Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru
Obtaining an operating license used to be the most bureaucratic procedure when starting a business in Peru, accounting for 62 percent of the total time. In January 2006, with assistance from the International Finance Corporation (IFC) Latin America...
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Online Access: | http://documents.worldbank.org/curated/en/2007/03/9895112/improving-business-registration-procedures-sub-national-level-case-lima-peru http://hdl.handle.net/10986/10715 |
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okr-10986-107152021-04-23T14:02:52Z Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru Rada, Kristtian Blotte, Ursula ACCOUNTING ADVISORY SERVICES AWARENESS CAMPAIGN BUSINESS DEVELOPMENT BUSINESS ENTRY BUSINESS ENVIRONMENT BUSINESS REGISTRATION BUSINESSES CONTRIBUTIONS EQUIPMENT FLOW OF INFORMATION GLOBAL COMPETITIVENESS INSPECTION INSPECTIONS INSTITUTION INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT JOB CREATION LEGISLATION LICENSE LOCAL MEDIA MARKET RESEARCH MATERIAL MUNICIPAL AUTHORITIES POLITICAL WILL PRIVATE SECTOR REGISTRY RESULTS SALARIES TRAINING WORKSHOPS TRANSACTION WORKING HOURS Obtaining an operating license used to be the most bureaucratic procedure when starting a business in Peru, accounting for 62 percent of the total time. In January 2006, with assistance from the International Finance Corporation (IFC) Latin America and Caribbean (LAC) technical assistance (TA) facility, the metropolitan municipality of Lima launched a new process that reduced the total time needed from 60 to 3 days! In addition, the number of inspections was reduced from five to just one multipurpose inspection; average visits by business owners to the municipality were slashed from 11 to 2; and costs fell by over 50 percent for small firms. In the nine months since the reform was introduced, the municipality registered over 8,314 firms, more than in the last 7 years combined. Here are four key lessons the authors learned along the way: 1) to promote reforms at the sub-national level, it is necessary to get the support of the local media to build awareness of the importance of reducing bureaucratic barriers; 2) when collecting information for the diagnostic, you must work jointly with municipal officers to create a shared understanding of the problem and motivation for change; 3) to implement the new procedures, municipal personnel have to be not only technically trained but also highly motivated and committed; and 4) to avoid the reappearance of the old bottlenecks in the procedure, it is critical that the private sector become a sustainability watchdog. 2012-08-13T12:50:25Z 2012-08-13T12:50:25Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/9895112/improving-business-registration-procedures-sub-national-level-case-lima-peru http://hdl.handle.net/10986/10715 English IFC Smart Lessons Brief CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Latin America & Caribbean Peru |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English |
topic |
ACCOUNTING ADVISORY SERVICES AWARENESS CAMPAIGN BUSINESS DEVELOPMENT BUSINESS ENTRY BUSINESS ENVIRONMENT BUSINESS REGISTRATION BUSINESSES CONTRIBUTIONS EQUIPMENT FLOW OF INFORMATION GLOBAL COMPETITIVENESS INSPECTION INSPECTIONS INSTITUTION INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT JOB CREATION LEGISLATION LICENSE LOCAL MEDIA MARKET RESEARCH MATERIAL MUNICIPAL AUTHORITIES POLITICAL WILL PRIVATE SECTOR REGISTRY RESULTS SALARIES TRAINING WORKSHOPS TRANSACTION WORKING HOURS |
spellingShingle |
ACCOUNTING ADVISORY SERVICES AWARENESS CAMPAIGN BUSINESS DEVELOPMENT BUSINESS ENTRY BUSINESS ENVIRONMENT BUSINESS REGISTRATION BUSINESSES CONTRIBUTIONS EQUIPMENT FLOW OF INFORMATION GLOBAL COMPETITIVENESS INSPECTION INSPECTIONS INSTITUTION INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT JOB CREATION LEGISLATION LICENSE LOCAL MEDIA MARKET RESEARCH MATERIAL MUNICIPAL AUTHORITIES POLITICAL WILL PRIVATE SECTOR REGISTRY RESULTS SALARIES TRAINING WORKSHOPS TRANSACTION WORKING HOURS Rada, Kristtian Blotte, Ursula Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru |
geographic_facet |
Latin America & Caribbean Peru |
relation |
IFC Smart Lessons Brief |
description |
Obtaining an operating license used to
be the most bureaucratic procedure when starting a business
in Peru, accounting for 62 percent of the total time. In
January 2006, with assistance from the International Finance
Corporation (IFC) Latin America and Caribbean (LAC)
technical assistance (TA) facility, the metropolitan
municipality of Lima launched a new process that reduced the
total time needed from 60 to 3 days! In addition, the number
of inspections was reduced from five to just one
multipurpose inspection; average visits by business owners
to the municipality were slashed from 11 to 2; and costs
fell by over 50 percent for small firms. In the nine months
since the reform was introduced, the municipality registered
over 8,314 firms, more than in the last 7 years combined.
Here are four key lessons the authors learned along the way:
1) to promote reforms at the sub-national level, it is
necessary to get the support of the local media to build
awareness of the importance of reducing bureaucratic
barriers; 2) when collecting information for the diagnostic,
you must work jointly with municipal officers to create a
shared understanding of the problem and motivation for
change; 3) to implement the new procedures, municipal
personnel have to be not only technically trained but also
highly motivated and committed; and 4) to avoid the
reappearance of the old bottlenecks in the procedure, it is
critical that the private sector become a sustainability watchdog. |
format |
Publications & Research :: Brief |
author |
Rada, Kristtian Blotte, Ursula |
author_facet |
Rada, Kristtian Blotte, Ursula |
author_sort |
Rada, Kristtian |
title |
Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru |
title_short |
Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru |
title_full |
Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru |
title_fullStr |
Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru |
title_full_unstemmed |
Improving Business Registration Procedures at the Sub-National Level : The Case of Lima, Peru |
title_sort |
improving business registration procedures at the sub-national level : the case of lima, peru |
publisher |
World Bank, Washington, DC |
publishDate |
2012 |
url |
http://documents.worldbank.org/curated/en/2007/03/9895112/improving-business-registration-procedures-sub-national-level-case-lima-peru http://hdl.handle.net/10986/10715 |
_version_ |
1764414109996023808 |