A lack of public sector employment opportunities in Benin is pushing youth into self-employment. About 35% of youth are self-employed in Small and Medium Enterprises (SMEs) and 26% are in non-paid family work, whereas only around 19% are in wage employment1. However, youth entrepreneurs face important limitations to the growth and sustainability of their businesses. Lack of credit to start or grow a business is one of the main obstacles for Benin’s young entrepreneurs, over 60% of whom rely on personal funds or money from friends and family1, 2.

The Government of Benin implemented various measures to promote entrepreneurship. These measures include the Microcredit Program for the Poorest (MCPP) and the National Fund for the Promotion of Youth Entrepreneurship and Employment (FNPEEJ), both established in 2007. However, financial inclusion remains low across the country and formal finance options are not accessible to everyone. Indeed, in many developing countries like Benin, the complexity of formal credit sources limits access by start-ups and small firms. In particular, the need to present collateral may prevent many from seeking and accessing formal credit. Meanwhile, credit from informal and family sources tends to be more flexible in terms of access and repayments. However, little is known about the