20433
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Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL) ( email )

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Cambridge, MA 02142
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Innovations for Poverty Action ( email )

1731 Connecticut Ave, 4th floor
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M. Christian Lehmann

University of Brasília ( email )

Campus Universitário Darcy Ribeiro
Asa Norte
Brasília, Distrito Federal 70910-900
Brazil

HOME PAGE: http://www.christian-lehmann.net/

Jeannie Annan

International Rescue Committee ( email )

New York, NY
United States

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