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  • 1
    Language: English
    Pages: 1 Online-Ressource (25 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Alibhai, Salman Crossovers: Female Entrepreneurs Who Enter Male Sectors: Evidence from Ethiopia
    Abstract: Occupational sector selection is an important determinant of returns for female entrepreneurs. If sectors that are traditionally male owned could provide an opportunity to earn higher returns, then what factors could encourage women to cross over into these sectors or prevent them from doing so? To examine this question, this paper uses data from Ethiopia to compare the firm performance and characteristics of women in male-dominated sectors (crossovers) with women who are in female-concentrated sectors (noncrossovers). The findings show that female-owned enterprises in male-dominated sectors perform better on average than those in female-concentrated sectors, with firms achieving higher profits and having more employees. The descriptive results show that crossovers do not necessarily have more education or greater skills than noncrossovers. Rather, women's relationships and networks, especially those provided through male relatives, and being opportunity-driven entrepreneurs appear to influence the likelihood of entering a more-profitable, male-dominated sector. The study explores the implications and challenges of encouraging female entrepreneurs to enter male-dominated sectors, in an effort to provide new insight into how the earning gap between male and female entrepreneurs can be closed
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 2
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: World Bank E-Library Archive
    Series Statement: Other papers
    Abstract: This case study tells the story of the evolution of psychometric credit scoring as an innovative solution in a World Bank operation, from its humble beginnings as a small pilot in Ethiopia, to the current movement to replicate its use for similar challenges in countries across the continent in Tanzania, Zimbabwe, Madagascar, and beyond. Fintech is commonly defined as an industry composed of companies that use technology to make financial systems more efficient. The story is one of both achievements and setbacks, just as the future of fintech holds both promise and limitations. It is shared with a view to better understand how psychometrics and fintech more broadly can be utilized to solve critical development challenges, and help get finance to those who need it most around the world
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  • 3
    Language: English
    Pages: 1 Online-Ressource (36 pages)
    Parallel Title: Erscheint auch als Alibhai, Salman Evening the Credit Score?: Impact of Psychometric Loan Appraisal for Women Entrepreneurs
    Keywords: Access To Finance ; Asset Ownership ; Entrepreneurial Finance ; Finance and Financial Sector Development ; Gender ; Gender and Poverty ; Gender and Social Development ; Innovative Loan Appraisal ; Microenterprises ; Microfinance Lending ; Private Sector Development ; Property Rights ; Women's Access to Business Lending ; Women's Entrepreneurship
    Abstract: Women's lower rates of ownership of collateralizable assets are a constraint to accessing larger business loans. This paper tests the impact of using psychometric credit scoring as a substitute for collateral for loans up to USD 7,500, via a randomized controlled trial with a microfinance institution in Ethiopia. The paper finds positive impacts on women's access to credit, and survival of their firms during the COVID-19 pandemic and conflict. Firms that remained operational were profitable; but there is limited evidence of impact on firm growth under these circumstances. The study showcases the potential for using innovative technologies to extend entrepreneurial finance to underserved markets
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  • 4
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Policy Notes
    Abstract: Across the world, small-scale lenders - including microfinance institutions (MFIs), community-based financial institutions, and other nonbank financial institutions - have grappled with uncertainty through the Coronavirus disease 2019 (COVID-19) pandemic as portfolio quality deteriorated and capital buffers were drawn down. Ethiopia's microfinance borrowers - particularly micro and small enterprises (MSEs) are currently facing a financing squeeze that undermines their resilience during the COVID-19 crisis and threatens to slow their recovery. Although Ethiopian MFIs entered the crisis in good financial health, they soon began to face deteriorating portfolios and a contraction in liquidity. Drawing on data collected from a panel of major MFIs, this policy brief provides an overview of the microfinance lending squeeze in Ethiopia and outlines ways to overcome it. Sections one and two looks at the impact of the COVID-19 pandemic on Ethiopian MFIs and on their borrowers, respectively, and show how MFIs responded to liquidity constraints by cutting off financing to MSEs. Sections three and four discuss possible ways out of the crisis, outlining four concrete ways to ease the squeeze and highlighting new interventions in Ethiopia that provide emergency financing to MFIs and the MSEs they serve. The aim of this brief is to shed light on the lending squeeze in Ethiopia, and to share lessons for post-pandemic microfinance lending globally
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