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Can diversification reduce small business vulnerability?

Last registered on December 16, 2019
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Pre-Trial

Trial Information

General Information

Title
Can diversification reduce small business vulnerability?
RCT ID
AEARCTR-0005181
Initial registration date
December 15, 2019

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
December 16, 2019, 10:53 AM EST

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

Locations

Country
Brazil
Region

Primary Investigator

Name
Leandro Nardi
Affiliation
Insper Institute of Education and Research
Contact Primary Investigator

Other Primary Investigator(s)

Additional Trial Information

Status
On going
Start date
2019-10-28
End date
2020-03-02
Keywords
Firms & Productivity
Additional Keywords
JEL code(s)
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. 2019. "Can diversification reduce small business vulnerability?." AEA RCT Registry. December 16. https://doi.org/10.1257/rct.5181-1.0
Sponsors & Partners
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
315 businesses
Sample size (or number of clusters) by treatment arms
158 businesses treatment and 157 businesses control
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
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