Microfinance at the margin: Evidence from Bosnia and Herzegovina

A substantial part of the world’s population has no or only limited access to formal financial services. Many of the poor depend on informal networks and family ties – which are often less reliable or relatively expensive – and this may constrain potential entrepreneurs in executing profitable investment projects. To analyse to what extent a lack of credit may inhibit entrepreneurship and perpetuate poverty, this EBRD Impact Brief reports on a randomised field experiment in Bosnia and Herzegovina.

A substantial part of the world’s population has no or only limited access to formal financial services. Many of the poor depend on informal networks and family ties – which are often less reliable or relatively expensive – and this may constrain potential entrepreneurs in executing profitable investment projects. To analyse to what extent a lack of credit may inhibit entrepreneurship and perpetuate poverty, this EBRD Impact Brief reports on a randomised field experiment in Bosnia and Herzegovina.