scholarly journals EVALUATING THE IMPACT OF INFORMAL SECTOR COMPETITORS ON THE PERFORMANCE OF FORMAL ENTERPRISES: EVIDENCE FROM BOSNIA AND HERZEGOVINA

2020 ◽  
Vol 25 (02) ◽  
pp. 2050014
Author(s):  
COLIN C. WILLIAMS ◽  
BRUNILDA KOSTA
Keyword(s):  
World Bank ◽  
Bosnia And Herzegovina ◽  
Informal Sector ◽  
Employment Growth ◽  
Policy Implications ◽  
Sales Growth ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
The Impact ◽  
Do So

It is widely assumed that informal sector enterprises have a harmful impact on the performance of formal enterprises. This paper aims to provide an evidence-based evaluation of whether this is the case. To do so, it reports World Bank Enterprise Survey (WBES) data collected from 360 formal enterprises in Bosnia and Herzegovina in 2019. The finding is that formal enterprises viewing informal competition as a severe obstacle do not witness significantly lower sales growth, employment growth or productivity growth. Indeed, such enterprises witness significantly higher sales growth than those who do not view informal sector competitors as a severe obstacle. The theoretical and policy implications are discussed.

scholarly journals EVALUATING THE EFFECTS OF THE INFORMAL SECTOR ON THE GROWTH OF FORMAL SECTOR ENTERPRISES: LESSONS FROM ITALY

2020 ◽  
Vol 25 (03) ◽  
pp. 2050019
Author(s):  
BRUNILDA KOSTA ◽  
COLIN C WILLIAMS
Keyword(s):  
World Bank ◽  
Informal Sector ◽  
Productivity Growth ◽  
Policy Implications ◽  
Future Research ◽  
Sales Growth ◽  
Formal Sector ◽  
Annual Productivity ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

This paper evaluates the effect of unregistered and informal sector business ventures on the growth of formal sector enterprises. The hypotheses tested is that formal sector enterprises that have to compete against unregistered or informal sector business ventures suffer from lower levels of performance, measured by annual sales growth, annual employment growth and annual productivity growth. To evaluate this thesis, data is reported from a World Bank Enterprise Survey (WBES) of 760 enterprises in Italy collected in 2019. The finding is that formal sector enterprises that report competing against unregistered or informal sector business ventures have significantly lower annual sales growth and annual productivity growth than enterprises that do not. The paper concludes by discussing the theoretical and policy implications, along with the limitations of the study and future research required.

scholarly journals EVALUATING THE IMPLICATIONS OF STARTING-UP UNREGISTERED ON FUTURE FIRM PERFORMANCE: EVIDENCE A 2019 SURVEY IN ALBANIA

2020 ◽  
Vol 25 (02) ◽  
pp. 2050010
Author(s):  
COLIN C. WILLIAMS ◽  
BRUNILDA KOSTA
Keyword(s):  
Firm Performance ◽  
World Bank ◽  
Informal Sector ◽  
Sales Growth ◽  
Widespread Belief ◽  
Informal Entrepreneurship ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
Start Ups ◽  
The Relationship

This paper evaluates critically the relationship between starting-up unregistered and firm performance. The widespread belief across all the dominant theories of informal entrepreneurship is that unregistered start-ups experience poorer future firm performance than those registered from the outset of their operations. To evaluate this poorer performance thesis, this paper reports World Bank Enterprise Survey (WBES) data on 377 enterprises in Albania collected in 2019. After controlling for other determinants of firm performance, the finding is that formal enterprises that started-up unregistered have significantly higher annual sales growth than enterprises that registered from the outset. To explain this, the argument is that in weak institutional environments, such as Albania, the advantages of operating unregistered at the outset outweigh the benefits of registration. The result is a call to re-theorize firm performance in the informal sector and for policy to shift toward a more facilitating approach that enhances benefits of registration.

scholarly journals Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise Survey

2012 ◽  
Vol 7 (1) ◽  
pp. 99-110 ◽  
Author(s):  
John Hudson ◽  
Colin Williams ◽  
Marta Orviska ◽  
Sara Nadin
Keyword(s):  
World Bank ◽  
Informal Economy ◽  
Employment Relations ◽  
East Europe ◽  
South East Europe ◽  
Adverse Impacts ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
The Impact ◽  
Targeted Approach

Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise SurveyThe aim of this paper is to evaluate the variable impacts of the informal economy on businesses and employment relations in South East Europe. Evidence is reported from the 2009 World Bank Enterprise Survey which interviewed 4,720 businesses located in South East Europe. The finding is not only that a large informal sector reduces wage levels but also that there are significant spatial variations in the adverse impacts of the informal economy across this European region. Small, rural and domestic businesses producing for the home market and the transport, construction, garment and wholesale sectors are most likely to be adversely affected by the informal economy. The paper concludes by calling for similar research in other global regions and for a more targeted approach towards tackling the informal economy.

