Evaluation
Microenterprises often struggle to survive and grow after their initial start-up. A key issue for policymakers is understanding how to best encourage the survival and growth of resource-constrained firms by using policy tools like unrestricted cash grants and conditional transfers of materials or equipment. Researchers conducted a randomized evaluation of male- and female-owned firms in Ghana to identify and distinguish the impacts of cash and in-kind transfers on the profits of microenterprises. Results indicate that the impacts of cash and in-kind transfers vary according to firm size, profitability, and gender, where female-owned, high-profit firms experienced substantial growth with the support of in-kind grants.