Startups in developing countries tend to grow more slowly on average than those in high-income countries, but the reasons why are not well understood. Researchers analyzed data on all manufacturers with more than 10 employees in Colombia and the U.S. over a period of 30 years to compare employment growth among manufacturers in each country.
Exposure to violence, conflict, and other traumatic life events can have harmful effects on the economic, human, and social capital of individuals and their communities. Entrepreneurship and business skills training curricula have been commonly adopted as an approach for promoting socio-economic inclusion in fragile settings.
Early educational experiences have been found to have a positive effect on students’ choice of math and science courses in later learning as well as their career aspirations. In Colombia, researchers are conducting a randomized evaluation to test the impact of an interactive multimedia preschool program on the math and science skills of children and the gender and racial stereotypes and beliefs of children, educators, and parents.
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.
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.
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.
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 governments in low- and middle-income countries, such as Brazil and Mexico, have adopted conditional cash transfer (CCT) programs as a social safety net, but most recipients of these transfers have little or no experience with formal financial 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 management quality are an important contributor to productivity differences across countries. A key question is how best to improve poor management in developing countries. This evaluation tested two different approaches aimed at improving management in Colombian auto parts firms. The first was an intensive and expensive one-on-one consulting, while the second provided consulting to small groups of firms at approximately one-third of the cost of the individual approach.
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.
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.
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.