2. Previous work...
Informality in China and
Western Balkans
Unlocking potential in West
Africa, Vietnam and Peru
Identifying small business with
growth potential in Ghana
High informality (> 60% don't have social insurance)
More stringent labor regulations did not change things
Need to reduce SS contributions for low-skilled
There are small gazelles that operate with little capital
Need to identify them and provide financing
Other constraints are corruption, infrastructure, skills &
lack of voice
Are there tools that can be used to identify gazelles?
Usually, this is done through groups of experts
But a survey was able to also identify the best...
... and predict growth potential
Pilots in Ghana, Nigeria,
Rwanda, and Uganda
4. Objectives
Profiling of the self-employed &
constraints assessment tool
Inventory of programs
Review of impact evaluations
Blue prints to guide the design of
pilots and evaluations
Completed
Draft tool under
preparation
Report under
preparation
In progress
9. CONSTRAINTS AND
PROGRAMS
SKILLS (T, C, NC)
INFORMATION
BARRIERSTO ENTRY
FINANCING
BUSINESS ENV.
Training (technical, business K, life skills)
Advisory services / networking
Credit, grants, insurance
Integration into value chains
Changes in regulations / infrastructure
10. ROLE OFTHE PROGRAMS
• Facilitate "entrance"
• Increase the productivity of
current, economically viable,
activities
• Facilitate transitions from
low to high productivity
activities
22. Very large variation in terms
of design...
Selection of beneficiaries
Region
Types of interventions
Content of training
Delivery
Duration
Costs
... and we do not know what works
24. 38 STUDIES
• Focus on current or potential "entrepreneurs"
• Rigorous experimental or quazi experimental evaluations
(control vs. treatment groups)
• Evaluations conducted over the last10 years in developing
countries
• Results in public domain (published by March 2012)
25. PROGRAMS
• TRAINING: technical, life skills, business & financial
management
• FINANCE: credit, grants, savings, insurance
• TRAINING + FINANCE
31. DETERMINANTS OF
CHANGES IN EMPLOYMENT
Training only
Finance only
Youth
Business owner
Urban
# Months
Experimental
-0.3 -0.225 -0.15 -0.075 0 0.075 0.15
32. TAKE AWAYS
• Programs are important
• Results have been mixed
• Need to better understand
the constraints ("gazelles" vs
subsistence entrepreneurs)
• Target integrated services
• Pilot and evaluate