The%20Impact%20of%20Internet%20Banking%20on%20the%20Performance%20of%20Micro%20and%20Small%20Enterprises%20in%20Costa%20Rica%3A%20A%20Randomized%20Controlled%20Experiment

Working Papers

The Impact of Internet Banking on the Performance of Micro and Small Enterprises in Costa Rica: A Randomized Controlled Experiment


CODE: IDB-WP-242
AUTHOR(s): Monge-Gonzalez, Ricardo
PUBLISHED: August 2011
LANGUAGE: English
RELATED TOPICS: Microeconomics
DOWNLOAD FILE IN: English

Abstract:

This paper uses a randomized controlled experiment in Costa Rica to determine whether internet banking (IB) use by Banco Nacional de Desarrollo`s micro and small enterprise (MSE) clients impacts their performance, measured in terms of productivity, increase in sales, and cost reduction. Results from the intervention group surveys indicate that MSEs` use Internet sparsely in their daily operations because of limited access to computers and the relatively low penetration of Internet services in employees` activities. In addition, firms know little about the uses of the Internet as a business development tool. These results contrast with the benefits reported by a small group of firms. Those benefits include reduced costs, higher sales, and better contact with customers.

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