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Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya
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Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya
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Journal Article
Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya
2013
Overview
Does limited access to formal savings services impede business growth in poor countries? To shed light on this question, we randomized access to noninterest-bearing bank accounts among two types of self-employed individuals in rural Kenya: market vendors (who are mostly women) and men working as bicycle taxi drivers. Despite large withdrawal fees, a substantial share of market women used the accounts, were able to save more, and increased their productive investment and private expenditures. We see no impact for bicycletaxi drivers. These results imply significant barriers to savings and investment for market women in our study context.
