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.
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.
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.
In cities where crime tends to be concentrated in a small number of places, police forces often adopt geography-based approaches to crime reduction. However, increasing policing in one area may simply displace crime to another area, leaving the overall level unchanged. Researchers are working in Bogotá, Colombia to assess whether concentrated policing or increased municipal clean-ups in high-crime areas can reduce—rather than simply displace—crime.
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.
Can online sexual health education courses improve students’ sexual health knowledge, attitudes, and behavior? Do such courses also have positive effects on the peers of students who take the course? Researchers evaluated the impact of an online sexual health education course on the knowledge and sexual behavior of urban Colombian high school students. The education program led to significant impacts on knowledge and attitudes.
Small and medium enterprises are seen as promising engines of growth in developing countries but often fail to live up to their potential because of barriers to growth such as limited access to credit. Researchers used a randomized evaluation to measure the impact of introducing computer-generated credit scores on lending to micro and small enterprises in Colombia.