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Different views have been put forward to explain why most firms in developing countries operate informally. One view argues that informal-business owners are entrepreneurs who do not register their firm because the regulation process is too complex. Another argues that informal-business owners are people trying to make a living while searching for a wage job. This paper contributes to recent literature that argues that both factors are at work. The author uses discriminant analysis to separate informal business owners into two groups: those with personal characteristics similar to wage workers, and those with traits similar to formal-business owners. The paper then examines how the two groups were affected by a business registration reform in Mexico. Informal-business owners from the second group were more likely to register their business after the reform. By contrast, informal-business owners from the first group were less likely to register but more likely to become wage workers after the reform. This is consistent with the finding in Bruhn (2008 and 2011) that the reform led to job creation. It also explains why the earlier papers find that the reform didn?t affect the number of new registrations by all informal business owners.

Access to Finance --- Business Environment --- Business in Development --- Business registration reform --- Competitiveness and Competition Policy --- E-Business --- Entrepreneurship --- Finance and Financial Sector Development --- Informal sector --- Private Sector Development

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Different views have been put forward to explain why most firms in developing countries operate informally. One view argues that informal-business owners are entrepreneurs who do not register their firm because the regulation process is too complex. Another argues that informal-business owners are people trying to make a living while searching for a wage job. This paper contributes to recent literature that argues that both factors are at work. The author uses discriminant analysis to separate informal business owners into two groups: those with personal characteristics similar to wage workers, and those with traits similar to formal-business owners. The paper then examines how the two groups were affected by a business registration reform in Mexico. Informal-business owners from the second group were more likely to register their business after the reform. By contrast, informal-business owners from the first group were less likely to register but more likely to become wage workers after the reform. This is consistent with the finding in Bruhn (2008 and 2011) that the reform led to job creation. It also explains why the earlier papers find that the reform didn?t affect the number of new registrations by all informal business owners.

Access to Finance --- Business Environment --- Business in Development --- Business registration reform --- Competitiveness and Competition Policy --- E-Business --- Entrepreneurship --- Finance and Financial Sector Development --- Informal sector --- Private Sector Development

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Business training programs are a popular policy option to try to improve the performance of enterprises around the world. The last few years have seen rapid growth in the number of evaluations of these programs in developing countries. This paper undertakes a critical review of these studies with the goal of synthesizing the emerging lessons and understanding the limitations of the existing research and the areas in which more work is needed. It finds that there is substantial heterogeneity in the length, content, and types of firms participating in the training programs evaluated. Many evaluations suffer from low statistical power, measure impacts only within a year of training, and experience problems with survey attrition and measurement of firm profits and revenues. Over these short time horizons, there are relatively modest impacts of training on survivorship of existing firms, but stronger evidence that training programs help prospective owners launch new businesses more quickly. Most studies find that existing firm owners implement some of the practices taught in training, but the magnitudes of these improvements in practices are often relatively modest. Few studies find significant impacts on profits or sales, although a couple of the studies with more statistical power have done so. Some studies have also found benefits to microfinance organizations of offering training. To date there is little evidence to help guide policymakers as to whether any impacts found come from trained firms competing away sales from other businesses versus through productivity improvements, and little evidence to guide the development of the provision of training at market prices. The paper concludes by summarizing some directions and key questions for future studies.

Access & Equity in Basic Education --- Business training --- Competitiveness and Competition Policy --- Consulting --- Education for All --- Finance and Financial Sector Development --- Financial Literacy --- Firm Productivity --- Primary Education --- Private Sector Development --- Randomized experiments

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The objective of this report is two-fold. First, it is to raise awareness of the health and economic damages of industrial air pollution in key oblasts and to develop long-term options of improving industrial competitiveness. The second objective is to synthesize the results of a pilot benchmarking exercise of selected industries on natural resource and energy efficiency improvements, cleaner production and identify options for cleaner and greener industrial production in Kazakhstan. The report is structured as follows. Section two motivates the cleaner production topic by providing some estimates of the health impacts and economic costs of air pollution in Kazakhstan. Air pollution is selected because of data availability, but also because it is one of Kazakhstan's major environmental priorities. Section three provides a discussion of the current regulatory framework that industry faces as well as its limitations. Section four reviews the results from the pilot benchmarking exercise among selected industrial firms that were subject to 'quick-scans' for efficiency and pollution reduction improvements. Section five gives some examples how businesses have responded to environmental norms and section six reviews the major constraints faced by industry in environmental compliance and clean technology adoption. Finally, section seven provides some concrete recommendations in areas that both government and industry can pursue in achieving greater environmental compliance and clean technology adoption.

Air Quality --- Air Quality & Clean Air --- Competitiveness and Competition Policy --- Emissions --- Environment --- Environment and Natural Resources Management --- Environmental Economics & Policies --- Environmental Policies and Institutions --- Environmental Protection --- Industrial Economics --- Industrial Emissions --- Industry --- Pollution Management and Environmental Health --- Private Sector Development

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Business training programs are a popular policy option to try to improve the performance of enterprises around the world. The last few years have seen rapid growth in the number of evaluations of these programs in developing countries. This paper undertakes a critical review of these studies with the goal of synthesizing the emerging lessons and understanding the limitations of the existing research and the areas in which more work is needed. It finds that there is substantial heterogeneity in the length, content, and types of firms participating in the training programs evaluated. Many evaluations suffer from low statistical power, measure impacts only within a year of training, and experience problems with survey attrition and measurement of firm profits and revenues. Over these short time horizons, there are relatively modest impacts of training on survivorship of existing firms, but stronger evidence that training programs help prospective owners launch new businesses more quickly. Most studies find that existing firm owners implement some of the practices taught in training, but the magnitudes of these improvements in practices are often relatively modest. Few studies find significant impacts on profits or sales, although a couple of the studies with more statistical power have done so. Some studies have also found benefits to microfinance organizations of offering training. To date there is little evidence to help guide policymakers as to whether any impacts found come from trained firms competing away sales from other businesses versus through productivity improvements, and little evidence to guide the development of the provision of training at market prices. The paper concludes by summarizing some directions and key questions for future studies.

Access & Equity in Basic Education --- Business training --- Competitiveness and Competition Policy --- Consulting --- Education for All --- Finance and Financial Sector Development --- Financial Literacy --- Firm Productivity --- Primary Education --- Private Sector Development --- Randomized experiments