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Employing and empowering marginalized women: A randomized trial of microenterprise assistance

We study a program to help impoverished Ugandan women increase earnings and autonomy through nonfarm business. In half of 120 villages, 15 marginalized people (86% women) received business training, $150, and supervision and advising. We evaluated the full program, supervision, and encouragement to form support groups. Almost a third of grants were invested within a month, typically in retailing. 16 months later, business ownership and incomes doubled. Expecting supervision and advice slightly increased investment, and receiving it increased business ownership but not incomes. Group encouragement increased cooperative activities and finance, raising earnings. Overall, however, there was little impact on autonomy. (JEL codes: J24, O12, D13, C93)