Promoting Entrepreneurship among Forced Migrants: A Randomized Control Trial in Peru (2025)

This document presents a comprehensive analysis of an intervention that provided seed capital to recently displaced Venezuelan migrants in Peru seeking to start or expand their enterprises. Using a randomized controlled trial (RCT), we compare participants who received the seed capital to a control group who did not to measure its effects on business performance, household well-being, and economic resilience.

Data were collected at one, six, and eighteen months after the intervention, allowing us to evaluate both short-term impacts and the persistence of effects over time. Machine Learning techniques are employed to uncover differences in the effectiveness of the seed capital across different types of recipients. All participants received business training before the intervention. The evaluation prioritized the inclusion of vulnerable households (female-headed, with young children, or with members with disabilities).

The intervention rapidly improved business performance and shifted participants’ time into their own businesses. This led to increased household income and spending, improved subjective well-being, and strengthened financial health through higher savings and assets. Effects attenuate with time as control participants improve their economic standing.