Access to microcredit and women’s entrepreneurship: evidence from Bangladesh

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    This paper intends to assess the impact of access to microcredit on women’s entrepreneurship in Bangladesh. The descriptive statistics and multivariate techniques have been used to achieve the objective of the paper. The study uses Household Income and Expenditure survey (HIES) 2010 data set. The HIES 2010 survey covers 12,240 households from all districts in the country. Considering the endogeneity in the microcredit program participation of women, the study uses an instrumental variables technique (IV method) to assess the impact of access to microcredit on the entrepreneurial status of women. After adjustment for the endogeneity, the results from the multivariate analysis indicate that access to microcredit has a significant and positive impact on women’s entrepreneurship. It also has a significant and positive impact on men’s entrepreneurship and the marginal effects of access to microcredit are stronger on men’s entrepreneurship than on women’s entrepreneurship.

     

    Keywords: Access to Credit, Women’s Entrepreneurship, IV Technique, Bangladesh

    JEL Codes: L26, O26, J16