Business owners in low-income communities have been reluctant to keep thorough records of their products due to a perceived lack of benefits, significant mental and time costs, and the desire not to leave a trail for tax authorities. Yet systematic product-level record keeping is the standard for firms in developed economies. There is some evidence that account diaries among small firms could have an impact, however, most of what we know about firm behaviour has come from large firms and the behaviour of small-scale firms remain a black box. This project seeks to answer two broad questions. Firstly, can systematic product-level data recording by small-business owners through an app enable them to improve their business practices and outcomes, in addition to improving the accuracy of firm data available to researchers and policymakers in low-income countries? And secondly, can providing other useful business advice aid in the adoption record-keeping?
Through an RCT, Oyebanjo will test two related treatments. The first intervention group will receive the app, app training, and take-up incentives - the record-keeping treatment. The second arm will receive a micro-consulting treatment, which provides them not only with the basic app, app training and take-up incentives but also in-app 'digests' and consulting tips. A consulting team will focus on using information derived from granular firm data from the app to provide business tips that improve decision-making and address short-term needs of the business. Between these two interventions, it will be possible to measure the impact on firm outcomes of keeping electronic records while also assessing whether business advice can complement this work.
As mobile phone ownership expands, technologies that can provide small businesses with easier methods of keeping track of their activities will be sought after. This project will provide evidence on whether having access to detailed information on business metrics across time can help business owners improve their decision-making in the present and plan for the future. Furthermore, this project has potential to provide researchers, microfinance institutions and micro-level government interventions with not just an evaluation of the impacts of better record-keeping but also micro-level data that can be used to help understand the behaviour of small firms in developing countries.
