London School of Economics EOPP: Economic Organisation and Public Policy Programme LSE
EOPP: Economic Organisation and Public Policy Programme

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News Archive 2013

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EOPP: Recent Publications
Can Basic Entrepreneurship Transform the Economic Lives of the Poor?

Abstract

The world’s poorest people lack capital and skills and toil for others in occupations that others shun. Using a large-scale and long-term randomized control trial in Bangladesh this paper demonstrates that sizable transfers of assets and skills enable the poorest women to shift out of agricultural labor and into running small businesses. This shift, which persists and strengthens after assistance is withdrawn, leads to a 38% increase in earnings. Inculcating basic entrepreneurship, where severely disadvantaged women take on occupations which were the preserve of non-poor women, is shown to be a powerful means of transforming the economic lives of the poor.

Keywords: asset transfers, capital constraints, vocational training, occupational
choice, structural change, poverty.

Link to the paper


News Posted: 29 April 2013      [Back to the Top]