Using monetary incentives to support female entrepreneurship in Abuja, Nigeria By: Imuetinyan Aiguwurhuo Faculty Advisor: Alessandra Cassar Department of Economics University of San Francisco

Outline Motivation Research Question Subject pool/ Location Experimental design/ Treatment Surveys/ Data Model and hypothesis Results Conclusion

Motivation Women entrepreneurs in Nigeria are held back by knowledge gaps, limited access to markets, and challenges regarding land ownership rights which in turn limits their capacity to access to finance (World bank report, 2014). Nigerian female entrepreneurs face problems attributable to socio-cultural factors. Cultural and social traditions play a large role in determining who becomes an entrepreneur; for example, social conditions in some parts inhibit women from starting their own businesses (World Bank, 1995).

Research Question/ Introduction Do cash rewards motivate female entrepreneurs in achieving their business objectives (Goals) in Abuja? Family Independence Initiative Model (FII) Developed by Maurice Lim Miller. This approach is centered on the principle that families could break cycles of Poverty through light behavioral nudges and harnessing social capital. National Centre for Women Development Agency of Federal Ministry of Women Affairs and Social Development. Provides training in skills development, and acquisition, income generation activities for Nigerian women.

Literature Country Contribution Source Monetary incentive Navi Mumbai, India -Employees remain more job satisfied and thus the monetary incentive schemes was able to increase the overall organizational success leading to reduction in employee absenteeism and percentage wastage. Surnis et al (2010) Female entrepreneurship Reviewed empirical research -Access to finance is one of the major obstacles for female entrepreneurs. -Female entrepreneurs have more difficulty gaining access to relevant financial resources needed to successfully launch a new venture or grow their existing business. Brush et al, (1992) Family independence initiative approach Medellin, Colombia -The combination of goal setting, issuing monetary incentive, and group support resulted in the highest outcome for both achieving individual outcomes and increasing total business sales. Alessandra Cassar et al, (2016) Our contribution Abuja, Nigeria -Our study contributes to the existing literature on the use of monetary incentives as a motivator in making individuals carry out a particular task for their self interest. Imuetinyan et al, (2018)

Subject Pool & Location Abuja capital city of Nigeria located in the centre of the country within the Federal Capital Territory (FCT). The subjects in the experiment were mostly female entrepreneurs enrolled in a training program at the centre between 20-55 years of age. In other to encourage participation, we made the subjects know that there would be a show-up fee to compensate for their time in the study.

Experimental Design/ Treatment Monetary incentive/goals treatment: Subjects in all treatment arms were required to choose 1 out 8 goals to achieve within a week. Subjects in treatment group 3 were assigned a cash prize of 4,500 Nigerian Naira (US $14) whenever they achieved their selected business goal.

Data/ Survey The analysis makes use of the following data sources: a baseline survey, orientation survey, a follow-up survey, goals survey, goals follow-up survey after intervention and an endline survey.

Model and Hypothesis ID strategy: building a counterfactual by using a randomized control trial. Random assignment of subjects to treatment groups Comparing outcomes of women across these groups In this way we can produce unbiased estimates of the treatment effect of each treatment on female entrepreneurship.

Results Education is coded as having completed 1=none, 2=primary, 3=Secondary school,4=HND/OND, 5=University, 6=Vocational training, 7= Technical. Age is coded as being in an age group between 1=18-25, 2=26-35, 3=36-45, 4=45-65. Marital status is coded as subjects being 1=single, 2=Married, 3=Civil union, 4=Widow, 5=Separated, 6=Divorced. Sufficient income is self assessment whether household has 1=insufficient, 2=sufficient, 3=more than sufficient income to cover basic needs. Self Esteem is mean (0-4) generated from survey self esteem questions. Risk is mean (1-10) generated from survey risk questions.

Results

Results

Results

Conclusion Overall we failed to find a statistically significant effect. Also, results suggest that perhaps incentives did reveal to have been a motivator in goal achievement rate. Challenges: Short time period, Larger sample size required. Policy implication: More research is needed to further this policy goal.