Please use this form to submit your study for inclusion into our database. It will be checked by a member of the Innovation Growth Lab team, who may be in contact to ask for more information. Your email address * Your name * Title * The name of the study Short summary A loan programme for SMEs in the Philippines. Results forthcoming. A brief description of the project's goals and its current state Abstract <p>How does access to credit affect the growth of small and medium enterprises – both firms receiving loans as well as their competitors, suppliers and customers? Limited access to credit is commonly identified as a key constraint to SME growth, but little evidence exists of the direct and indirect effects of loans on small firms in a given market. Researchers are working with a large bank in the Philippines, using random assignment to offer loans to SME applicants who fall just below the threshold to be automatically approved for a loan. The researchers will compare the firms that received the loans to a similar group that did not. Comparing the two groups will allow for a better understanding of the impact of loans on firm performance and growth as well as any additional effects on firms in the same market or in the loan recipient’s supply chain.</p> The full abstract of the study, if available Links https://www.povertyactionlab.org/evaluation/impact-credit-scoring-small-and-medium-enterprise-sme-lending-and-performance-philippines Links to any published papers and related discussions Authors * Affiliations Academic and other institutes that the authors of the study are members of Delivery partner Organisations involved in delivering the trial, if appropriate Year Year Year199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026 Month MonthJanFebMarAprMayJunJulAugSepOctNovDec Day Day12345678910111213141516171819202122232425262728293031 Journal Journal publishing the study, if available Publication stage * Working Paper Published Ongoing Research Forthcoming Discussion Paper Research theme * Entrepreneurship Innovation Business Growth Country Country or countries where this study took place. Topics What sort of topics does the study cover? Sample attributes Hypotheses / research question Can a credit scoring system increase lending to SMEs in emerging markets? Does access to credit improve the borrowing businesses' profitability? How does increased access to credit affect borrowers' competitors, suppliers and customers? Sample Trial population and sample selection 45 branches of the Development Bank of the Philippines (DBP) advertised the new Retail Lending Scheme to SMEs in their area and encouraged application; some of the branches were asked to target randomly assigned sectors. Applicants were scored using software and those falling into pre-defined range were randomly allocated to treatment (receive a loan) or control (comparison group). Number of treatment groups Size of treatment groups Size of control group Unit of analysis Clustered? Yes No Cluster details Trial attributes Treatment description Businesses receive a loan between PHP 300,000-10,000,000 ($5,590-$186,200), with terms ranging from 3 months to 5 years. Rounds of data collection Baseline data collection and method Survey conducted prior to loan disbursement. Data collection method and data collected Evaluation Outcome variables <p>Investment, profit.</p> Results <p>Not yet available.</p> Intervention costs Not available. Cost benefit ratio Reference Bryan, G., Jakiela, P., & Karlan, D., [forthcoming]. 'Direct and Indirect Impacts of Credit for SMEs'. Innovations for Poverty Action - Project Registry. Citation for use in academic references
