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...

Full description

Bibliographic Details
Main Authors: Rada, Kristtian, Blotte, Ursula
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
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
id okr-10986-10715
recordtype oai_dc
spelling 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