This project piloted the first ever randomized evaluation of ‘microfranchising,’ measuring the impact of a program intended to help young women in Nairobi launch small-scale franchise businesses. Preliminary findings show that young women involved in microfranchising are more likely to become self-employed entrepreneurs as a result of the intervention. This, in turn, suggests that the burden of devising a business plan significantly contributes to hindering entrepreneurship in developing countries. The experiment is currently being scaled up to a larger multi-arm impact evaluation that will assess the impact of the microfranchising program compared to both a pure control and an unrestricted cash grant treatment.
Brudevold, A.; Honorati, M.; Jakiela, P.; Ozier, O. PEDL Research Note. The Impacts of Microfranchising on Young Women in Nairobi. Centre for Economic Policy Research (CEPR), (2014) 3 pp.