Unlocking Potential

In the past two decades, research on the informal sector has emphasized the heterogeneity of this part of the economy, example in terms of entry costs, firm size, and access to credit, forward- and backward linkages as well as human and physical capital endowments. Yet, not much research has investigated the causes of this heterogeneity and the implied inefficiencies. This is true in particular for Sub-Saharan Africa, where informality dominates urban labor markets. Understanding these causes and the implied inefficiencies is however necessary to design policy interventions that are able to remove the most binding constraints for informal entrepreneurs. This note summarizes the main findings and policy conclusions from a research project that analyzes the quantitative importance of various constraints to informal enterprises in West Africa and Madagascar.

Bibliographic Details

Main Authors:	Grimm, Michael, van der Hoeven, Rolph, Lay, Jann
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2011-11
Subjects:	ADVANCED COUNTRIES, ADVERSE INCENTIVE, AGRICULTURE, BANK POLICY, BARRIERS TO ENTRY, BINDING CONSTRAINT, BUSINESS DEVELOPMENT, BUSINESS ENVIRONMENT, BUSINESS RISK, CAPACITY BUILDING, CAPITAL ACCUMULATION, CAPITAL CONSTRAINTS, CAPITAL INTENSITY, CAPITAL INVESTMENT, CAPITAL MARKET, CAPITAL RETURNS, CAPITAL SHORTAGES, CAPITAL STOCK, COMPETITION POLICIES, CONTRACT ENFORCEMENT, CREDIT CONSTRAINTS, CREDIT MARKET, CREDIT PROGRAM, CREDIT PROVIDERS, DATA ANALYSIS, DEGREE OF RISK, DEVELOPING COUNTRIES, DISTRIBUTION CHANNEL, DYNAMIC ECONOMIES, E-MAIL, ECONOMIC ACTIVITIES, ECONOMIC CONSTRAINTS, ECONOMIC DEVELOPMENT, ELECTRICITY, EMPLOYMENT, ENTERPRISE PERFORMANCE, ENTREPRENEUR, ENTREPRENEURSHIP, ENTRY BARRIERS, EXPANSION, EXPENDITURES, EXPOSURE, FINANCIAL SERVICES, FINANCIAL SUPPORT, FIRM GROWTH, FIRM PERFORMANCE, FIRM PERFORMANCES, FIRM SIZE, FIRMS, FORMAL ECONOMY, GOVERNMENT REGULATIONS, GROWTH POTENTIAL, HOLDING, HOUSEHOLD INCOMES, HOUSEHOLD WEALTH, HUMAN CAPITAL, IMPACT ASSESSMENT, INCENTIVE EFFECTS, INCOME, INDUSTRIAL DEVELOPMENT, INFORMAL ECONOMY, INNOVATION, INSTITUTIONAL BARRIERS, INSTITUTIONAL CONSTRAINTS, INSURANCE, INTEREST RATES, INTERNATIONAL LABOUR ORGANIZATION, INVENTORY, INVESTING, INVESTMENT DECISIONS, INVESTMENT OPPORTUNITIES, INVESTMENT RATES, JOB CREATION, LABOR MARKET, LAW ENFORCEMENT, LEGAL FRAMEWORKS, LOAN, LOCAL MARKET, MANAGERIAL SKILLS, MARKET CONSTRAINTS, MENU, MICRO-CREDIT, MICRO-DATA, MICROCREDIT, MICROENTERPRISES, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE LOANS, MONEY LENDERS, NUMBER OF VISITORS, OUTPUTS, PHONE, PHYSICAL CAPITAL INVESTMENTS, POVERTY ALLEVIATION, PRIVATE SECTORS, PRODUCTIVITY, RAPID EXPANSION, RE-INVESTMENT, REMITTANCES, REPUTATION, RESULT, RETURN, RISK AVERSE, RISK AVERSION, RISK-AVERSE INDIVIDUALS, SAVINGS, SMALL BUSINESSES, SMALL ENTERPRISES, SMALL FIRM, SOCIAL CAPITAL, SOCIAL NETWORKS, SUPERMARKETS, TAX, TAXATION, TELECOMMUNICATION, TOTAL FACTOR PRODUCTIVITY, TRANSMISSION, TRUST FUND, WORKING HOURS, WORLD ECONOMY,
Online Access:	http://documents.worldbank.org/curated/en/895161468337243229/Unlocking-potential-tackling-economic-institutional-and-social-constraints-of-informal-entrepreneurship-in-Sub-Saharan-Africa-main-findings-and-policy-conclusions https://hdl.handle.net/10986/26878
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