Many microenterprises in developing countries have high returns to capital, but also face risky revenue streams. In principle, equity offers several advantages over debt when financing investments of this nature, but the use of equity in practice has been largely limited to investments in much larger firms. The authors develop a model contract to make self-liquidating, quasi-equity investments in microenterprises. This contract has three key parameters...
Voir la suite
INFORMATION
-
2019/04/01
-
Document de travail de recherche sur les politiques
-
WPS8799
-
1
-
1
-
2019/04/01
-
Disclosed
-
Micro-Equity for Microenterprises
-
entrepreneur