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Abstract
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Before
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.
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After
This study investigates whether and how diversification in small businesses reduces the vulnerabilities to which poor entrepreneurs are exposed. We indirectly (and randomly) change the level of diversification of a group of small businesses in Brazil by increasing entrepreneurs' ability to sell through a platform. Treatment thus consists of online training sessions aimed at increasing entrepreneurs' platform-related sales and marketing capabilities. Main analyses focus on how treatment impacts platform sales and core-business sales (to grasp potential diversification effects). Other analyses consider how treatment impacts the diffusion of platform sellers within geographic regions.
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Trial End Date
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Before
March 02, 2020
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After
March 01, 2021
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Last Published
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Before
January 29, 2020 08:46 AM
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After
July 05, 2020 09:33 AM
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Intervention (Public)
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Before
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After
All businesses in the sample are, to some extent, diversified since they sell both core business products/services and platform services, such as bill payment, phone recharges. Businesses randomly assigned to treatment receive platform-related sales and marketing training to increase the proportion of platform sales (i.e., revenues from the diversified source) vis-a-vis total business revenues.
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Intervention End Date
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Before
February 15, 2020
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After
February 29, 2020
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Primary Outcomes (End Points)
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Before
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.
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After
The primary outcomes of interest are platform sales (diversified source), total business sales (including non-diversified source) and the ratio between these variables. Business average profits are also examined, as well as the number of platform sellers within ZIP codes.
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Experimental Design (Public)
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Before
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.
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After
About half of businesses were assigned to treatment. Treatment was stratified in two levels: industry/sector and preexisting platform sales experience (i.e., a group with higher number of platform transactions in the nine months preceding the beginning of the trial versus a group with lower number of platform transactions in the same period). To avoid contamination, most of the businesses in the study are located in separated geographic areas. This design also allows for a ZIP-code-level analysis of treatment effects on platform diffusion.
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Randomization Unit
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Before
individual business
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After
Individual business.
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