Micro credit for Sustainable Development in Angola
The general question underlying this project is the following: Under which conditions does microfinance actually assist the poor to move out of poverty and build sustainable livelihoods? This is an important question to answer, given the prevalence of microcredit programs and the extent of donor involvement in microcredit institutions. Our focus will be an analysis of human capital and social capital constraints facing poor entrepreneurs in Angola.
Through a combination of survey and experiment methodology, we will elicit levels of schooling and trust among microfinance clients of the Development Workshop (DW) system, and relate this to their performance as entrepreneurs. The results will provide insights into how important human and social capital is for microfinance clients to succeed in building a profitable business, which gives a basis for policy interventions to this end.