Entry Regulation and Formalization of Microenterprises in Developing Countries

The majority of microenterprises in most developing countries remain informal despite more than a decade of reforms aimed at making it easier and cheaper for them to formalize. This paper summarizes the evidence on the effects of entry reforms and...

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Main Authors:	Bruhn, Miriam, McKenzie, David
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCOUNT ACCOUNTING ACCOUNTING SERVICES BUSINESS ENTRY BUSINESS FACILITATION BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESS REGULATIONS BUSINESS TAXES COMMERCE COMPANY CORPORATION CUSTOMER BASE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT EMPLOYMENT ENABLING ENVIRONMENT ENTREPRENEURS ENTREPRENEURSHIP FIRMS GOVERNMENT CONTRACTS GOVERNMENT OFFICES GOVERNMENT POLICY GOVERNMENT REVENUES IMPACT EVALUATION INSPECTION INSPECTIONS LICENSE LICENSE FEE LICENSES LICENSING LOAN MARKET ENTRY MARKETING MICROENTERPRISES ONE-STOP SHOP OPEN ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY REGISTRY REGULATORY BURDENS REGULATORY REFORM RESULT RESULTS SALES SCALE ENTERPRISES SHOP SMALL BUSINESSES SMALL FIRMS SMALL SCALE ENTERPRISES SME SUPPLIERS TAXATION TRANSACTION UNFAIR COMPETITION USES WAN WEB informality entry regulation self-employment regulatory enforcement
Online Access:	http://documents.worldbank.org/curated/en/2013/06/17926606/entry-regulation-formalization-microenterprises-developing-countries http://hdl.handle.net/10986/15866

