Credit Access and Determinants of Entrepreneurial Success
Last registered on March 19, 2020

Pre-Trial

Trial Information
General Information
Title
Credit Access and Determinants of Entrepreneurial Success
RCT ID
AEARCTR-0005567
Initial registration date
March 17, 2020
Last updated
March 19, 2020 12:05 PM EDT
Location(s)

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Primary Investigator
Affiliation
UC Berkeley
Other Primary Investigator(s)
PI Affiliation
Universidad de Navarra
PI Affiliation
UT Austin
PI Affiliation
UC Berkeley
Additional Trial Information
Status
On going
Start date
2020-01-01
End date
2021-12-31
Secondary IDs
Abstract
Low access to credit is one of the main concerns of public policy, especially in low and middle income countries. For that reason finding new ways to reduce the barriers of entry into credit markets without increasing the risk for lenders calls the attention of academics, policy makers and entrepreneurs.

This is also the case of Bolivia, a low income country in South America, where microcredit has been increased sharply in the last decades in order to reduce poverty and inequality . In that sense, our study aims to contribute to this analysis by measuring the relationship between financial and non-financial services in the case of a dynamic borrowing, working together with a financial institution in Bolivia, El Banco del Desarrollo Productivo (BDP).

The study’s main goals are:
To measure the impact of future incentives on repayment behavior.
To measure possible complementarities between access to credit and training.

Thus, we design an experimental study on a subset of BDP’s clients. In our study, actual clients we will randomly receive an offer of different opportunities to better credit conditional on good payment behavior. We will also have mixed access to better credit and training in order to measure the complementarities between both services, independently of the dynamic incentives.
External Link(s)
Registration Citation
Citation
Fuchs, William et al. 2020. "Credit Access and Determinants of Entrepreneurial Success." AEA RCT Registry. March 19. https://doi.org/10.1257/rct.5567-1.0.
Experimental Details
Interventions
Intervention(s)
In our study, actual clients we will randomly receive an offer of different opportunities to better credit conditional on good payment behavior. We will also have mixed access to better credit and training in order to measure the complementarities between both services, independently of the dynamic incentives.
Intervention Start Date
2020-01-01
Intervention End Date
2021-12-31
Primary Outcomes
Primary Outcomes (end points)
Default rates, credit take up rates, delays in repayment, performance indications, social-economic indicators from the surveys.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
Initially, individuals will be randomly assigned to one of five groups (branches), 1 control and 4 treatments. The branches will be:
Control: Clients without any promise for the future (business as usual).
T1: Clients with a promise of being assessed to get better credit conditional on good payment behavior.
T2: Clients with a promise of being assessed to get better credit conditional on good payment behavior. Additionally, they will receive training.
T3: Clients with training but without any promise of better credit.
T4: Clients with training but without any promise of better credit. However, conditional on good behavior they will be assessed to get better credit.
Experimental Design Details
Not available
Randomization Method
Done in office by a computer,
Randomization Unit
Credit officer
Was the treatment clustered?
Yes
Experiment Characteristics
Sample size: planned number of clusters
212 credit officers
Sample size: planned number of observations
1754 individuals
Sample size (or number of clusters) by treatment arms
42 clusters per arm
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
Office for Protection of Human Subjects, UC Berkeley
IRB Approval Date
2017-05-11
IRB Approval Number
2017-03-9696