Teaching crowdfunding: evidence from a field experiment

Last registered on June 15, 2023
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Pre-Trial

Trial Information

General Information

Title
Teaching crowdfunding: evidence from a field experiment
RCT ID
AEARCTR-0011518
Initial registration date
June 02, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
June 15, 2023, 10:56 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Tanzania, United Republic of
Region

Primary Investigator

Name
Diego Zunino
Affiliation
SKEMA Business School
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Orsola Garofalo
PI Affiliation
Copenhagen Business School
Contact Investigator
PI Name
Lars Bo Jeppesen
PI Affiliation
Copenhagen Business School
Contact Investigator
PI Name
Nsubili Isaga
PI Affiliation
Mzumbe University
PI Name
Daudi Ndaki
PI Affiliation
Mzumbe University
PI Name
Hadar Gafni
PI Affiliation
King's College

Additional Trial Information

Status
In development
Start date
2023-06-15
End date
2023-09-01
Keywords
Finance & Microfinance, Firms & Productivity, Welfare
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Academic conversation about prosocial lending via crowdfunding platforms assumes that lenders and borrowers interact directly. Yet, the major platform for crowdfunding prosocial loans relies on partner institutions that manage the process on behalf of the borrowers. In this study, we test whether borrowers could be trained in more autonomous management of their campaign. Using a randomized control trial, we measure the marginal impact of adding crowdfunding training to group of waitlisted borrowers at a government-sponsored organization for small and medium enterprises in Tanzania. Treatment groups received a baseline training about basic managerial and financial accounting, as well as a crowdfunding training session during a workshop day to prepare the campaign. Control groups only received the baseline training.
External Link(s)

Registration Citation

Citation
Gafni, Hadar et al. 2023. "Teaching crowdfunding: evidence from a field experiment ." AEA RCT Registry. June 15. https://doi.org/10.1257/rct.11518-1.0
Sponsors & Partners

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Experimental Details

Interventions

Intervention(s)
Business owners receive additional instructions about crowdfunding derived from prior literature.
Intervention Start Date
2023-06-15
Intervention End Date
2023-09-01

Primary Outcomes

Primary Outcomes (end points)
Campaign success
Time to funding
Amount invested per funder
Number of funders
Primary Outcomes (explanation)
These are primary outcomes common in crowdfunding research

Secondary Outcomes

Secondary Outcomes (end points)
Accepts to post project (yes/no)
Repayment (yes/no)
Repayment time (number of days)
Late payment (yes/no)
Delinquency (yes/no)
Type of funders (pure lenders/former borrowers)
Amount invested per type of funder
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The experimental design consists in the administration of the intervention to a randomized subsample of a group of business owners in a waitinglist for microfinance from the partner institution. Both control and treatment group receive baseline training during a workshop. At the end of the workshop business owners upload their loan application on a partner crowdfunding platform.
Experimental Design Details
Business owners in a waitiing list for microfinance from our partner institution receive an invitation to a workshop. The workshop takes a full day in the premises of the partner office. Participants are randomly assigned to two groups. Participants in both the control and the treatment group receive a baseline training on financial responsibility, accounting, and information about the platform where they are invited to post their project. Participants in the treatment group received an additional training about how to craft a successful project description. At the end of the workshop, participants are invited to post their project on a crowdfunding platform.
Randomization Method
The partner institution performs a randomization based on a random number generator.
Randomization Unit
Business owner
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
6 sites at regional offices of the partner institution
Sample size: planned number of observations
300
Sample size (or number of clusters) by treatment arms
150 business owners in the control group, 150 business owners in the treatment group
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Copenhagen Business School
IRB Approval Date
2021-04-13
IRB Approval Number
N/A
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials