Publication:
Informal Firms in Mozambique: Status and Potential

Simple item page
dc.contributor.authorAga, Gemechu
dc.contributor.authorCampos, Francisco
dc.contributor.authorConconi, Adriana
dc.contributor.authorDavies, Elwyn
dc.contributor.authorGeginat, Carolin
dc.date.accessioned2021-07-01T13:53:36Z
dc.date.available2021-07-01T13:53:36Z
dc.date.issued2021-06
dc.description.abstractIn most countries in Africa, the informal sector is large and exhibits low levels of productivity compared to the formal economy: informal firms are typically small, inefficient, and run by entrepreneurs with low levels of education. This paper presents novel representative firm-level data collected on informal firms in the three largest cities of Mozambique, as well as data of microenterprises, formally registered businesses with less than 5 employees, the segment of the private sector that compares best to informal firms. Compared to formal microenterprises, informal firms sell about 14 times less, make 17 times lower profits and are 2–3 times less productive. Almost two-thirds (61 percent) of these performance gaps can be explained by differences in firm characteristics: informal firms are smaller and have limited skills, adapt fewer good business practices, use less capital and production inputs and are less likely to have access to finance. The rest of the productivity gap is explained by differential returns. Despite this “duality” between formality and informality, there is nevertheless a small but significant group of informal enterprises (7.6 percent of informal firms, representing 10.6 percent of employment in the informal sector) that in their characteristics and productivity levels are similar to formal microenterprises. Policies should take this heterogeneity into account.en
dc.identifierhttp://documents.worldbank.org/curated/en/728261624545269477/Informal-Firms-in-Mozambique-Status-and-Potential
dc.identifier.doi10.1596/1813-9450-9712
dc.identifier.urihttps://hdl.handle.net/10986/35883
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9712
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectINFORMAL SECTOR
dc.subjectSMALL AND MEDIUM-SIZED ENTERPRISES
dc.subjectINFORMALITY
dc.subjectBUSINESS REGISTRATION
dc.subjectACCESS TO FINANCE
dc.subjectTAXATION
dc.titleInformal Firms in Mozambiqueen
dc.title.subtitleStatus and Potentialen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleInformal Firms in Mozambique: Status and Potential
okr.date.disclosure2021-06-24
okr.date.doiregistration2025-04-10T10:23:47.406406Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/728261624545269477/Informal-Firms-in-Mozambique-Status-and-Potential
okr.guid728261624545269477
okr.identifier.doi10.1596/1813-9450-9712
okr.identifier.externaldocumentum090224b088748fb8_1_0
okr.identifier.internaldocumentum33209498
okr.identifier.reportWPS9712
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/728261624545269477/pdf/Informal-Firms-in-Mozambique-Status-and-Potential.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryMozambique
okr.topicPrivate Sector Development::Enterprise Development & Reform
okr.topicPrivate Sector Development::Legal Regulation and Business Environment
okr.topicPrivate Sector Development::Private Sector Economics
okr.topicPrivate Sector Development::Small and Medium Size Enterprises
okr.unitGlobal Indicators Group, Development Economics; and the Finance, Competitiveness and Innovation Global Practice
relation.isAuthorOfPublication8e817369-3606-5d94-8e8b-b1cc5676daf1
relation.isAuthorOfPublication.latestForDiscovery8e817369-3606-5d94-8e8b-b1cc5676daf1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
Informal-Firms-in-Mozambique-Status-and-Potential.pdf
Size:
1.08 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
Informal-Firms-in-Mozambique-Status-and-Potential.txt
Size:
108.75 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers