Can basic entrepreneurship transform the economic lives of the poor?
The world’s poorest people lack capital and skills and toil for others in occupations that others shun. Using a large-scale and long-term randomised control trial in Bangladesh this paper demonstrates that sizable transfers of assets and skills enable the poorest women to shift out of agricultural labour and into running small businesses. This shift, which persists and strengthens after assistance is withdrawn, leads to a 38% increase in earnings.
