Saving for Microenterprise in Individual Development Accounts: Lessons From the American Dream Demonstration

Saving for Microenterprise in Individual Development Accounts: Lessons From the American Dream Demonstratio

Integrating Savings Into Microenterprise Programs for the Poor: Do Institutions Matter?

Numerous theoretical frameworks have been used to explain factors that influence outcomes of poor families engaged in self-employment. Theories related to human capital, social capital, andfinancial assets have guided most studies. Using data from fourteen institutions promoting self-employment among the poor, and drawing on the institutional theory, this study finds that theories related to individual influences do not adequately explain all the phenomenon.Controlling for a wide range of individual characteristics, there is a statistically significant association between institutional influences and participants’ outcomes. Policy makers shouldconsider a range of institutional characteristics when designing policies and programs aimed atpromoting self-employment among poor families

The Role of Informal Social Networks in Micro-Savings Mobilization

The influence of informal institutions on economic outcomes for low income individuals and households has received little attention in the United States. Yet, drawing on social capital theory and existing studies from developing countries where informal institutions have been widely used in promoting economic opportunities offamilies in poverty, one would expect these institutions to have positive effects on the economic outcomes of low income individuals in the context of an IDA program. Using a sample of 840 respondents who were enrolled in a community action program, this study assesses the effects of informal networks of social support on performance in a matched savings program. Results show partial support for the hypothesized relationship. Specifically, an increase in the amount of help a respondent gives to members of her community is inversely related to performance in an IDA program. This may imply that although informal networks have mutual benefits for both the individual and community, economically these benefits may be mixed. Among low income individuals saving in an IDA program, participating in such networks may constrain the economic resources available to them or their households; hence impacting their performance negatively

Contractual Children Savings Accounts in Low Resource Communities: Who Saves?

This study examines variation in saving behavior of poor families enrolled in a children savings accounts program for orphaned and vulnerable school-going children in Uganda. We employ multilevel analyses using longitudinal data from a cluster-randomized experimental design. Our analyses locate the following significant results: (1) financial institutions' characteristics affect average monthly savings and deposit frequency; (2) reported high levels of family cohesion are associated with higher deposit frequency; (3) children in the care of female guardians report higher average monthly saving and deposit frequency. The study has the following key implications: institutions and family relations matter in children savings mobilization

Saving and Asset Accumulation Among Low-Income Families With Children in IDAs

Research indicates that low-income families with children have many motives to save, however, the costs of raising children, low wage employment, means tested programs, and the need for child care make it difficult for them to save. Using data from the American Dream Demonstration (n=1,801), this study examines saving performances of low-income families with children in a matched savings program – Individual Development Accounts (IDAs). The results indicate that households with children in IDAs can save when they are provided structured opportunities. In addition, this study finds that institutional factors, not merely individual characteristics, are highly associated with IDA saving performance, and are important in explaining saving performances in IDAs. Implications for policy makers and program administrators to better assist low – income families to save and accumulate assets in IDAs are given

Using Individual Development Accounts for Microenterprise Development

This study examines whether there is a role for microenterprise development as an anti-poverty strategy in the United States. This question is important because skeptical views exist regarding whether, generally, poor Americans would have the enthusiasm to undertake the risk of dealing with small-businesses, especially given that the United States has a public welfare system to take care of the poor and “abundant jobs” for those with the skills—compared to most developing countries where the only alternative open for a family investing in a small-business may be starvation. Using data from 14 community-based programs promoting small-business investment through Individual Development Accounts (IDAs), this study finds that overall there is a considerable level of interest in saving for and investing in small-businesses among poor Americans, including those who are less advantaged in terms of income poverty and employment. Policy makers should thus consider promoting IDAs/subsidized savings for small-businesses development as a potentially viable strategy to address income poverty and inequality in the United States

Microenterprise Performance: A Comparison of Experiences in the United States and Uganda

This article compares microenterprise performance in the United States and Uganda. In-depth interview data and published sources suggest that many of the same factors affect business performance in both countries although scale and details vary considerably. Micro, mezzo, and macro strategies are proposed to maximize entrepreneurial effort, reduce barriers, and strengthen institutional and policy support in both contexts

Economic Empowerment as a Health Care Intervention Among Orphaned Children in Rural Uganda

This study evaluated an economic empowerment intervention to reduce HIV risks among orphaned children in Uganda. Children (n=97) were randomly assigned to receive an economic intervention or to a control arm. Data obtained at baseline and 12-month follow-up revealed differences on HIV prevention attitudes, educational plans, and child-caregiver relationship for intervention arm children relative to control children. Findings lend support to use of economic empowerment interventions for HIV risk reduction among orphaned children

Cancer in Youth Living With HIV (YLWHIV): A narrative review of the access to oncological services among YLWHIV and the role of economic strengthening in child health

Youth Living with HIV/AIDS (YLWHIV) have a higher risk of developing immunodeficiency related illnesses including certain cancers than their general population counterparts of the same age. This narrative review of current available literature describes factors associated with pediatric access to oncological services, and the role economic strengthening could play in improving health outcomes for this vulnerable population. Findings suggest that both HIV-infected and -uninfected children living in low and middle-income countries struggle with access and adherence to cancer treatment and care. Cost of treatment is a major barrier to access and adherence. Asset-building savings programs may increase financial security and subsequently result in better health outcomes although they have not been utilized to improve access to cancer treatment

Saving in Low-Income Households: Evidence From Interviews With Participants in the American Dream Demonstration

Saving in Low-Income Households: Evidence From Interviews With Participants in the American Dream Demonstratio