Can diversification reduce small business vulnerability?
Last registered on January 29, 2020

Pre-Trial

Trial Information
General Information
Title
Can diversification reduce small business vulnerability?
RCT ID
AEARCTR-0005181
Initial registration date
December 15, 2019
Last updated
January 29, 2020 8:46 AM EST
Location(s)
Region
Primary Investigator
Affiliation
Insper Institute of Education and Research
Other Primary Investigator(s)
Additional Trial Information
Status
On going
Start date
2019-10-28
End date
2020-03-02
Secondary IDs
Abstract
This study investigates whether and how diversification in small businesses reduces the vulnerabilities to which poor entrepreneurs are exposed. Our intervention indirectly (and randomly) changes the level of diversification of a group of small businesses in Brazil.
External Link(s)
Registration Citation
Citation
Nardi, Leandro. 2020. "Can diversification reduce small business vulnerability?." AEA RCT Registry. January 29. https://doi.org/10.1257/rct.5181-1.1.
Experimental Details
Interventions
Intervention(s)
Intervention Start Date
2019-10-28
Intervention End Date
2020-02-15
Primary Outcomes
Primary Outcomes (end points)
The outcome of interest in the first stage is the ratio between revenues coming from the diversified source and total business revenues. In the second stage, I will look at business profits, productivity and revenues' volatility.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
All businesses in our sample are, to some extent, diversified. Businesses randomly assigned to treatment receive close support (in the form of marketing advice and consulting) to increase the proportion of diversified revenues over total business revenues.
Experimental Design Details
Randomization Method
Randomization done in office by a computer.
Randomization Unit
individual business
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
315 businesses
Sample size: planned number of observations
306 businesses
Sample size (or number of clusters) by treatment arms
151 businesses treatment and 155 businesses control
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
IRB Approval Date
IRB Approval Number
Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
No
Is data collection complete?
Data Publication
Data Publication
Is public data available?
No
Program Files
Program Files
Reports and Papers
Preliminary Reports
Relevant Papers