Business Transformation and Innovation Management
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This paper conducts a thorough data analysis using cross-sectional data from a study carried out in Mexico including over 16,500 observations. In the study, clusters were selected in areas Compartamos Banco, a Microfinance institution (MFI), has not lent in before. The clusters were randomly assigned to either the treatment or the control group. The analysis suggests that Microfinance has a significant positive effect on school and food expenditure but no apparent effect on entrepreneurship. Using regression analysis, a significant positive effect on women’s empowerment and its positive effect on total consumption is found.