Female-owned businesses continue to be smaller and less profitable than male-owned firms. We conducted an RCT in Ghana on a sample of 1,771 growth-oriented female entrepreneurs to investigate the effect of online networking groups on firm performance. We find that access to online networking opportunities leads to greater innovation, better business practices and higher profits by 26%. The increase in profits is concentrated in the upper tail of the distribution. However, three-year follow-up data reveal limited impacts on long-term firm outcomes. Our findings reveal the potential and limitations of low-cost, light-touch interventions in fostering long-term business growth for female entrepreneurs.
G²LM|LIC Policy Brief No. 70