A lack of access to finance can impede the potential for growth among small firms. To meet this finance gap and to encourage high-growth entrepreneurship, governments and multilateral agencies throughout the developing world often directly fund small and medium enterprises. Governments, however, have little guidance when it comes to choosing the firms with growth potential, and making sure that limited funds are targeted where they will spur the most growth.
Despite a substantial decline in child mortality in recent years, millions of children still die from preventable diseases every year. In this study in rural Uganda, researchers evaluated the impact of a micro-franchise model, which incentivizes door-to-door community health workers. The program reduced mortality among infants and children, improved knowledge about health among clients, and increased the visits that households received from health workers.
Numerous developing country governments, such as Brazil and Mexico, have adopted conditional cash transfer (CCT) programs as a social safety net, providing billions of dollars in transferred funds to millions of low-income citizens, in many cases by depositing them directly into a bank account. However, most of these recipients have little to no previous experience with formal financial products, thus providing the opportunity for product-linked training.
Many microentrepreneurs in developing countries may lack the training or skills to make the most effective financial and business management decisions. In India, researchers tested a low-cost and easy-to-scale financial capability intervention that delivered easy-to-remember and easy-to-adopt rules of thumb via voice-based mobile phone messages.
Improving access to family planning in Sub-Saharan Africa has the potential to help women and couples achieve their desired family size and avert unintended pregnancies and unwanted births. It may also have longer-term effects by improving women’s health, educational attainment, and socio-economic status. However, little is actually known about the effectiveness of family planning.
Although the success of microcredit was originally attributed to the group loan model, there is little evidence on the relative impacts of individual lending versus group lending on household consumption, income, and enterprise creation. In this study, researchers randomly selected existing group-lending centers to convert to an individual liability model.
Small farm productivity in sub-Saharan Africa lags behind that in Asia and other parts of the world. One reason for this may be low rate of adoption of inputs such as fertilizer. In Tanzania one reason for this may simply be the absence of local retailers, especially in more remote areas. Researchers are testing if their absence may be because of the costs of entering these markets or demand, with interventions targeted to each.
Microcredit has been successful in bringing formal financial services to the poor, but given that many microcredit clients live in poverty, this success has sparked a debate surrounding the question of how to set interest rates. In Ghana, researchers set out to measure how different interest rates on individual loans affect demand for the loans and if and how different interest rates affect borrower profile.
Industrial sector development to boost mass hiring is seen as important to poverty alleviation at the macroeconomic level. But how those jobs, particularly in early stages of industrial sector development, affect the workers themselves and what the workers prefer are less well-understood. In Ethiopia, Innovations for Poverty Action worked with researchers measure the effects of being offered an industrial job or an entrepreneurship promotion program.
Microenterprises, businesses with one to nine employees, in low-and middle-income countries face disadvantages compared to larger firms when it comes to sourcing inventory. Because of their smaller purchasing quantities, they may pay higher costs and have to travel frequently to restock.
Around the world, 168 million children are engaged in child labor, and in the Philippines many of the children working illegally are in occupations that pose a threat to their health and safety. However, poor families may have little other choice to support themselves. The government of the Philippines aims to help families avoid child labor by providing them with a one-time asset transfers equivalent to US $500 and training in using the asset to develop a livelihood.
Incentive (or performance-based) pay has been shown to increase worker productivity in high-income countries, yet it is uncommon in developing countries and little evidence exists on the impacts of individual- and group-level incentives in these contexts. Cultural norms, such as the desire to stand out or get ahead, may influence how people respond to incentives.
Lack of access to finance constrains small business growth—a problem that is exacerbated for Muslim business-owners, many of whom do not take out traditional loans for religious reasons. Innovations for Poverty Action is supporting research in Pakistan on a lease-based product that features more flexible repayment schedules, allows businesses to share risk with a large microfinance institution, and complies with local Islamic financial norms.
The agricultural sector in Sub-Saharan Africa has been changing in recent years, with more farmers living near urban areas, selling more of their crops for income, and also engaging in more off-farm work and non-agricultural activities to supplement farm revenue. However, little evidence exists thus far on how these trends are affecting nutrition, especially that of the most vulnerable members of farming families—women and children.
Close to 450,000 people in the U.S. die prematurely each year from smoking-related causes and annual losses in productivity due to smoking-related morbidity top US$96 billion. While many programs exist to help people quit smoking, many have only been effective in the short term. This study will examine whether a combination of positive and negative commitment devices can induce long-term smoking cessation in smokers from a low-to-moderate income background in Connecticut.
In emerging markets, women own nearly one-third of small and medium enterprises, but their average growth rate is significantly slower than that of male-owned SMEs. Working women in developing countries also often face significant stress from the combination of long working hours, family responsibilities and barriers to work that requires being away from home.
Agricultural production entails large risks from crop failure that can leave small farmers who lack other sources of income without enough food for the year. Attempts to reduce these risks through insurance contracts have typically been unsuccessful because farmers have chosen not to buy insurance when it comes time to plant.
For new democracies and societies emerging from conflict, effective systems of dispute resolution are essential to maintaining a lasting peace and preventing violence. In Liberia, researchers examined the impact of introducing alternative dispute resolution (ADR) trainings on the rate at which community members resolved property disputes, the level of satisfaction with the resolution, and the incidence of violence related to the disputes.
In theory, local government meetings provide important opportunities for citizens to be directly involved in decisions about important services that affect their daily lives. In practice, citizens can be disengaged from local governments, either because they are uninformed or because they do not believe their involvement is welcome or effective.
Curbing deforestation in developing countries may be a cost-effective way to reduce carbon emissions and address climate change. Innovations for Poverty Action worked with researchers to evaluate the effectiveness of a payments for ecosystem services (PES) program, in which Ugandan landowners were paid not to cut forest trees on their property.