"Bang for buck" in microfinance: Wellbeing mentorship or business education?
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.
Gamble, Edward N. . "Bang for buck" in microfinance: Wellbeing mentorship or business education?." Journal of Business Venturing Insights 9 (June 2018): 137-144. DOI:10.1016/j.jbvi.2018.04.003.