E-bookkeeping: Measuring Small Firms’ Behavior in Nigeria

Study Context

This project studies the impact of providing small business owners in low-income communities an app-based technology solution to record systematic, product-level data. The study aims to determine whether having access to detailed information on business metrics over time can help business owners make better decisions and plan for the future. It will also provide valuable micro-level data to researchers, microfinance institutions, and government organizations to understand the behavior of small firms in low-income countries and develop  targeted micro-level interventions.

Study Design

Two months prior to data collection, researchers will randomly assign 2,000 firms in Lagos to either a control group or a treatment group in which they will receive a mobile app to ascertain whether the app improves business performance. In the second level of randomization, researchers will further divide the treatment group into one which will receive micro-consulting (i.e. record-keeping training and tailoring red, action-oriented reports) and while the other will not receive any additional micro-consulting. This level of randomization will answer whether more information and analytics provided through the app improves adoption for the group with micro-consulting compared to the group without micro-consulting.

Data will be collected with biweekly field visits and through WhatsApp for information and images on stock, sales, and profit. The study will also collect demographic information and information on business management capacity, household expenditure, record-keeping behavior, and digital technology usage through baseline and endline surveys. Researchers will conduct qualitative research to better understand the constraints to record-keeping and the mechanism at which the intervention may work.

Results and Policy Lessons

Results forthcoming.