Making Institutions Visible: Public Legal Knowledge in Informal Economic Settings

Alexia Delfino, INSPIRE and LEAP Faculty Affiliate, and Irene Solmone, INSPIRE and LEAP Student Affiliate, have obtained a ReCIPE Research Grant for a full-scale RCT in Lusaka, Zambia, exploring the role of legal institutions in promoting business collaboration among entrepreneurs.

The goal of this project is to rigorously evaluate whether increasing awareness of the Small Claims Court (SCC) can improve business collaboration and outcomes among small-scale entrepreneurs in Lusaka with a particular focus on reducing gender gaps. The research team has identified that women entrepreneurs often avoid potentially profitable business collaborations due to fears of being unable to resolve disputes fairly. This aversion is heightened by a lack of awareness and trust in legal institutions. The project aims to address this gap by informing entrepreneurs about the SCC’s procedures accessibility and benefits through group-based sessions, video testimonials, a hotline and reimbursement for court visits. Using a randomized controlled trial the team will assess the impact of this intervention on entrepreneurs’ willingness to collaborate especially across gender lines and on broader business outcomes. Ultimately this initiative seeks to demonstrate the value of accessible legal institutions in promoting equitable economic growth and provide evidence-based recommendations for scaling awareness interventions potentially benefiting a wider range of small entrepreneurs across Lusaka.