HOW TO COLLECT AND ANALYZE DATA ON INFORMAL ENTERPRISES IN

Transcription

1 HOW TO COLLECT AND ANALYZE DATA ON INFORMAL ENTERPRISES IN

2 Information needs If we want to design a strategy to promote the transition of informal enterprises to formality, what information do we need?

3 Information sources National/local sources: household and enterprise surveys, data from the tax administration, business registries, ministries of industry/economy International sources: World Bank, ILO, OECD World Economic Forum Primary data: Surveys, focus groups

4 Business/establishment surveys Data items: Constraints & potential Output, profit Employment Markets USUALLY BASED ON BUSINESS REGISTRIES: ONLY FORMAL ESTABLISHMENTS! 4

5 International sources of information Enterprise Surveys World Bank Global Competitiveness Index (GCI) World Economic Forum Global Entrepreneurship Monitor GEM Doing Business World Bank Women, business and the Law World Bank Enabling Environment for Sustainable Enterprises ILO 5

6 World Bank Enterprise Surveys Face-to-face interviews with managers/owners Information on 125,000 firms worldwide 139 countries Access to finance, corruption, infrastructure, crime, competition, performance measures et. ONLY FORMAL ESTABLISHMENTS! 6

7 Business environment (Indonesia, 2015) Source: World Bank Enterprise Survey 7

8 World Bank Doing Business Doing Business provides objective measures of business regulations and their enforcement across 189 economies. Each economy is ranked according to 10 sets of indicators. These are combined into an overall "ease of doing business" ranking.

9 World Bank Doing Business Doing Business presents quantitative indicators on business regulation and the protection of property rights that can be compared across 20 MENA countries

10 Some data from Doing Business : Armenia Ease of doing business in Armenia Resolving insolvency Enforcing contracts Starting a business Construction permits Getting Electricity Registering property Trading across borders Getting credit Paying taxes Protecting minority investors

11 Some data from Doing Business : Rwanda Ease of doing business in Rwanda Enforcing contracts Resolving insolvency Starting a business Construction permits Getting Electricity Trading across borders Registering property Paying taxes Getting credit Protecting minority investors

12 Global Entrepreneurship Monitor In each economy, GEM looks at two elements: The entrepreneurial behaviour and attitudes of individuals The national context and how that impacts entrepreneurship 18 years of data 200,000 interviews a year 100 countries 500 specialists in entrepreneurship research 300 academic and research institutions 11/11/

13 Some data from the Global Entrepreneurship Monitor: Nigeria Perceived opportunities Perceived capabilities Entrepreneurial intentions rate Total early entrepreneurship rate Established business ownership 13

14 The entrepreneurial eco-system in Nigeria according to the Global Entrepreneurship Monitor Physical and services infrastructure Internal market openness Cultural and social norms Financing for entrepreneurs 3,5 3 2,5 2 1,5 1 0,5 0 Governmental support and policies Taxes and bureaucracy Governmental programs Internal market dynamics Basic school entrepreneurial education and training Commercial and professional infrastructure R&D transfer Post school entrepreneurial education and training 14

15 Women, Business and the Law Data on laws and regulations constraining women s entrepreneurship and employment: - Accessing institutions - Using property - Getting a job - Providing incentives - Building credit - Going to court - Protecting women 173 countries 15

16 Some data from Women, Business and the Law: Jordan 16

17 Global competitiveness index: pillars and sub-indices Pillars of competitiveness Sub-indexes Development stages for weighted measuring 17 17

18 Some data from the Global Competitiveness Index: South-East Asia 11/11/

19 Enabling Environment for Sustainable Enterprises (EESE) ILO methodology to assess, advocate and reform the environment in which enterprises start up and grow. Allows stakeholders to identify the major constraints hampering business development; Fosters dialogue between workers, employers and the government to reach shared policy recommendations; Supports the adoption of effective reforms; Unlocks entrepreneurial potential, boosts investments and can generate overall economic growth, create better jobs and reduce poverty.

20 EESE examples Business killers- Montenegro Inadequate regulatory framework Difficult access to financial resources High share of informal economy The existence of corruption at all levels and in all areas A mismatch between education system and labour market needs. Priority areas for policy attention South Africa Improve access to information for buiness start-up and BDS Reduce and simplify burdensome regulations Strenghen the voice of small business in policy and social dialogue Simplify hiring and employement practises Develop new ways to increaase access to finance and market opportunities Maistream enterprise /entrepreneurial training and skills development Supprt the transition to formality

21 Informal enterprise surveys: where would you start? 21

22 Data item What they do The ideal situation to collect information on informal enterprises: Mixed surveys Collect detailed information about households and enterprises Are carried out in two phases: o Phase 1: Household survey phase (economic activities of their members) identifies informal sector entrepreneurs o Phase 2: Enterprise survey phase obtains information about enterprises owned by informal sector entrepreneurs Number of workers in the informal sector and in informal employment (phase 1) and personal, job and household characteristics Number of informal sector units (phase 1) and their characteristics Production, income generation, costs, etc. (phase 2) Number of informal sector entrepreneurs (phase 2) and characteristics related to their person and their household 22

23 Focus groups A large amount of information can be collected in a relatively short time; Can be used to complement other forms of research; Can be put in place relatively easily with limited costs Encourages group interaction; Can be used to ascertain the nature and depth of a constraint.

24 Summary points The goal of the various methods presented is to gather quantitative and qualitative information on informal enterprises and on constraints to enterprise formalization. The information gathered will help to advocate for and desing policies and programmes that promote enterprise formalization. While many sources of data collection and analysis on business and private sector exist, few include the analysis of the informal sector. There is need to fill in this gap and make information available on the informal economy to inform policies