Tag
capital_constraints
3 findings
DevelopmentBundled Credit and Business TrainingBundled programs increased short-run profits, but gains were frequently driven entirely by the financial assistance component rather than training additionality; in Uganda, male entrepreneurs receiving loans and training gained 54% higher profits, whereas female profits remained completely unchanged.RCTFinance & microfinanceTangible Capital Surplus versus Intangible Asset Financing FrictionsProject firms made average tangible capital investments of $880,000 (median $140,000) over two years, showing that direct execution costs of management practices ($3,000) were unconstrained, whereas market-rate external consulting ($250,000) faced severe intangible asset collateralization barriers in credit markets.RCTFinance & microfinanceTraining-Induced Credit Demand ActivationBusiness training doubled borrowing among upper-caste Hindu women, increasing loan take-up by 13 percentage points (p < 0.05) from a control mean of 17%, while causing a statistically insignificant reduction in savings (-315.32 rupees), confirming that training activates credit demand rather than merely increasing capital supply.RCT