Microenterprises such as produce vendors face disadvantages compared to larger firms in sourcing inventory because they must travel frequently to restock and pay higher costs when doing so. Researchers evaluated Agruppa, a mobile phone-based technology service, which creates virtual buyer groups to buy more cheaply in bulk. The evaluation found that initial demand for the service was high, saving business owners time and expense, and increasing profits on certain staple goods.
Urban armed groups, especially criminal gangs, are a growing threat to peace and economic growth in cities across the world, and often exert state-like powers such as enforcing contracts, policing, and taxing businesses.
Globally, bureaucrats are responsible for the day-to-day matters of policy implementation and government service provision. However, we know very little about how bureaucrats’ own interests and biases influence the ultimate distribution of public goods and services. To measure how citizens’ identities and the characteristics of their petitions affect municipal bureaucrats’ bias and efficiency, researchers conducted a national-scale audit of two of Colombia’s largest social service programs.
In Colombia, as in many other countries, workers face many barriers to saving for retirement. The situation is much worse for informal workers, who make up about 65 percent of the total workforce in Colombia.
Micro-loans are a promising means of promoting entrepreneurship, but conventional loan products are often unsuited to the needs of small businesses in developing countries. Offering microenterprise borrowers the ability to postpone loan payments when needed may encourage long-term investments in business expansion and help owners cope with financial hardship.
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.
Startups in developing countries grow more slowly over their life cycle than those in high-income countries, but the reason why is not understood. Slow growth could be due to difficulties for firms’ increasing productivity or because of difficulties boosting demand for their products.
Police forces in cities tend to focus their efforts on the highest-crime areas, but increasing state presence in the highest crime spots may simply displace crime to other areas, leaving overall crime levels unchanged. In Bogotá, Colombia, researchers partnered with the city to measure the impact of either concentrated policing, increased municipal clean-ups, or both on crime reduction and displacement.
Financial products have the potential to help the poor, yet most financial institutions are driven by commercial goals, and their staff may not be incentivized to offer products most suitable to low-income clients. This audit study aims to determine the types of information institutions provide to low-income financial customers in urban Colombia, and identify any differences in institutions’ treatment of customers based on perceived financial knowledge.
Differences in managerial quality appear to be critical to explaining productivity differences across firms, with poorly managed firms potentially unable to take advantage of opportunities for high growth. The question this study seeks to address is how to bridge the management gap among small and medium enterprises (SMEs).
Small and medium enterprises in developing countries generally face a number of barriers to expanding their businesses and employing more workers, including limited access to credit and other financial services.
Small and medium enterprises (SMEs) are thought to be important drivers of growth in developing economies, but entrepreneurs in these countries face many barriers, including poor access to training, finance, and business networks. In Colombia, Fundación Bavaria’s “Destapa Futuro” (Open the Future) program identifies promising enterprises and provides them with a suite of financial, technical, business, and training resources.
Small and medium enterprises (SMEs) are thought to be important drivers of growth in developing economies, but entrepreneurs in these countries face many barriers, including access to business training, finance, and business networks. In Bogotá, Colombia, Fundación Bavaria’s “Destapa Futuro” (Open the Future) program identifies promising enterprises and provides them with a suite of financial, technical, business and training resources.
Microcredit banks may be able to operate more efficiently if their loan officers spread their workload evenly over time, resulting in a more stable cash flow for the bank—but loan officers, like many people, have a tendency to procrastinate. This evaluation in Colombia found that introduction of short term goals, positive reminders and incentives led to a significant change in the way loan officers allocated their time and improved performance.
Conditional cash transfer (CCT) programs have been proven effective at improving educational attainment in some settings, but there has been little rigorous evaluation of CCT product design. Researchers in Bogotá, Colombia, evaluated whether changing the timing and type of CCTs could lead to greater impact on educational attainment.