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Measuring Microenterprise Profits : Don't Ask How the Sausage is Made

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dc.contributor.authorde Mel, Suresh
dc.contributor.authorMcKenzie, David
dc.contributor.authorWoodruff, Christopher
dc.date.accessioned2012-06-04T21:54:20Z
dc.date.available2012-06-04T21:54:20Z
dc.date.issued2007-05
dc.description.abstractA large share of the world's poor is self-employed. Accurate measurement of profits from microenterprises is therefore critical for studying poverty and inequality, measuring the returns to education, and evaluating the success of microfinance programs. But a myriad of problems plague the measurement of profits. The authors report on a variety of different experiments conducted to better understand the importance of some of these problems and to draw recommendations for collecting profit data. In particular, they (1) examine how far we can reconcile self-reported profits and reports of revenue minus expenses through more detailed questions; (2) examine recall errors in sales and report on the results of experiments which randomly allocated account books to firms; and (3) ask firms how much firms like theirs underreport sales in surveys like this, and have research assistants observe the firms at random times 15-16 times during a month to provide measures for comparison. The authors conclude that firms underreport revenues by about 30 percent, that account diaries have significant effects on both revenues and expenses but not on profits, and that simply asking profits provides a more accurate measure of firm profits than detailed questions on revenues and expenses.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/05/7585334/measuring-microenterprise-profits-dont-ask-sausage-made
dc.identifier.doi10.1596/1813-9450-4229
dc.identifier.urihttps://hdl.handle.net/10986/7075
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4229
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectACCOUNT
dc.subjectACCOUNTING
dc.subjectACCOUNTS
dc.subjectBOOKKEEPING
dc.subjectBUSINESS EXPENSES
dc.subjectBUSINESS TRAINING
dc.subjectEARNING
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectINCOME
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectLIVING STANDARDS
dc.subjectLOTTERY
dc.subjectPRODUCTION FUNCTION
dc.subjectREPORTING
dc.subjectSALARIES
dc.subjectSALARY
dc.subjectSALES
dc.subjectSELLING
dc.subjectVARIABLE COSTS
dc.subjectWAGE
dc.subjectWAGES
dc.subjectMicrodata Set
dc.titleMeasuring Microenterprise Profits : Don't Ask How the Sausage is Madeen
dspace.entity.typePublication
okr.crosscuttingsolutionareaPublic-Private Partnerships
okr.crossref.titleMeasuring Microenterprise Profits : Don't Ask How The Sausage Is Made
okr.date.doiregistration2025-04-10T10:03:23.944306Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/05/7585334/measuring-microenterprise-profits-dont-ask-sausage-made
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTrade and Competitiveness
okr.guid374121468177529587
okr.identifier.doi10.1596/1813-9450-4229
okr.identifier.externaldocumentum000016406_20070504134046
okr.identifier.internaldocumentum7585334
okr.identifier.reportWPS4229
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/05/04/000016406_20070504134046/Rendered/PDF/wps4229.pdfen
okr.relation.associateddatasethttp://microdata.worldbank.org/index.php/catalog/1243
okr.relation.associatedurlhttps://openknowledge.worldbank.org/handle/10986/5594
okr.topicPrivate Sector Development::Business Environment
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Income
okr.topicPrivate Sector Development::Competitiveness and Competition Policy
okr.topicPrivate Sector Development::Business in Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isAuthorOfPublication.latestForDiscovery148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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