The Impacts of Microfranchising on Young Women in Nairobi

Research Note
Published on 10 May 2017

Abstract

Brudevold-Newman, Honorati, Jakiela and Ozier (2017) evaluated two interventions that eased credit constraints in slightly different ways: a multifaceted ‘microfranchising’ programme eased both financial and human capital constraints by providing training and physical capital to recipients, while an unrestricted cash grant of comparable value more directly eased credit constraints. Both interventions led to persistent increases in self-employment and had economically large and statistically significant impacts on income over the medium-term (7 to 10 months after intervention). However, the impacts on income diminished over time.

Authors

Maddalena Honorati

World Bank

Pamela Jakiela

Center for Global Development

Owen Ozier

World Bank Group