Does bundling credit and enterprise development services promote growth of micro and small enterprises?: Evidence from a randomized control trial in Indonesia

Our study evaluates pilot projects that the ILO in Indonesia implemented with 13 financial service providers (FSPs). These pilots were carried out as part of the broader Promoting Micro and Small Enterprises through Improved Entrepreneurs’ Access to Financial Services (PROMISE-IMPACT) project.

In the RCT, the bundled services were tested with over 5,000 clients in two provinces of Indonesia. As part of the intervention, loan officers first went through a training of trainers (TOTs) and training of counselors (TOCs) training courses. More than 170 loan officers were trained to become trainers and/or counselors. Trained loan officers then delivered a two-day classroom training and/ or carried out five individual counseling sessions with the clients. It was expected that training, counseling, or a combination of the two would improve the performance of the businesses.