NCIFCares Research: Evidence Based Impact

NCIF hopes and expects that this evidence-based coaching program will have a positive impact on small businesses in the US, and can then be replicated and scaled to create social and environmental impact nationally and to further solidify the role of anchor financial institutions like the ones in the NCIF Network Banks and institutions.

The study will focus on identifying the impact of the coaching program on small businesses by evaluating changes in financial and impact performance over a period of 12 months from the receipt of grant (for the grant-only recipients) and six months after completion of the coaching (for the coaching cohort). The outcomes we will track include: revenue, number of employees, assets, business focus, and whether they are still operating at the end of the coaching and assessment periods.

The NCIFCares Coaching Program is inspired by the research of Professor Pradeep Chintagunta,the Joseph T. and Bernice S. Lewis Distinguished Service Professor of Marketing at the University Chicago Booth School of Business. Professor Chintagunta partnered with Grow Movement in conducting path breaking research, demonstrating the effectiveness of this kind of coaching among small businesses in Uganda. NCIF is partnering with Professor Pradeep Chintagunta and the research team at The Rustandy Center for Social Sector Innovation at the University of Chicago Booth School of Business to conduct this study in the US context.

The research hypothesis is that a combination of microgrants, coaching, and presence of a partner anchor institution will increase the chances of success of the grant recipient receiving coaching compared with the grant recipient that does not participate in coaching.

The questions that we will seek to answer are:

  • Does personalized coaching combined with a grant make a significant difference in outcomes in the performance of a small business compared to only a grant?

  • What components of a partnership/relationship with an anchor financial institution do small businesses value and potentially influence their outcomes?

NCIF and the University of Chicago Booth School of Business will evaluate the business performance and outcomes of the coaching cohort and control group in the context of the study’s hypothesis and publish a report on the efficacy of the coaching.