Hundreds of millions of microenterprises in emerging economies face increased competition from the entry and expansion of large firms that offer similar products. This paper examines the impacts of the opening of chain-run convenience stores on one of the world’s most ubiquitous microenterprises: owner-operated shops. To address endogeneity in time and location of chains’ opening, I pair two-way fixed effects with a novel instrument that shifts the profitability of chains but not of shops at the neighborhood level. Expanding the number of chain outlets from zero to the neighborhood average of 6.7 stores reduces the number of shops by 15%, a decline driven not by increased shop exits but by decreased shop entries. Shops retain their sales of fresh products and keep 96% of their customers, but customers visit shops less frequently and spend less on packaged goods. Surviving shops leverage competitive advantages stemming from being owner operated, such as lower agency costs, cultivating relationships with neighbors, and offering customers informal credit. The welfare gains of convenience chains replacing shops increase with household income; the poorest households experience a welfare loss.

中文翻译：

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在竞争中生存下来的邻里商店与便利连锁店

新兴经济体的数亿微型企业面临着来自提供类似产品的大公司的进入和扩张的日益激烈的竞争。本文探讨了连锁便利店的开业对世界上最普遍的微型企业之一：业主经营的商店的影响。为了解决连锁店开业时间和地点的内生性问题，我将双向固定效应与一种新颖的工具结合起来，该工具可以改变连锁店的盈利能力，但不会改变社区层面的商店的盈利能力。将连锁店数量从零扩大到附近平均 6.7 家商店，商店数量减少了 15%，造成这种下降的原因不是商店退出数量增加，而是商店进入数量减少。商店保留了生鲜产品的销售并留住了 96% 的顾客，但顾客光顾商店的次数减少了，在包装商品上的花费也减少了。幸存的商店利用业主经营带来的竞争优势，例如较低的代理成本、培养与邻居的关系以及为顾客提供非正式信贷。便利连锁店取代商店的福利收益随着家庭收入的增加而增加；最贫困家庭的福利遭受损失。