Data Pooling App Training: Preparatory and Pilot Work to Design a Mobile App Intervention in Zambia

BEMAC Research Solutions Ltd wrapping up a high-level training session of research assistants in the Data Pooling App under the Zambia Storefront Management and Data Analytics Pilot. This is a pilot project to study the feasibility and inform the design of a future project studying whether a mobile phone storefront management app can generate business analytics that make firms productive. This aims to offset the lack of sales data that often limits business growth, empowering small-scale retailers to boost profitability and expand with real-time data.

The rise of the information economy has highlighted how data may be an input into production. Since firms also accumulate data through production, large firms may be able to accumulate data more quickly, giving them an advantage. The advantage is especially stark in retail, where a key dimension of productivity is the ability to forecast demand for individual products. However, accumulating data through scale is challenging in developing countries because retail is fragmented across thousands of small single-establishment shops. Thus this study aims to answer two research questions: first, does a lack of information about potential demand constrain the growth of small shops in developing countries? Second, can a scalable technology that pools data generated by individual shops overcome the informational barrier to growth? 

This research is highly policy relevant because improving the productivity of micro, small and medium enterprises (MSMEs), many of which are in the retail sector, has been a top priority across the developing world. This study will identify whether imperfect information about product-level sales is a key constraint on managerial ability and firm growth. Assuming imperfect information is a constraint, the study will design a scalable mobile-based technology to help firms alleviate the constraint collectively. In particular, government agencies could adopt the maintenance and promotion of the app.