Paper to be presented at the 35th DRUID Celebration Conference 2013, Barcelona, Spain, June 17-19 Fishing for Complements: Microcredit, Entrepreneurial Opportunity, and Livelihood Diversification in Coastal India Esther Leibel New York University Stern School of Business
[email protected] Renee Rottner New York University Stern School of Business
[email protected] Jui Ramaprasad McGill University Desautels School of Management
[email protected] Brennan Davis Baylor University Hankamer School of Business
[email protected] Abstract Policymakers promote microenterprise, yet scholars know little about the factors that enable the extremely poor to complement their income. We draw on a unique dataset of microcredit loans designed to help marine fisherwomen in Kerala, India, pursue off-season microenterprise opportunities. We find that even the most marginal resources available to these women?their human, social, and financial capital based on their education, income, prior work experience, and prior loan experience?predict the time to first enterprising loan. These findings illuminate the paths taken by the poor towards micro-entrepreneuring and more sustainable livelihoods. Jelcodes:Q01,O15 FISHING FOR COMPLEMENTS: MICROCREDIT, ENTREPRENEURIAL OPPORTUNITY, AND LIVELIHOOD DIVERSIFICATION IN COASTAL INDIA Mampally is a fishing village 40 km north of Thiruvananthapuram , the capital of the Indian state of Kerala. Like everyone in Mampally, Briget was born into the fish trade. But Briget sensed a business opportunity and started a small retail shop at her home selling vegetables. Profit from this small business amounted to $1 a day, and combined with her husband’s income from collecting coconuts, helped her bring up two sons and a daughter.1 Entrepreneurship is a matter of survival for Briget and the 2.5 billion people who live on less than $2/day2.