Dean Karlan discusses his research on microfinance with Tony Sheldon and Rodrigo Canales at the Yale School of Management. An excerpt:

"We did discover some important patterns. For instance, in India, we saw an increase in business starts for households that had no business to begin with. If they already had a business, though, we didn't see any increase in what they were doing. There was definitely a ceiling above which they just did not excel. Microenterprises are not growing into the small and medium enterprises that are engines for growth."

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