Recent evidence has demonstrated the difficulty of stimulating entrepreneurship and reducing poverty through microcredit. In rural Morocco, where microcredit take-up is relatively low, researchers are conducting a randomized evaluation to test the impact of improved microcredit loan design on its take-up, as well as the welfare and business conditions of borrowers.
This project is one of the few to rigorously evaluate the impact of a microcredit program. It takes advantage of the expansion of Al Amana, Morocco's largest microfinance institution, into rural areas of Morocco where access to formal credit is very low. 50% of households sampled in initial surveys indicated that they were in need of credit in the previous year, but never actually requested it.
Many people in the developing world lack access to clean water. Can providing clean water make kids healthier? Will children attend school more often? Will adults be able to work more regularly? We worked with the Government of Morocco to evaluate the impact of offering piped water connections at a subsidized price, and on credit.
Little empirical evidence exists on the effectiveness of business training and support. In particular, the extent to which such a support program might raise revenues and augment survival rates of new enterprises is unclear.