Vulnerability, risk management and overindebtedness
Innovation:
Non-Financial Services: Entrepreneurship training
Entrepreneurship training for clients based on the ILO Generate and Start Your Business materials (GYB-SYB). The training was delivered by loan officers and aimed at improving the entrepreneurial skills of clients to foster business development.
Increased income could be reinvested in client businesses, used for punctual loan repayment or consumption smoothing.
Results:
Strongest positive results: 13% treatment effect in perception of lower barriers to entrepreneurship
Positive impact on asset building: Business profit increased by PHP 2’000 (approx. USD 50) which was almost double the baseline profit, ownership of motorized vehicles increased by 3.5%
Positive impact on overindebtedness: Incidents of late repayment decreased by 4%, taking out a loan to repay another loan decreased by 10%
Positive impact on risk management 5% increase in use of microinsurance to cover unforeseen expenses
