Project Description
The objective of the Grameen Small Loan Study is to measure the effect of a single micro-lending program on the success of women creating or expanding small businesses in the New Jersey area. The sample comprises loan applicants who were recruited in groups of five and randomly assigned into treatment (received the loan) and control (did not receive the loan) groups. Although the Small Loan Study is not the first randomized control trial of microcredit/microfinance, no one has conducted an experimental design of microcredit/microfinance in the U.S. This study also provides the first ever randomized control trial of borrowers participating in a group-lending program.
Using a mixed-mode (CATI/field-initiated) method, DIR is administered follow-up surveys at 18 and 36 months after random assignment, with the option for a third survey at 60 months. In the absence of administrative records, the follow-up surveys will provide the bulk of data to be used in statistical analysis.