Finance, Gender, and Entrepreneurship: India’s Informal Sector Firms

How does informal economic activity respond to increased financial inclusion? Does it become more entrepreneurial? access new financing options change the gender configuration of and, if so, in what ways and directions? We take advantage nationwide data collected 2010/11 2015/16 by India’s National Sample Survey Office on unorganized (informal) enterprises. This period was one rapid expansion banking availability aimed particularly at unbanked, under-banked, women. find strong empirical evidence supporting crucial role promoting entrepreneurship among sector firms India. Our results are robust alternative specifications measures constraints using an approach combining propensity score matching difference-in-differences. However, we do not conclusive that inclusion leads a higher likelihood women becoming entrepreneurs than men sector.