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Unlocking Potential : Tackling Economic, Institutional and Social Constraints of Informal Entrepreneurship in Sub-Saharan Africa

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World Bank (WB)

Abstract: 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.
Type: Working Paper
Publications & Research :: Working Paper
Publications & Research
Link: http://hdl.handle.net/10986/26878
Subject: 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




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