Working Paper

Finding a Path to Formalization in Benin : Early Results after the Introduction of the Entreprenant Legal Status

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Benhassine, Najy
dc.contributor.author
McKenzie, David
dc.contributor.author
Pouliquen, Victor
dc.contributor.author
Santini, Massimiliano
dc.date.accessioned
2015-12-22T16:25:24Z
dc.date.available
2015-12-22T16:25:24Z
dc.date.issued
2015-12
dc.description.abstract
In April 2014, the Government of Benin launched the entreprenant status, a simplified and free legal regime offered to small informal businesses to enter the formal economy. This paper presents the short-term results of a randomized impact evaluation testing three different versions of the entreprenant status on business registration decisions, each version including incremental incentives to registration: (i) information on the new legal status and its benefits, (ii) business training, counseling services, and support to open a bank account, (iii) tax mediation services. The study included 3,600 informal businesses operating with a fixed location in Cotonou, Benin, which were randomly allocated between three treatment groups and one control group. One year after the program launch, all versions of the program had significant impact on formalization rates. The impact was 9.1 percentage points in the first treatment group; 13 percentage points in the second group; and 15.8 percentage points in the last group. The program had a higher impact on male business owners, with more education, operating outside Dantokpa Market, in sectors other than trade, and that before being offered the incentives to formalization had characteristics similar to businesses that were already formal. Data from a second follow-up survey, which is expected to take place in March 2016, will explore the impacts on other outcomes, like business performances or access to banking.
en
dc.identifier
http://documents.worldbank.org/curated/en/2015/12/25660436/finding-path-formalization-benin-early-results-after-introduction-entreprenant-legal-status
dc.identifier.uri
http://hdl.handle.net/10986/23472
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7510
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
BUSINESS FACILITATION
dc.subject
DEPOSIT
dc.subject
LIABILITY
dc.subject
QUALITY OF SERVICES
dc.subject
CHECKS
dc.subject
ACCOUNTING
dc.subject
ENTERPRISE DEVELOPMENT
dc.subject
TAX EXEMPTION
dc.subject
LEGAL ENVIRONMENT
dc.subject
CERTIFICATE
dc.subject
SALES
dc.subject
DUMMY VARIABLES
dc.subject
MEDIUM ENTERPRISES
dc.subject
OPTION
dc.subject
EXCHANGE
dc.subject
BANKING SYSTEM
dc.subject
INFORMATION
dc.subject
BANK ACCOUNT
dc.subject
DEVELOPING COUNTRIES
dc.subject
SELLING
dc.subject
MONITORING
dc.subject
ACCESS TO BANK
dc.subject
FINANCIAL STATEMENTS
dc.subject
IMPACTS
dc.subject
LOAN
dc.subject
TRADE SECTOR
dc.subject
TAX
dc.subject
OWNERSHIP
dc.subject
QUALITY
dc.subject
DUMMY VARIABLE
dc.subject
BENEFICIARIES
dc.subject
INTERNATIONAL BANK
dc.subject
OPEN ACCESS
dc.subject
ENABLING ENVIRONMENT
dc.subject
INFORMATION SERVICES
dc.subject
BUDGET
dc.subject
ECONOMIC ACTIVITY
dc.subject
SMALL BUSINESS
dc.subject
INSTITUTIONS
dc.subject
INTERNATIONAL FINANCE
dc.subject
INFORMATION BANKS
dc.subject
ADVERTISING
dc.subject
TECHNICAL ASSISTANCE
dc.subject
BUSINESS REGULATION
dc.subject
COMMERCE
dc.subject
PHONE NUMBER
dc.subject
ONE-STOP SHOP
