Microcredit and Women’s Financial Empowerment: Insights from Brazilian Crediamigo Microcredit Program

Purpose: The purpose of this study is to estimate the impact of Crediamigo Microcredit Program in Brazil on the financial situation of its recipients and investigate potential gender differences. Study design: We use secondary data from the socioeconomic registry of Crediamigo, considering the active clients of the Program until 2021. Our identification strategy consists of using the Difference-in-Differences method. Findings: The findings indicate that sustained participation in the program results in an average increase in operating profit, non-operating revenue, and payment capacity. Despite less favorable initial conditions and a lower average loan value, women experience significantly greater impacts. Contributions: The main contribution focuses on using unique characteristics of Crediamigo to understand gender differences in financial performance. Implications: By showcasing the benefits for female entrepreneurs, the findings offer valuable insights for more targeted financial initiatives and policies that bridge gender gaps and better serve female entrepreneurs.