How to Encourage Enterprise Formalization : Some Practical Hints for Policymakers in Africa
This policy note takes as its starting point the common view that there are benefits and costs to formal status and that formalization will occur only if entrepreneurs perceive it to be in their self-interest. No doubt part of the answer lies in re...
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| Language: | English en_US |
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Washington, DC : World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/409121468203048558/How-to-encourage-enterprise-formalization-some-practical-hints-for-policymakers-in-Africa http://hdl.handle.net/10986/37377 |
| Summary: | This policy note takes as its starting
point the common view that there are benefits and costs to
formal status and that formalization will occur only if
entrepreneurs perceive it to be in their self-interest. No
doubt part of the answer lies in reducing the costs and time
required for compliance -- as the World Bank's Doing
Business project has documented. But lowering barriers to
entry is unlikely to be sufficient. Encouraging
formalization requires us to understand the relationship
between state and private business as a bargain. And it also
challenges policy-makers and development practitioners to
think not only about technical solutions but also about
institutional mechanisms for improving relations between
entrepreneurs and the state. |
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