Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration
Interventions to incentivize business formalization over the past decades have shown mixed results (Bruhn and McKenzie, 2013; Bruhn and McKenzie, 2018; Floridi et al., 2019) and brought limited knowledge on how to address informality in a systemati...
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| Format: | Brief |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/599391605764444802/Re-thinking-the-Approach-to-Informal-Businesses-Typologies-Evidence-and-Future-Exploration http://hdl.handle.net/10986/34814 |
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okr-10986-348142021-04-23T14:02:09Z Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration Marusic, Andreja Nielsen, William Ghossein, Tania Solf, Sylvia INFORMALITY MICROENTERPRISES TAXATION ACCESS TO FINANCE FORMALIZATION Interventions to incentivize business formalization over the past decades have shown mixed results (Bruhn and McKenzie, 2013; Bruhn and McKenzie, 2018; Floridi et al., 2019) and brought limited knowledge on how to address informality in a systematic way. Adding to the challenge is determining whether informality should be a direct target, or is rather something indirectly impacted through development, improved governance, better regulation and improved public services (Loayza 2016; Loayza, 2007; Perry et al., 2007; World Bank, 2009). The informal sector includes businesses, workers, and activities operating outside the legal and regulatory systems (Loayza 2016). The scale of the informal sector in emerging and developing economies, which accounts for 25 to 40 percent of GDP and often more than 60 percent of employment (World Bank 2020), merits rethinking approaches to formalization. To support greater rates of formalization, this note proposes four specific areas for further research and pilot interventions: 1) supporting informal clusters, 2) providing support to informal businesses without a target of formalization, 3) simplified, intermediate and temporary legal statuses of informal businesses to better align with business needs and government goals, and 4) understanding behavioral insights that influence businesses’ decisions to inform policymaking. 2020-11-24T20:45:51Z 2020-11-24T20:45:51Z 2020-11-18 Brief http://documents.worldbank.org/curated/en/599391605764444802/Re-thinking-the-Approach-to-Informal-Businesses-Typologies-Evidence-and-Future-Exploration http://hdl.handle.net/10986/34814 English Finance, Competitiveness and Innovation in Focus CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
INFORMALITY MICROENTERPRISES TAXATION ACCESS TO FINANCE FORMALIZATION |
| spellingShingle |
INFORMALITY MICROENTERPRISES TAXATION ACCESS TO FINANCE FORMALIZATION Marusic, Andreja Nielsen, William Ghossein, Tania Solf, Sylvia Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration |
| relation |
Finance, Competitiveness and Innovation in Focus |
| description |
Interventions to incentivize business
formalization over the past decades have shown mixed results
(Bruhn and McKenzie, 2013; Bruhn and McKenzie, 2018; Floridi
et al., 2019) and brought limited knowledge on how to
address informality in a systematic way. Adding to the
challenge is determining whether informality should be a
direct target, or is rather something indirectly impacted
through development, improved governance, better regulation
and improved public services (Loayza 2016; Loayza, 2007;
Perry et al., 2007; World Bank, 2009). The informal sector
includes businesses, workers, and activities operating
outside the legal and regulatory systems (Loayza 2016). The
scale of the informal sector in emerging and developing
economies, which accounts for 25 to 40 percent of GDP and
often more than 60 percent of employment (World Bank 2020),
merits rethinking approaches to formalization. To support
greater rates of formalization, this note proposes four
specific areas for further research and pilot interventions:
1) supporting informal clusters, 2) providing support to
informal businesses without a target of formalization, 3)
simplified, intermediate and temporary legal statuses of
informal businesses to better align with business needs and
government goals, and 4) understanding behavioral insights
that influence businesses’ decisions to inform policymaking. |
| format |
Brief |
| author |
Marusic, Andreja Nielsen, William Ghossein, Tania Solf, Sylvia |
| author_facet |
Marusic, Andreja Nielsen, William Ghossein, Tania Solf, Sylvia |
| author_sort |
Marusic, Andreja |
| title |
Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration |
| title_short |
Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration |
| title_full |
Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration |
| title_fullStr |
Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration |
| title_full_unstemmed |
Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration |
| title_sort |
re-thinking the approach to informal businesses : typologies, evidence and future exploration |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/599391605764444802/Re-thinking-the-Approach-to-Informal-Businesses-Typologies-Evidence-and-Future-Exploration http://hdl.handle.net/10986/34814 |
| _version_ |
1764481711356248064 |