Table A7: Impacts by Baseline Profits

|||**Bo**|**rrowing**||**Survival**|**Performance (M**|**ain business)**|**I**|**nputs (Main business)**||
|---|---|---|---|---|---|---|---|---|---|---|
||(1)<br>Borrowed|(2)<br>Borrowed from formal source|(3)<br>Borrowed from informal source|(4)<br>Total amount borrowed<br>|(5)<br><br>Business was operatin|(6)<br>g<br>Last year’s proft<br>|(7)<br>Last year’s proft<br><br>|(8)<br>Value of owned equipment<br>|(9)<br>Value of inventory stock<br>|(10)<br><br>Value of raw materials<br>|
||in the past 3 years<br>(Yes 1; No 0)|in the past 3 years<br>(Yes 1; No 0)|in the past 3 years<br>(Yes 1; No 0)|(Conditional)<br>(IHS)|at endline<br>(Yes 1; No 0)|(Unconditional)<br>(IHS)|(Conditional)<br>(IHS)|(Unconditional)<br>(IHS)|(Unconditional)<br>(IHS)|(Unconditional)<br>(IHS)|
|Treatment (0/1)|0.383***|0.562***|-0.255**|1.215***|0.170|1.508|-0.01814|2.604**|0.967|1.788|
||(0.10)|(0.098)|(0.100)|(0.37)|(0.12)|(1.24)|(0.40)|(1.22)|(1.42)|(1.17)|
|Baseline profts are above the median (0/1)|0.185|0.179|0.0699|1.613***|0.223*|0.664|-1.427|3.370***|1.112|4.006***|
||(0.12)|(0.12)|(0.12)|(0.46)|(0.12)|(1.69)|(1.43)|(1.28)|(1.44)|(1.19)|
|Interaction term between baseline profts (0/1) and treatment|-0.202<br>|-0.191<br>|0.145<br>|-0.926*<br>|-0.0306<br>|0.201<br>|1.210<br>|-2.450<br>|-0.388<br>|-5.622***<br>|
||(0.15)|(0.15)|(0.16)|(0.50)|(0.16)|(2.17)|(1.83)|(1.72)|(2.11)|(1.70)|
|**ANCOVA**|✓|✓|✓|✓|✗|✓|✓|✗|✗|✗|
|Observations|124|124|124|95|124|124|105|124|124|124|
|Control mean<br>|0.515|0.333|0.303|11.57|0.545|8.715|11.98|7.051|6.938|1.527|
|_R_<sup>2</sup>|0.16|0.30|0.081|0.31|0.12|0.052|0.033|0.13|0.030|0.12|
|Randomization inference p-value|0.22|0.23|0.39|0.058|0.84|0.92|0.44|0.16|0.84|0.01|
|Sharpened q-value|0.30|0.30|0.42|0.30|1|1|1|0.20|0.39|0.0140|
|Treatment + Interaction p-value|0.08|0.01|0.40|0.45|0.16|0.35|0.52|0.90|0.71|0.01|

Notes: Baseline monthly profits ranged from 200 to 120000 ETB in the IE sample and the median value used for the cut-off is 18750 ETB. Outcome 1 takes the value of 1 if respondent borrowed formally or informally and 0 otherwise. Outcome 2 takes the value of 1 if the respondent borrowed any money for their business from Banks, Micro-Finance Institutions (MFI), or Credit Unions. Outcome 3 takes the value of 1 if the respondent borrowed any money for their business from their spouse, friends and relatives, and informal savings groups. Outcome 4 includes both formal and informal borrowing amounts reported by the respondent, conditional on borrowing. Outcome 5 takes the value of 1 if business was operating at the time of the endline survey (September 2021). Outcomes 6-7 are self-reported total profits of the main business from the year 2013 in the Ethiopian calendar (which is 2020 in the Gregorian calendar). Outcome 8 is the self-reported value of owned equipment, where the respondent was asked to estimate the replacement value of all owned equipment and machinery for the main business. Outcome 9 is the self-reported value of inventory stock, where the respondent was asked to estimate the value of final goods for sale that they currently have in stock for their main business. Outcome 10 is the self-reported value of raw materials, where the respondent was asked to estimate the value of product components and raw materials for their main business. Conditional amounts represent only those whose businesses were open, whereas unconditional amounts include those not operating any business with a value of 0. Only Inverse Hyperbolic Sine (IHS) transformed versions of borrowingand controlamounts,at baseline,profitsas welland asbusinessif the respondentinputs are presented.was above Psychometricor below the medianscores inpsychometricthe IE samplescorerangedcut-off.fromObservations370 to 452, andrepresentthe mediannumberscoreof individuals.used a cut-offRobustis 383standard(note thaterrors370 arewasintheparentheses.qualifying score* _p <_ 0to _._ 05,receive** _p <_ an 0 _._ uncollateralized01, *** _p <_ 0 _._ 001loan). Includes a control for number of children in the households that was imbalanced between treatment