Evaluation
In partnership with three microfinance institutions (MFIs), researchers conducted a randomized evaluation to measure the impact of providing loans, cash grants, or in-kind grants on microentrepreneurs’ business decisions, outcomes, and overall welfare. All three types of capital assistance led to increases in business and economic outcomes, especially for women. Impacts were concentrated among the best-performing recipients of each type of assistance, and researchers found that observable characteristics were the same among those top-performers across all three groups. This suggests that personal characteristics are more important than the type of assistance in predicting the effectiveness of capital assistance.