Building Business Networks to Strengthen the Economic and Social Integration of Urban Refugees

Study participants are randomly assigned to four treatment groups and two control groups. The treatment groups participate in a 10-week business group for a duration of 3 months. All groups, including the control groups, receive a business grant of around 435 USD. The grant is paid out for all groups except for the “pure control group” after week 7 (of 10) of the intervention. The smaller “pure control” receives the same business grant but the payment is delayed until after the endline.

For participants in the four treatment groups, we vary two key dimensions of the business networking groups: the interaction intensity (intensive vs. extensive) and the nationality composition (homogenous vs. mixed) of the group. We hold the gender constant within all groups (all group members are either male or female, no mixed groups). We also hold constant the content of the business networking groups as well as the frequency of meetings, although the composition and size of these groups varies. Each session is led by a trained facilitator. To facilitate participation, all participants receive a transportation stipend in the first week that funds travel within the city for all subsequent weeks. Individuals with children that require childcare receive a child care stipend.

While all groups are facilitated by a trained facilitator, the core idea is not to train skills or provide information but to act as a forum to get to know other people in a meaningful way, to solve problems together, to learn how important social capital and networks are, and to map and identify concrete opportunities to expand one’s networks. All business groups are structured into 10 substantive topics but all sessions involve group discussions, interactive exercises and information exchanges rather than a taught curriculum. For example, two weeks are dedicated to visiting the businesses of fellow participants in the training (in the intensive treatment arm) and to have a business fair showcasing their businesses (in the extensive treatment arm). The discussion and group exercises follow as closely as possible a similar structure across treatment arms to hold the learning itself constant and identify the effects of the network instead.

The following general topics will be covered:
Week 0: Introduction and logistics
Week 1: Value of networking
Week 2: Business set-up and growth
Week 3: Suppliers, creditors and capital
Week 4: Customers and marketing
Week 5: Field visit/ business fair
Week 6: Planning for the business grant and savings
Week 7: Crisis management and problem solving
Week 8: Field visit/ business fair
Week 9: Stress Management
Week 10: Next steps

2024-09-01

2024-11-30

1. Economic performance:
a. Business profits
b. Business ownership

2. Psychological well-being:
a. Life satisfaction
b. Self-efficacy

3. Social cohesion:
a. Trust in in-group and out-group nationalities
b. Outgroup interactions

4. Network expansion
a. Degree centrality
b. Network diversity

1. Economic performance:
c. Customer base and diversity
d. Value of productive assets
e. Hours spent in business
f. Non-entrepreneurial income

2. Psychological well-being:
c. Locus of control

3. Social cohesion:
c. Support for progressive refugee policies
d. Outgroup friends

4. Networks
b. Clustering coefficient
c. Number of local bridges

1. Economic performance:
c. Customer base and diversity
d. Value of productive assets
e. Hours spent in business
f. Non-entrepreneurial income

2. Psychological well-being:
c. Locus of control

3. Social cohesion:
c. Support for progressive refugee policies
d. Outgroup friends

4. Networks
b. Clustering coefficient
c. Number of local bridges
d. Network diversity

Study participants are randomly assigned to one of six groups:
(1) Treatment I: Cash grant + Intensive interaction, homogenous business group
(2) Treatment II: Cash grant + Intensive interaction, heterogeneous business group
(3) Treatment III: Cash grant + Extensive interaction, homogenous business group
(4) Treatment IV: Cash grant + Extensive interaction, heterogeneous business group
(5) Control I: Cash grant only
(6) Control II: "Pure" control group, with cash grants provided after 16 months (end of program)

Treatment I and II: 1360 participants in each city are grouped into intensive business groups of the same 8 members. Half of these groups consist of homogenous groups based on nationality and half of heterogeneous groups from mixed nationalities that include refugees and host community members. All small group settings are homogenous in terms of gender to facilitate engagement and attendance across groups with varying cultural norms and attitudes towards women and entrepreneurial activities. All members of a business group come from the same broad area in the city (6 areas in Nairobi, 5 divisions in Kampala). Overall, the implementing partner organizes 170 intensive business groups in each city.

Treatment III and IV: 1400 participants in each city are invited to attend extensive business groups. These groups consist of 60 changing participants that are split up into 3 subgroups of 20 participants randomly each week. Over the course of the 3 months implementation period, an individual participant will hence meet 59 other participants. In the homogenous treatment arm, these participants will always be from the same nationality and gender. Participants in the heterogenous arm are invited to business groups with different refugee nationalities and host community members of the same gender. The members of the business groups all come from the same area in the city. Overall, the implementing partner organizes around 24 rotating groups of 60 individuals in each city. Participants are encouraged by facilitators to exchange contact information and business cards.

Control groups: 620 individuals in each city are assigned to the delayed cash control group (1240 total). 620 individuals in each city are assigned to the cash only control group (1240 total).

Randomization of individuals into treatment arms and business groups proceeded in a multi-stage algorithmic process. Nationality-, gender-, and location-specific groups are selected at random. Respondents to fill these groups are selected at random conditional on them fulfilling the group criteria. Randomization is done on a computer using statistical software (R).

Individual

No

No clustered assignment. 8,000 individuals total (refugees and hosts); 4,000 in Nairobi, Kenya, and 4,000 in Kampala, Uganda.

8,000 individuals total (refugees and hosts); 4,000 in Nairobi, Kenya, and 4,000 in Kampala, Uganda.

Treatment I (cash grant + intensive homogenous): 1360 (680 in Kampala, 680 in Nairobi)
Treatment II (cash grant + intensive mixed): 1360 (680 in Kampala, 680 in Nairobi)
Treatment III (cash grant + extensive homogenous): 1400 (700 in Kampala, 700 in Nairobi)
Treatment IV (cash grant + extensive mixed): 1400 (700 in Kampala, 700 in Nairobi)
Control 1 (cash grant only): 1240 (620 in Kampala, 620 in Nairobi)
Control 2 (pure control): 1240 (620 in Kampala, 620 in Nairobi)

The study is powered to detect the impact of networking business groups relative to the control group at USD 3.21 per month and for the probability of business ownership (binary) at 0.02.

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