Microcredit Impact on Business Performance: A Minor Field Study in El Salvador
Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Microcredits have become a popular way to include poor people in the financial market. Former research on the impact on business performance has provided divergent findings and its impact on the Salvadoran market is not yet investigated. This thesis takes on this problem by analysing and evaluating how the microenterprises in Usulután, El Salvador are affected by the participation in a microcredit program. By using a quantitative method the business performance of a treatment group is compared to that of a control group. The results show that participation in a microcredit program enlarged the enterprise size in terms of sales, total assets and equity, but did not have any significant impact on business profit, marginal return to capital or fixed asset. Regressions are conducted to describe what individual characteristics of the clients are the most important for the business performance. Clients with higher education and male clients over performed other clients.
Place, publisher, year, edition, pages
2014. , 71 p.
Microcredit Impact; Business Performance; Microenterprise; Usulután; El Salvador.
IdentifiersURN: urn:nbn:se:liu:diva-117894ISRN: LIU-IEI-FIL-A--14/01825--SEOAI: oai:DiVA.org:liu-117894DiVA: diva2:811765
Subject / course
Master Thesis in Economics
Boschini, Anne, Universitetslektor
Hägg, Göran, Universitetslektor