Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh

Muhammad Faress Bhuiyan (Corresponding Author), Artjoms Ivlevs (Corresponding Author)

Research output: Contribution to journalArticlepeer-review

93 Citations (Scopus)

Abstract

Microcredit has long been hailed as a powerful tool to promote livelihoods and reduce poverty through entrepreneurship. However, its impacts on people's subjective well-being remain underexplored. We present a unified theoretical framework for analyzing the effect of microcredit-enabled entrepreneurship on overall life satisfaction – a key manifestation of subjective well-being. Empirically, we apply an instrumental variable approach to a unique census-like household survey conducted in three villages of Bangladesh in 2013. In spite of having no direct effects, we find that microcredit borrowing has an indirect negative effect on overall life satisfaction, through increased worry. On a positive note, we find that female micro-borrowers experience an increase in satisfaction with financial security and achievement in life. We also provide evidence that micro-borrowers with higher levels of assets experience an increase in satisfaction with financial security.

Original languageEnglish
Pages (from-to)625-645
Number of pages21
JournalJournal of Business Venturing
Volume34
Issue number4
DOIs
Publication statusPublished - Jul 2019
Externally publishedYes

Keywords*

  • Bangladesh
  • Depression
  • Entrepreneurship
  • Female empowerment
  • Happiness
  • Life satisfaction
  • Microcredit
  • Worry

Field of Science*

  • 5.2 Economy and Business
  • 5.1 Psychology
  • 5.4 Sociology

Publication Type*

  • 1.1. Scientific article indexed in Web of Science and/or Scopus database

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