Comment from Discussant

Tsega G. Megzgebo
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Joined: Tue Jun 12, 2018 7:20 am

Comment from Discussant

Post by Tsega G. Megzgebo » Tue Jun 12, 2018 11:33 am

I would like to say that I enjoyed reading your paper. Its well written, congratulations on that. But I have some comments.
The first in the topic on risk analysis:
1. Your findings indicate that labor and capital inputs are not use optimally.
Does this apply to the micro enterprises, usually they have low capacity of input intake and have limited access to the inputs?
2. your findings show female entrepreneurs have slightly high risk aversion behavior compared to the male counterparts
My concern is that female (women) entrepreneurs engaged in the low productive sub-sectors (trade and services in your case out of the 30% about 44% trade and 19% service), i.e. about two third of them engaged in the low productive activities. This suggests self-selection of female/women to the micro enterprises which might bias if not corrected.
3. In your risk equation, you incorporated current capital and ability to produce financial report as predictors. These variables seem to me endogenous.

Second topic on the effect
you applied the risk estimated from the first paper. But if you could check correcting the endogenous variables, hope this might not have much effect on the current results.

The other general comments is for policy consumption. Previously, the micro and small enterprises were under the same package of support. Very recently, in 2017, the government split the micro from small enterprises and prepare a separate package of program support. Doing the analysis in this aspect might be an added value to your work.


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