Evidence in Labor Market Policies and Implications for Brazil: Microcredit

The lack of access to financing is one of the many barriers that small and medium-sized enterprises face in their development. In this context, microcredit programs can be a tool to help entrepreneurs overcome financial constraints by providing access to low-value financing aimed at fostering growth and alleviating poverty through increased income-generating opportunities. However, despite the popularity of these programs worldwide, evaluations in middle- and low-income countries indicate that the provision of microcredit has not always led to significant impacts on income and consumption, nor has it consistently promoted high-return investments. Therefore, it is important to identify the most relevant characteristics of successful programs. This publication—co-authored by JOI Brasil, a J-PAL LAC initiative, and the Inter-American Development Bank—analyzes the available evidence on microcredit programs and discusses their implications for public policy formulation in Brazil.

Evidence in Labor Market Policies and Implications for Brazil series