Informal Enterprises in Kenya
This note draws from an emerging literature on firm informality as well as data collected on micro enterprises and informal firms as part of the World Bank’s enterprise survey initiative for Kenya. The purpose of the note is to assess the main cons...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26580308/informal-enterprises-kenya http://hdl.handle.net/10986/24973 |
| Summary: | This note draws from an emerging
literature on firm informality as well as data collected on
micro enterprises and informal firms as part of the World
Bank’s enterprise survey initiative for Kenya. The purpose
of the note is to assess the main constraints facing
informal firms, identify patterns of productivity and firm
dynamics, and better understand drivers for formalization.
Section one provides an overview of key characteristics and
main investment climate constraints facing informal firms.
In section two, patterns of informal firm finance are
explored, while in sections three and four, labor
productivity and drivers of firm growth are analyzed.
Section five examines incentives to remain informal and
policies that can catalyze formalization. This is followed
by a conclusion. Due to the sampling methodology used, all
results pertain to the sample of surveyed firms; hence, due
caution is necessary in extrapolating the results to the
broader informal sector in Kenya. Nevertheless, the
assessment of the surveyed firms could provide important
information on identifying policies as well as firm-level
support that could boost productivity and catalyze
formalization. This could have important implications for
economic growth and job creation in Kenya. |
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