Smartphone apps have the potential to be information overloading and distracting time wasters. However, research by Stephen J. Anderson of Texas A&M, Pradeep K. Chintagunta of Chicago Booth, Rupali Kaul of INSEAD, and Naufel J. Vilcassim of London School of Economics reveals that marketing analytics apps might boost small business sales and profits as well as entrepreneurs’ mental performance.

The researchers’ conclusions may persuade leaders, managers, and business owners to employ these platforms and apps since the benefits in increased earnings greatly exceed the expenses. The results also “have implications for investors and policymakers who seek to support small businesses and advance financial inclusion, particularly in developing economies,” the authors note.

The study was carried out in Rwanda, emphasizing its applicability to developing economies brimming with entrepreneurship. They claim that the results have great potential for these markets and that these business owners have a special ability to use data and analytics technologies to drive revolutionary growth.

In order to manage and analyze business data, Anderson, Chintagunta, Kaul, and Vilcassim created the smartphone software Market Manager. They also gave Android phones to 300 entrepreneurs and made sure they had access to a dependable, fast internet connection.

Numerous individuals experienced using a smartphone for the first time. On the other hand, as cell phones have become more widely used worldwide, impact investors and legislators have focused on them as a vital instrument for raising economic standards. According to the researchers, “despite this enthusiasm, there is little empirical evidence on the causal effects of such technology for stimulating changes at an individual entrepreneur level or at an overall business level.”

The entrepreneurs who had phones were divided into two groups: fifty people in the “placebo” group received no assistance and no app, and the other 250 people in the treatment group received the app along with monthly visits from analysts who gave them training on data entry and analytics interpretation. 250 corporate executives in an additional control group were not given phones.