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Microcredit Impact on Business Performance: A Minor Field Study in El Salvador
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
2014 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Microcredits have become a popular way to include poor people in the financial market. Former research on the impact on business performance has provided divergent findings and its impact on the Salvadoran market is not yet investigated. This thesis takes on this problem by analysing and evaluating how the microenterprises in Usulután, El Salvador are affected by the participation in a microcredit program. By using a quantitative method the business performance of a treatment group is compared to that of a control group. The results show that participation in a microcredit program enlarged the enterprise size in terms of sales, total assets and equity, but did not have any significant impact on business profit, marginal return to capital or fixed asset. Regressions are conducted to describe what individual characteristics of the clients are the most important for the business performance. Clients with higher education and male clients over performed other clients.

Place, publisher, year, edition, pages
2014. , 71 p.
Keyword [en]
Microcredit Impact; Business Performance; Microenterprise; Usulután; El Salvador.
National Category
Economics
Identifiers
URN: urn:nbn:se:liu:diva-117894ISRN: LIU-IEI-FIL-A--14/01825--SEOAI: oai:DiVA.org:liu-117894DiVA: diva2:811765
Subject / course
Master Thesis in Economics
Supervisors
Examiners
Available from: 2015-05-13 Created: 2015-05-13 Last updated: 2015-05-18Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf