G23 - Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional InvestorsReturn

The concept of microfinance has developed rapidly since its inception in 1976. Despite its development, the impact it has on entrepreneurship is a subject of debate. Scholarly articles have recently emerged outlining that successful entrepreneurship depends on individual and household characteristics, and on the status of the microfinance loan received. This paper investigates the impact of microfinance on entrepreneurship in Kyrgyzstan using the nationally representative household survey data for 2013. Due to the endogeneity issue, we applied the binary response model with instrumental variables. After the adjustment for endogeneity, the result indicates that access to microcredit has a significant positive impact on entrepreneurship and shows there is a significant gender difference between men and women when making the decision to become an entrepreneur. Thus, men are more likely to become an entrepreneur than women. Another interesting finding is that elderly, less educated, and married individuals are more likely to be entrepreneurs. Therefore, it can be assumed that entrepreneurship in Kyrgyzstan is mostly represented by unskilled workers, many of which are unpaid family workers and self-employed who manage small trade markets, shops, and own land in order to generate income that does not require a particular education or labour skills.

Investment in various assets is associated with returns and risks. Especially precious metals are considered profitable and safe. Our analysis for the United States in 2005 - Q2 2015 demonstrates that it is very questionable. In this period, which included the US financial crisis, precious metals were coupled with a greater price volatility and lower real income than was the case with stocks in the DJIA index. Even over a sufficiently long period, gold and silver were not a good store of value with positive real returns. Moreover, demand deposits were also more profitable than gold in the longer term after 1980. In the long run, contrary to the beliefs, precious metals may not to keep good value in the physical form or in the form of securities linked to the price development of these assets. Commemorative and historical coins with a numismatic value are the most appropriate investment in precious metals. However, this investment is also associated with some risk.