Export Market Access
Traditional micro-enterprise assistance programs, such as credit access initiatives and basic business training, frequently deliver minimal long-term impact on firm profitability.
Picture this
Connecting small artisanal producers directly to wealthy foreign markets is like giving a local village baker a booth at a high-end gourmet market, allowing them to sell crafted items for much higher prices that more than cover the extra time and care required.
What the evidence says
Exporting firms achieved a 26 percent increase in monthly profits and a 43 percent increase in unit prices relative to comparison firms, despite a 5 percent increase in hours worked.
- Who
- N = 219 small rug-producing firms (74 treatment, 145 comparison) with fewer than 5 employees in Fowa, Egypt [5].
- How
- Randomized Controlled Trial measuring monthly profits, working hours, and unit prices over a three-year panel dataset from 2011 to 2014 [5, 7, 13].
What to do
Partner micro-enterprises with local trade intermediaries capable of securing sustained foreign purchase orders and managing international logistics.
From the source
"Offering small firms the opportunity to export rugs increased profits. Exporting firms' monthly profits increased by 26 percent relative to the comparison group."
egyptian-rug-firms-weave-their-way-into-foreign-markets.pdf