This study evaluates the impact of business-development-support programs (credit, training,
and a combination of both) on the performance of micro- and small enterprises (MSEs) in
Ethiopia. Using 2015 Ethiopian urban survey data and employing endogenous-switching
regressions for multiple treatments, we document a positive and significant effect of credit,
training, and a combination of training and credit on MSEs. Our results highlight the
heterogeneity in treatment effects between women- and men-owned MSEs: women-owned
businesses do not benefit from access to treatments. Our results suggest that improving the
performance of MSEs requires fine-tuned interventions that meet the specific needs of men
and women who own small businesses rather than one-size-fits-all programs.
