Download Business and Financial Literacy for Young Entrepreneurs

yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Financial economics wikipedia, lookup

Systemic risk wikipedia, lookup

Global financial system wikipedia, lookup

Interest rate ceiling wikipedia, lookup

Financialization wikipedia, lookup

Financial literacy wikipedia, lookup

Business and Financial Literacy for
Young Entrepreneurs:
Evidence from Bosnia-Herzogovina
by Miriam Bruhn and Bilal Zia
Discussant Comments
Margaret Miller
Provides a strong environment for financial
literacy intervention – best case scenario
– Looks at a complete training program offered by a
qualified instructor (good case) – NGO
Entrepreneurship Development Center, faculty from
Univ. of Tuzla, used interviews to adapt curriculum to
needs of target population
– High teacher – student ratio 1 to 6 or 1 to 10
– Monetary incentive – US$3 5 for participating, free
– Business loan clients in good standing (according to
Partner’s definition)
– Businesses with profits that are higher than GDP per
capita, 5 years old, have one or more employees
Provides a strong environment for financial
literacy intervention – best case scenario
Motivated students
• Highly motivated – small group of 117 that actually
took the training , 39% of sample that had indicated
interest in training
• People who had been late on at least one payment
were more interested
• Women were less interested
Would like to have seen the paper address this
potential selection bias more directly
Differential impacts by baseline
financial literacy level
• People with below average levels of financial
literacy had greater increases in knowledge
measured on the survey
• People with above average levels of financial
literacy to report higher profits, greater sales
• People in treatment group 22% less likely to
mix personal and business accounts –
regardless of financial literacy level
Questions going forward
• What resulted in the higher profits and sales?
• Is this a cost effective approach?
• How do you reach the populations that have
less motivation, interest
– Low levels of financial literacy
– Women