Skip to Main Navigation

Can Business Grants Mitigate a Crisis Evidence from Youth Entrepreneurs in Kenya during COVID-19 (English)

COVID-19 was a major shock to youth entrepreneurs and their businesses in Kenya. This paper studies the causal impact of grants—worth two months of baseline business revenue—and business development services as potential mitigation measures. Using multiple rounds of phone surveys up to seven months from the start of the pandemic, the analysis finds that youth who are assigned business grants or a combination of grants and business development services are significantly more likely to maintain a business, earn more revenue and profits, retain employees, and report higher confidence and satisfaction with life. There are no corresponding effects of business development services alone, although the follow-up period is extremely short for training effects to materialize. These results suggest that cash infusion for young entrepreneurs in times of an aggregate shock can be instrumental in moderating its immediate harmful impacts.

Details

  • Author

    Domenella,Yanina Eliana, Jamison,Julian C, Safir,Abla, Zia,Bilal Husnain

  • Document Date

    2021/12/07

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS9874

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Kenya,

  • Region

    Africa East,

  • Disclosure Date

    2021/12/07

  • Disclosure Status

    Disclosed

  • Doc Name

    Can Business Grants Mitigate a Crisis ? Evidence from Youth Entrepreneurs in Kenya during COVID-19

  • Keywords

    youth; Micro and Small Business; long-run impact; complete secondary education; business development service; life satisfaction; business performance; source of income; source income; treatment effect; emerging market economy; million people; household food expenditure; benefits to employee; change in income; impacts on business; support for entrepreneur; gdp growth rate; amount of investment; lack of demand; approach to teaching; standard of living; access to capital; food consumption level; individual level; living standard; baseline survey; new business; income generation; business ownership; Cash flow; business survival; summary statistic; business sector; causal impact; standard error; regression analysis; study design; business startup; field study; average profit; first wave; monthly profit; cash grant; household income; several months; economic shock; international flight; treatment group; school closure; Emerging economies; emerging economy; business support; survey questions; standard deviation; indicator variable; grant recipient; social distance; negative effect; negative changes; round analysis; good performance; business income; classroom training; financial counselor; managerial skill; business model; support measure; jobless growth; physical asset; substantial variation; humanitarian crisis; panel data; youth employment; earning opportunity; vulnerable youth; entrepreneurship support; job market; eligible applicant; average revenue; mobile money; fee waiver; formal sector; corporate tax; recent estimates; export crop; oecd countries; business profit; unemployment rate; Economic Stimulus; research design; enterprise recovery; pension program; unintended effect; long-term impact; food insecurity; social relationship; business training; natural disaster; adverse outcomes; crisis recovery; causal chain; sliding scale; present analysis; welfare outcome; Doing Business Reports; quantitative evidence; science advance; low-income household; household data; rapid assessment; long-run effect; Jobless Recovery; business entry; gestation period; causal effect; disproportionate impact; retail trade; sectoral distribution; education level; gender balance; average age; alternative strategy; response rate; survey data; digital repository; classroom session; business knowledge; legal registration; funding source; business environment; business loss; marginal improvement; survey respondent; estimation strategy; economic sector; corresponding treatment; survival rate; business supply; selection bias; youth entrepreneurship; mitigation effect; field experiment; pandemic spread; macro level; government response; scarce resource; employee retention; Research Support; positive impact; grant money; sudden onset; aggregate shock; global economy; psychological benefit; trading partner; recent years; spot check; Mental health; ongoing study; average sales; mitigation measure; study period; digital business; aggregate analysis; open access; lost income; development policy

Downloads

COMPLETE REPORT

Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Domenella,Yanina Eliana Jamison,Julian C Safir,Abla Zia,Bilal Husnain

Can Business Grants Mitigate a Crisis Evidence from Youth Entrepreneurs in Kenya during COVID-19 (English). Policy Research working paper,no. WPS 9874,COVID-19 (Coronavirus) Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/259881638890834773/Can-Business-Grants-Mitigate-a-Crisis-Evidence-from-Youth-Entrepreneurs-in-Kenya-during-COVID-19