Skip to main content

Research Repository

Advanced Search

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

Bhuiyan, Muhammad Faress; Ivlevs, Artjoms

Authors

Muhammad Faress Bhuiyan

Tom Ivlevs A.Ivlevs@uwe.ac.uk
Associate Professor in Economics



Abstract

© 2019 The Authors 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.

Citation

Bhuiyan, M. F., & Ivlevs, A. (2019). Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh. Journal of Business Venturing, 34(4), 625-645. https://doi.org/10.1016/j.jbusvent.2018.09.005

Journal Article Type Article
Acceptance Date Sep 17, 2018
Online Publication Date Sep 27, 2018
Publication Date Jul 31, 2019
Publicly Available Date Nov 30, -0001
Journal Journal of Business Venturing
Print ISSN 0883-9026
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 34
Issue 4
Pages 625-645
DOI https://doi.org/10.1016/j.jbusvent.2018.09.005
Keywords microcredit, entrepreneurship, life satisfaction, happiness, depression, worry, female empowerment, Bangladesh
Public URL https://uwe-repository.worktribe.com/output/845869
Publisher URL https://doi.org/10.1016/j.jbusvent.2018.09.005

Files







You might also like



Downloadable Citations