Do lack of a support network and role models contribute to the observed gender gap in microen- terprises? And are these cultural constraints more strongly felt by women facing more restrictive social norms on their mobility?
Working with 636 customers of India's largest women's bank, we offered a random sample two days of business counseling and assistance in identifying a medium- term financial goal. A random subsample were invited with a friend. The intervention had a significant immediate impact on participants' business activity, but only if they were trained in the presence of a friend. These clients were more likely to take out new business loans; then, four months later, they reported increased business activity and higher household income, and were less likely to report their occupation as housewife. The positive impacts of training with a friend are stronger among women from religious or caste groups with social norms that restrict female mobility.