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
DOI:
10.1596/1813-9450-10230
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