The impact of gender and business training for female microfinance clients in Vietnam

The impact of gender and business training for female microfinance clients in Vietnam

Business training leads to an increase in business knowledge, improvements in business practices, operations and sales, as well as income and assets for male microfinance clients. Moreover, business failure is lower for males who receive business training. Although business knowledge of women increases either, women do not put their knowledge into practice. As a result, training does not increase income and assets of female microfinance clients.

This study documents the impact of offering a gender and business training to female microfinance clients in Vietnam using a randomisation control trial (RCT). A specific feature of the study is that a random group of female borrowers were allowed to take their husbands to the trainings. The study explicitly tests whether the impact of the training is conditional on the presence of husbands. The study also differentiates between short term effects and longer term effects of the training.

Policy recommendations:

  • provide business training in addition to microfinance. The study clearly suggests that providing business training to microfinance clients is beneficial for clients, especially for clients with low levels of business knowledge
  • add a gender component to the business training. The study suggests that adding a gender component to the trainings is relevant

 

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