EVALUATING THE IMPACTS OF STARTING UP UNREGISTERED ON FIRM PERFORMANCE IN AFRICA

2017 ◽  
Vol 22 (03) ◽  
pp. 1750017 ◽  
Author(s):  
COLIN C. WILLIAMS ◽  
ABBI M. KEDIR
Keyword(s):  
Firm Performance ◽  
World Bank ◽  
Productivity Growth ◽  
Informal Economy ◽  
Poor Performance ◽  
Policy Implications ◽  
African Countries ◽  
Formal Economy ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

The aim of this paper is to contribute to an understanding of the entrepreneurship process in Africa by evaluating the link between starting up unregistered and future firm performance. The widespread assumption has been that firms starting up unregistered in the informal economy suffer from poor performance compared to those starting up registered and in the formal economy. To test this poorer performance thesis, World Bank Enterprise Survey (WBES) data is evaluated from across 41 African countries covering the period from 2006 to 2013. Controlling for a comprehensive set of other determinants of firm performance, the finding is that formal enterprises with five or more employees that started up unregistered have significantly higher annual sales, employment and productivity growth rates compared with those firms that registered their operations at startup. The paper concludes by discussing the theoretical and policy implications of this finding.

scholarly journals Employment Growth of Small, Medium, and Large Firms: Evidence from Zambia

2019 ◽  
Vol 11 (3) ◽  
pp. 1
Author(s):  
Yordanos Gebremeskel
Keyword(s):  
World Bank ◽  
Employment Growth ◽  
Strong Relationship ◽  
Full Time ◽  
Large Firms ◽  
The World Bank ◽  
Manufacturing Sectors ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
The Relationship

We have used the World Bank Enterprise Survey data and examined the relationship between size, age and employment growth of 720 small, medium and large firms from four cities in Zambia. These firms have between 1-2010 full-time employees and operate in services, retail, and manufacturing sectors. The employment growth is defined as a difference in logarithm of full-time employees between two years and divided by the age of the firm. Our estimation shows that there is a strong relationship between employment growth, size, and age of firms. We find that younger firms but not smaller size are more important in creating employment growth.

Determinants of Islamic banking growth: an empirical analysis

2018 ◽  
Vol 11 (1) ◽  
pp. 18-39 ◽  
Author(s):  
Tamsir Cham
Keyword(s):  
World Bank ◽  
Time Series Data ◽  
Empirical Work ◽  
Series Data ◽  
Islamic Banking ◽  
Content Type ◽  
Positive Effects ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
The Impact

Purpose This paper aims to examine the determinants of growth rate in Islamic banking using annual time series data. Design/methodology/approach The author applied several econometrics methods including generalized linear model and survey-based indicators. The author uses the World Bank Enterprise Survey data to supplement the answers. Findings The results support the view that high oil prices, stable domestic prices, higher educated populace and greater presence of capital resources have positive effects on growth in Islamic banking. The findings, however, revealed that instability adversely affects Islamic banking growth. The author found no clear conclusion on the impact of economic growth, greater presence of Muslim population and presence of sharia in the legal system of the country on growth in Islamic banking. The major constraints impeding Islamic banking growth include regulations, tax rates and skilled labor force. Originality/value There is no empirical work that has been done on the determinants of Islamic banking growth by taking into account the following factors: oil price dynamics, sharia compliant, macroeconomic variables, instability and World Bank Enterprise survey. This paper attempts to search for the push and pull factors of Islamic banking growth to fill the gap in determining the Islamic banking growth.

scholarly journals Evaluating competing theories of informal sector entrepreneurship

2018 ◽  
Vol 19 (3) ◽  
pp. 155-165 ◽  
Author(s):  
Colin C Williams ◽  
Abbi Kedir
Keyword(s):  
Political Economy ◽  
Informal Sector ◽  
State Intervention ◽  
Policy Implications ◽  
Probit Regression ◽  
Formal Institutions ◽  
Shared Beliefs ◽  
Cross Country ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

To advance understanding of the reasons for informal sector entrepreneurship, this article evaluates the determinants of cross-country variations in the extent to which enterprises are unregistered when they start operating. Reporting the World Bank Enterprise Survey data on 67,515 enterprises across 142 countries, the finding is that one in five (19.9%) of the formal enterprises surveyed started-up unregistered, although this varies from all enterprises surveyed in some countries (e.g. Pakistan) to 1% of surveyed enterprises in Slovakia. To explain these cross-country variations, four competing theories are evaluated which variously assert that nonregistration is determined by either: economic under-development and poorer quality governance (modernization theory); too much state interference (neoliberal theory); too little state intervention (political economy theory); or an incongruence between the laws and rules of formal institutions and the beliefs, values, and norms of informal institutions (institutional theory). A multilevel probit regression analysis confirms the modernization, political economy, and institutional theories but not neoliberal theory. Beyond economic under-development, therefore, nonregistration is associated with too little state intervention and the rules of formal institutions being incongruent with the socially shared beliefs of entrepreneurs. The article concludes by discussing the theoretical and policy implications of these findings.

scholarly journals BUSINESS REGISTRATION AND FIRM PERFORMANCE: SOME LESSONS FROM INDIA

2016 ◽  
Vol 21 (03) ◽  
pp. 1650016 ◽  
Author(s):  
COLIN C WILLIAMS ◽  
ABBI M. KEDIR
Keyword(s):  
Firm Performance ◽  
World Bank ◽  
Institutional Environment ◽  
Policy Implications ◽  
Performance Reporting ◽  
Start Up ◽  
Tentative Explanation ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
Productivity Gains

The aim of this paper is to evaluate the impacts on future firm performance of a firm deciding to register from the outset of its operations. Until now, the assumption has been that starting up registered is linked to higher future firm performance. Reporting World Bank Enterprise Survey (WBES) data collected in 2014 on 9,281 formal enterprises in India, and controlling for other determinants of firm performance as well as the endogeneity of the registration decision, the finding is that formal enterprises that start up unregistered and spend longer unregistered have significantly higher subsequent annual sales and employment growth rates compared with those registered from the outset. When the number of years spent unregistered is included, there are also productivity gains from delaying registration. The tentative explanation is that in this weak institutional environment, the advantages of registering from the outset are outweighed by the benefits of deferring registration. Evaluating the policy implications, the argument is that there is a need to shift away from the conventional eradication approach toward unregistered startups based on the assumption they are unproductive, and toward a more facilitating approach that improves the benefits of being registered and tackles the systemic formal institutional deficiencies that lead entrepreneurs to delay their decision to register.

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