Entry Regulation and Formalization of Microenterprises in Developing Countries

Bruhn, Miriam ; McKenzie, David

World Bank, Washington, DC

关键词: ACCOUNT;    ACCOUNTING;    ACCOUNTING SERVICES;    BUSINESS ENTRY;    BUSINESS FACILITATION;   

DOI  :  10.1596/1813-9450-6507
RP-ID  :  WPS6507

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The majority of microenterprises in mostdeveloping countries remain informal despite more than adecade of reforms aimed at making it easier and cheaper forthem to formalize. This paper summarizes the evidence on theeffects of entry reforms and related policy actions topromote firm formalization. Most of these policies resultonly in a modest increase in the number of formal firms, ifat all. Less is known about the impact of other forms ofbusiness regulations on the performance of low-scaleenterprises. Most informal firms appear not to benefit onnet from formalizing, so ease of formalization alone willnot lead to most of them formalizing. Increased enforcementof rules can increase formality. Although there is a fiscalbenefit of doing this with larger informal firms, it isunclear whether there is a public rationale for trying toformalize subsistence enterprises.