Training vouchers and microfinance toolsare often used by multilateral organizations,non-governmental organizations, and governments to increaseemployment and business oppor¬tunities in low- andmiddle-income countries. An alternative is putting cashdirectly in the hands of the poor themselves, leaving themto decide how best to use the money for income-generatingactivities. One of the assumptions underlying these programsis that poor people can generate high returns to capi¬talbut often have trouble saving money and accessing credit.Giving people cash enables them to bypass these obstacles tostarting or improving a business. Recent studies have foundthat simply giving people cash can improve incomes, at leastin the first few years, and the cash is very rarelysquandered or misused. However, very little is known aboutthe effectiveness of start-up grants in the long run.