id	okr-10986-15866
recordtype	oai_dc
spelling	okr-10986-158662021-04-23T14:03:23Z Entry Regulation and Formalization of Microenterprises in Developing Countries Bruhn, Miriam McKenzie, David ACCOUNT ACCOUNTING ACCOUNTING SERVICES BUSINESS ENTRY BUSINESS FACILITATION BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESS REGULATIONS BUSINESS TAXES COMMERCE COMPANY CORPORATION CUSTOMER BASE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT EMPLOYMENT ENABLING ENVIRONMENT ENTREPRENEURS ENTREPRENEURSHIP FIRMS GOVERNMENT CONTRACTS GOVERNMENT OFFICES GOVERNMENT POLICY GOVERNMENT REVENUES IMPACT EVALUATION INSPECTION INSPECTIONS LICENSE LICENSE FEE LICENSES LICENSING LOAN MARKET ENTRY MARKETING MICROENTERPRISES ONE-STOP SHOP OPEN ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY REGISTRY REGULATORY BURDENS REGULATORY REFORM RESULT RESULTS SALES SCALE ENTERPRISES SHOP SMALL BUSINESSES SMALL FIRMS SMALL SCALE ENTERPRISES SME SUPPLIERS TAXATION TRANSACTION UNFAIR COMPETITION USES WAN WEB informality entry regulation self-employment regulatory enforcement The majority of microenterprises in most developing countries remain informal despite more than a decade of reforms aimed at making it easier and cheaper for them to formalize. This paper summarizes the evidence on the effects of entry reforms and related policy actions to promote firm formalization. Most of these policies result only in a modest increase in the number of formal firms, if at all. Less is known about the impact of other forms of business regulations on the performance of low-scale enterprises. Most informal firms appear not to benefit on net from formalizing, so ease of formalization alone will not lead to most of them formalizing. Increased enforcement of rules can increase formality. Although there is a fiscal benefit of doing this with larger informal firms, it is unclear whether there is a public rationale for trying to formalize subsistence enterprises. 2013-09-26T17:02:41Z 2013-09-26T17:02:41Z 2013-06 http://documents.worldbank.org/curated/en/2013/06/17926606/entry-regulation-formalization-microenterprises-developing-countries http://hdl.handle.net/10986/15866 English en_US Policy Research Working Paper;No. 6507 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNT ACCOUNTING ACCOUNTING SERVICES BUSINESS ENTRY BUSINESS FACILITATION BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESS REGULATIONS BUSINESS TAXES COMMERCE COMPANY CORPORATION CUSTOMER BASE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT EMPLOYMENT ENABLING ENVIRONMENT ENTREPRENEURS ENTREPRENEURSHIP FIRMS GOVERNMENT CONTRACTS GOVERNMENT OFFICES GOVERNMENT POLICY GOVERNMENT REVENUES IMPACT EVALUATION INSPECTION INSPECTIONS LICENSE LICENSE FEE LICENSES LICENSING LOAN MARKET ENTRY MARKETING MICROENTERPRISES ONE-STOP SHOP OPEN ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY REGISTRY REGULATORY BURDENS REGULATORY REFORM RESULT RESULTS SALES SCALE ENTERPRISES SHOP SMALL BUSINESSES SMALL FIRMS SMALL SCALE ENTERPRISES SME SUPPLIERS TAXATION TRANSACTION UNFAIR COMPETITION USES WAN WEB informality entry regulation self-employment regulatory enforcement
spellingShingle	ACCOUNT ACCOUNTING ACCOUNTING SERVICES BUSINESS ENTRY BUSINESS FACILITATION BUSINESS REGISTRATION BUSINESS REGISTRATIONS BUSINESS REGULATIONS BUSINESS TAXES COMMERCE COMPANY CORPORATION CUSTOMER BASE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT EMPLOYMENT ENABLING ENVIRONMENT ENTREPRENEURS ENTREPRENEURSHIP FIRMS GOVERNMENT CONTRACTS GOVERNMENT OFFICES GOVERNMENT POLICY GOVERNMENT REVENUES IMPACT EVALUATION INSPECTION INSPECTIONS LICENSE LICENSE FEE LICENSES LICENSING LOAN MARKET ENTRY MARKETING MICROENTERPRISES ONE-STOP SHOP OPEN ACCESS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY REGISTRY REGULATORY BURDENS REGULATORY REFORM RESULT RESULTS SALES SCALE ENTERPRISES SHOP SMALL BUSINESSES SMALL FIRMS SMALL SCALE ENTERPRISES SME SUPPLIERS TAXATION TRANSACTION UNFAIR COMPETITION USES WAN WEB informality entry regulation self-employment regulatory enforcement Bruhn, Miriam McKenzie, David Entry Regulation and Formalization of Microenterprises in Developing Countries
relation	Policy Research Working Paper;No. 6507
description	The majority of microenterprises in most developing countries remain informal despite more than a decade of reforms aimed at making it easier and cheaper for them to formalize. This paper summarizes the evidence on the effects of entry reforms and related policy actions to promote firm formalization. Most of these policies result only in a modest increase in the number of formal firms, if at all. Less is known about the impact of other forms of business regulations on the performance of low-scale enterprises. Most informal firms appear not to benefit on net from formalizing, so ease of formalization alone will not lead to most of them formalizing. Increased enforcement of rules can increase formality. Although there is a fiscal benefit of doing this with larger informal firms, it is unclear whether there is a public rationale for trying to formalize subsistence enterprises.
format	Publications & Research :: Policy Research Working Paper
author	Bruhn, Miriam McKenzie, David
author_facet	Bruhn, Miriam McKenzie, David
author_sort	Bruhn, Miriam
title	Entry Regulation and Formalization of Microenterprises in Developing Countries
title_short	Entry Regulation and Formalization of Microenterprises in Developing Countries
title_full	Entry Regulation and Formalization of Microenterprises in Developing Countries
title_fullStr	Entry Regulation and Formalization of Microenterprises in Developing Countries
title_full_unstemmed	Entry Regulation and Formalization of Microenterprises in Developing Countries
title_sort	entry regulation and formalization of microenterprises in developing countries
publisher	World Bank, Washington, DC
publishDate	2013
url	http://documents.worldbank.org/curated/en/2013/06/17926606/entry-regulation-formalization-microenterprises-developing-countries http://hdl.handle.net/10986/15866
_version_	1764431800109629440

Entry Regulation and Formalization of Microenterprises in Developing Countries

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