Can microcredit help unlock a poverty trap for some people by putting their businesses on a different trajectory? Could …, India, we find that “gung ho entrepreneurs” (GEs), households who were already running a business before microfinance … facilitate escape from a poverty trap …

years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation … “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably …, these effects persist two years after microfinance was withdrawn from Hyderabad. However, any persistent benefits to …

of a particular microfinance institution (Spandana) while the remainder were not, although other MFIs were free to enter …. We found no changes in any of the development outcomes that are often believed to be affected by microfinance, including …