| Summary: | This report presents an updated methodology to estimate
the number of SME jobs created as a result of SME loans.5
It analyzes job multipliers across developing countries
through a firm-level regression of annual employment
change on loan size. Put simply, the framework presented
here analyzes the relationship between the size of loans to
SMEs and the jobs these enterprises create.
This methodology builds on previous papers that found
an association between access to finance and job growth, including Ayyagari et al. (2016),6 and draws on data from
the World Bank Enterprise Survey (ES) and IFC’s own
“tracer surveys” to develop a new SME jobs multiplier that
would allow for the estimation of job creation effects that
correlate with SME loan size.7 The use of tracer surveys
has enabled IFC to analyze how the SME customers of a
particular IFC partner financial institution have benefited
from greater access to finance and generated positive
developmental impacts such as greater SME growth,
productivity, and female ownership.
|
|---|