dc.subject
COMMERCIAL BANK
dc.subject
INFORMATION SERVICES
dc.subject
CONTRACTS
dc.subject
IMPACT EVALUATION
dc.subject
TAX REGIME
dc.subject
LICENSE
dc.subject
TRADING
dc.subject
TAX EXEMPTIONS
dc.subject
PRODUCTIVITY
dc.subject
BUSINESS SERVICES
dc.subject
MARKETS
dc.subject
DIRECT COSTS
dc.subject
INTERNATIONAL DEVELOPMENT
dc.subject
FINANCIAL PRODUCTS
dc.subject
LOANS
dc.subject
BUSINESS ENTRY
dc.subject
ARTISANS
dc.subject
BUSINESS REGISTRATION
dc.subject
DATABASES
dc.subject
CASH TRANSFERS
dc.subject
ACCOUNT
dc.subject
BANK FINANCING
dc.subject
FINANCE
dc.subject
TAXES
dc.subject
TAX FORMS
dc.subject
PHONE
dc.subject
HUMAN CAPITAL
dc.subject
GOOD
dc.subject
TAX RATE
dc.subject
INSPECTION
dc.subject
BUSINESS MANAGEMENT
dc.subject
CONTACT INFORMATION
dc.subject
BUSINESS PLAN
dc.subject
TRANSPARENCY
dc.subject
RESULTS
dc.subject
ACCESS TO BANKS
dc.subject
BUSINESS PERFORMANCES
dc.subject
TURNOVER
dc.subject
FUTURE
dc.subject
MOBILE PHONE
dc.subject
COMPETITIVENESS
dc.subject
ELECTRICITY
dc.subject
RETURNS
dc.subject
TAX REGIMES
dc.subject
CONTRACT
dc.subject
PROTOCOLS
dc.subject
FIRM PERFORMANCE
dc.subject
TAX RATES
dc.subject
COST
dc.subject
INFORMATION BANKS
dc.subject
SHARES
dc.subject
MARKET
dc.subject
NEW MARKETS
dc.subject
COMMERCIAL LAW
dc.subject
BANK ACCOUNTS
dc.subject
LEVY
dc.subject
ADMINISTRATION
dc.subject
RESULT
dc.subject
BOOKKEEPING
dc.subject
BANK LOAN
dc.subject
REGISTRATION SYSTEM
dc.subject
BANK LOANS
dc.subject
BUSINESS ACTIVITY
dc.subject
NETWORK
dc.subject
BUSINESSES
dc.subject
BUSINESS
dc.subject
COMMERCIAL BANKS
dc.subject
SHARE
dc.subject
TAX SYSTEM
dc.subject
COLLATERAL
dc.subject
PERFORMANCE
dc.subject
INSPECTIONS
dc.subject
BUSINESS PLANS
dc.subject
INSTITUTION
dc.subject
PROFIT
dc.subject
PROTOCOL
dc.subject
ADMINISTRATIVE PROCESS
dc.subject
ACCOUNTS
dc.subject
CHECK
dc.subject
DEBIT CARD
dc.subject
COMMUNICATION
dc.subject
CHAMBER OF COMMERCE
dc.subject
UNFAIR COMPETITION
dc.subject
CUSTOMERS
dc.subject
DATABASE
dc.subject
PROFITS
dc.subject
IMPLEMENTING AGENCIES
dc.subject
LIMITED LIABILITY
dc.subject
BUSINESS PERFORMANCE
dc.subject
IMPLEMENTATION
dc.subject
SMALL BUSINESSES
dc.subject
PERFORMANCES
dc.subject
REGISTRATION PROCESS
dc.subject
BUSINESS TRAINING
dc.subject
TAX OBLIGATIONS
dc.subject
MICROENTERPRISES
dc.title
Finding a Path to Formalization in Benin
en
dc.title.subtitle
Early Results after the Introduction of the Entreprenant Legal Status
en
dc.type
Working Paper
en
okr.date.disclosure
2015-12-09
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2015/12/25660436/finding-path-formalization-benin-early-results-after-introduction-entreprenant-legal-status
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7510
okr.identifier.externaldocumentum
090224b083c426aa_2_0
okr.identifier.internaldocumentum
25660436
okr.identifier.report
WPS7510
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/12/09/090224b083c426aa/2_0/Rendered/PDF/Finding0a0path0prenant0legal0status.pdf
en
okr.region.administrative
Africa
okr.region.country
Benin
okr.topic
Private Sector Development :: Competitiveness and Competition Policy
okr.topic
Private Sector Development :: Business in Development
okr.topic
Private Sector Development :: Business Environment
okr.topic
Private Sector Development :: E-Business
okr.unit
Trade and Competitiveness Global Practice Group

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