Study Objective:
The study takes a behavioural approach to understanding the choice made between entrepreneurship and wage employment, and evaluating the attributes influencing this choice. Through extensive field research and randomized control trials, we aim to understand how individuals evaluate the economic and social risks associated with wage employment versus entrepreneurship and the inherent traits that distinguish those suited to be entrepreneurs from those suited to be employees.

Study Objective:
One of the factors arresting growth in the second hand market for commercial vehicles is credit constrained intermediaries. It is estimated that only 10% of brokers have access to bank financing, while the majority rely on non-institutional financing that often carries above-market interest rates. We are currently undertaking a pilot program to test the impact of providing short-term bank loans to brokers participating in used vehicle auctions. In particular, we are interested to see if increased access to financing leads to higher prices as more brokers are induced to participate and those that do bid more aggressively. We are also testing whether higher prices have secondary effects on the new vehicle market. Most vehicles on the second-hand market are repossessed assets, and higher recovery rates on non-performing vehicle loans may lead banks to increase the volume of new vehicle lending. Findings from this study can help understand how access to credit can help in other second hand markets such as commercial machinery for SMEs.

Study Objective:
The objective of the study is to understand how length of relationship affects transactions when buyer / seller goes through stress or shocks? By audit methodology we plan to simulate real time business transactions between the sellers and our mystery shoppers and thereby build relationship over a number of repeated transactions .Thus from the observations of these transactions, we can understand the effect of various kind of stress at various length of relationship between the seller and buyer affect transaction outcome.

Study Objective:
The Chit fund model is an easy and innovative method of access to finance; it caters to the needs of different sections of the society, mainly in the lower income-generating households and small businesses. Our prior research shows that there are large differences across regions as to whether these funds include the very poor or whether they mainly reach the lower middle class. These differences seem to be driven by differences in regulation and best practices across states and chit fund companies. We are currently undertaking pilot studies that aim to test some of the most important constraints to the efficiency and reach of chit funds to find innovative ways of increasing the financial inclusion of the underserved low-income population and to provide best practice ideas to the chit fund industry as a whole.

Study Objective:
Current account behavior can increase the screening capacity of lenders by providing useful information on the financial behavior of the business owner and information to assess the potential profitability of the business. This study draws on the data from an overdraft facility that was offered to pre-approved eligible SME current account customers, and aims at understanding how the transaction history of SMEs current account (e.g. the level and frequency of account utilization, the absence of bounced checks or fund overdraws) can be optimally utilized to predict their behavior as borrowers.

Study Objective:
Initiated to understand various business dimensions of service oriented enterprises, this study tests the “hold-up” from the seller’s side under normal and urgent situations. An audit study is a research method, an examining or investigative study, to understand the issues in-depth with the help of “auditors” or “mystery shoppers”. Auditors are trained individuals (representing sample of the industry under study) with a proper script of behavior, questions to be asked, and measures to record the responses to the questions relevant to the study. This is a continuation of a Trust Audit Study which analyzed the importance of Ethnic Networks for Business Transactions of the Small Enterprises.

Study Objective:
Our study seeks to determine the optimal communication strategy for small business loan customers and understand what methods are most effective in reminding borrowers of payment due dates. A randomized evaluation method was used to verify the effectiveness of various strategies. We looked at three commonly used methods of reminding borrowers of due dates – SMS messages, short reminder phone calls and regularly scheduled “high touch” phone. The effect of the different customer interaction strategies on customer loyalty was also measured.