How Much Does Utility Access Matter for the Performance of Micro and Small Enterprises?
The empirical evidence of the economic benefits of different utilities such as electricity, telecommunications and water is mixed and, in the case of micro and small enterprises, relatively thin. This paper therefore revisits this issue. Based on a...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/612651468139487717/How-much-does-utility-access-matter-for-the-performance-of-micro-and-small-enterprises http://hdl.handle.net/10986/26782 |
| Summary: | The empirical evidence of the economic
benefits of different utilities such as electricity,
telecommunications and water is mixed and, in the case of
micro and small enterprises, relatively thin. This paper
therefore revisits this issue. Based on a unique, albeit
cross-sectional, micro data set of informal firms in
West-Africa, we find hardly any evidence for a significant
contribution of access to different infrastructure services
on enterprise performance. This absence of a systematic
influence is attributed to the large heterogeneity of
activities, motives and resources with which these informal
firms operate. However, concentrating on a more homogenous
sample of tailors in Ouagadougou, we find that their
performance is positively influenced by access to
electricity. In conclusion, our findings stress the
heterogeneity of the informal sector, implying that a
'one-size-fits all' approach to the development of
this sector is of little help. |
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