Closing the Gender Profit Gap

We examine the complementarity between access to mobile savings accounts and improved financial management skills on the performance of female-led micro-enterprises in
Mozambique. This combined support is associated with a large increase in both short and
long-term firm profits and in financial security, when compared to the independent effect
of each of these interventions. This support allowed female-headed micro-enterprises to
close the gender gap in performance and financial literacy relative to their male counterparts. The main drivers of improved business performance are increased financial management practices (bookkeeping), an increase in accessible savings and reduced transfers
to friends and relatives.