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Re-thinking the Approach to Informal Businesses : Typologies, Evidence and Future Exploration

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collection.link.75
https://openknowledge.worldbank.org/handle/10986/2183
collection.name.75
Investment Climate Assessment
dc.contributor.author
Nielsen, William Iver
dc.contributor.author
Marusic, Andreja
dc.contributor.author
Ghossein, Tania
dc.contributor.author
Solf, Sylvia
dc.date.accessioned
2020-12-14T20:21:43Z
dc.date.available
2020-12-14T20:21:43Z
dc.date.issued
2020-12-09
dc.date.lastModified
2021-04-23T14:02:11Z
dc.description.abstract
Interventions over the past decades to encourage increased business formalization have shown mixed results and produced limited knowledge on how to address informality systematically. 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, merits rethinking approaches to formalization. Based on a review of relevant literature on informality and efforts to promote formalization, this paper will discuss the use of the term “informality” to align with the heterogeneity that exists within the informal sector and to identify factors that drive formality. From there, the paper proposes four specific areas for additional research and pilot interventions: (1) supporting informal clusters; (2) providing support to informal businesses without formalization as a target; (3) developing simplified, intermediate, and temporary legal statuses for informal businesses to better align with business needs and government goals; and (4) understanding behavioral insights that influence businesses’ decisions to remain informal and that can contribute to effective policy making. Throughout this discussion, the authors aim to motivate development and testing of new approaches to informality based on a deepened understanding of the needs of informal businesses.
en
dc.identifier
http://documents.worldbank.org/curated/en/642101607539592355/Re-thinking-the-Approach-to-Informal-Businesses-Typologies-Evidence-and-Future-Exploration
dc.identifier.uri
http://hdl.handle.net/10986/34926
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Finance, Competitiveness and Innovation Insight;
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
INVESTMENT CLIMATE
dc.subject
INFORMAL SECTOR
dc.subject
INFORMALITY
dc.subject
INFORMAL BUSINESS
dc.subject
FORMALIZATION
dc.subject
TAX COMPLIANCE
dc.subject
ENTREPRENEURS
dc.title
Re-thinking the Approach to Informal Businesses
en
dc.title.subtitle
Typologies, Evidence and Future Exploration
en
dc.type
Report
en
okr.date.disclosure
2020-12-09
okr.doctype
Economic & Sector Work
okr.doctype
Economic & Sector Work :: Investment Climate Assessment
okr.docurl
http://documents.worldbank.org/curated/en/642101607539592355/Re-thinking-the-Approach-to-Informal-Businesses-Typologies-Evidence-and-Future-Exploration
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b0880a3f34_1_0
okr.identifier.internaldocumentum
32653799
okr.identifier.report
154884
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/642101607539592355/pdf/Re-thinking-the-Approach-to-Informal-Businesses-Typologies-Evidence-and-Future-Exploration.pdf
en
okr.topic
Private Sector Development :: Enterprise Development & Reform
okr.topic
Private Sector Development :: Legal Regulation and Business Environment
okr.topic
Private Sector Development :: Microenterprises
okr.topic
Private Sector Development :: Private Sector Economics
okr.topic
Social Protections and Labor :: Labor Markets
okr.topic
Macroeconomics and Economic Growth :: Investment and Investment Climate
okr.unit
EFI-FCI-TIC-Invest&Compet. (ETICI)

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