Informality and Self-employment
Previous work...Informality in China andWestern BalkansUnlocking potential in WestAfrica, Vietnam and PeruIdentifying smal...
Self-employment andentrepreneurship
ObjectivesProfiling of the self-employed &constraints assessment toolInventory of programsReview of impact evaluationsBlue...
Profiling
UNSUCCESSFUL ENTREPRENEURSAllEast AsiaEastern EuropeLatin AmericaMiddle East and North AfricaSouth AsiaSS Africa0 22.5 45 ...
CONSTRAINTSSKILLS (T, C, NC)INFORMATIONBARRIERSTO ENTRYFINANCINGBUSINESS ENV.
CONSTRAINTS ANDPROGRAMSSKILLS (T, C, NC)INFORMATIONBARRIERSTO ENTRYFINANCINGBUSINESS ENV.Training (technical, business K, ...
ROLE OFTHE PROGRAMS• Facilitate "entrance"• Increase the productivity ofcurrent, economically viable,activities • Facilita...
Inventory
Two ModulesInventory of GlobalProgramsInventory of Programs withImpact EvaluationsNGOsInternational organizations
Types of programsTrainingMentoringNetworkingFinanceValue chains0 20 40 60 80
TrainingFinanceBusiness knowledgeLife skillsManagementICT0 17.5 35 52.5 70
Target groupCurrent entrepreneurPotentialLow-end entrepreneurHigh impact entrepreneur0 17.5 35 52.5 70
ILO Improve Your Business (SIYB)
Junior Achievement
Techno Serve (value chains)
IDA - IBRD projects
Value chains
Very large variation in termsof design...Selection of beneficiariesRegionTypes of interventionsContent of trainingDelivery...
Impact Evaluations
38 STUDIES• Focus on current or potential "entrepreneurs"• Rigorous experimental or quazi experimental evaluations(control...
PROGRAMS• TRAINING: technical, life skills, business & financialmanagement• FINANCE: credit, grants, savings, insurance• TR...
DISTRIBUTION OF PROGRAMSSAR27%LAC27%ECA6%MENA5%SSA24%EAP11%
OUTCOMESEMPLOYMENTEARNINGSBUSINESS PRACTICEBUSINESS PERFORMANCEFINANCIAL KNOWLEDGEATTITUDESPositiveImpactSizeeffect
CONTROLSPOPULATIONGROUPSSERVICEDELIVERYCONTEXTGovernment, NGO, University, MFIFemale, youth, safety nets beneficiary,MFI cl...
AVERAGE SIZE EFFECTSEmploymentEarningsBusiness KBusiness practiceFinancial KAttitudes0 0.075 0.15 0.225 0.3Training Financ...
T-statistic-6.00-1.503.007.5012.00Diferencia entre grupo de tratamiento y control (puntos porcentuales)-0.450 -0.225 0.000...
DETERMINANTS OFCHANGES IN EMPLOYMENTTraining onlyFinance onlyYouthBusiness ownerUrban# MonthsExperimental-0.3 -0.225 -0.15...
TAKE AWAYS• Programs are important• Results have been mixed• Need to better understandthe constraints ("gazelles" vssubsis...
Multi-Donor Trust Fund on Labor Markets, Job Creation and Economic Growth: Informality and Self-Employment
Multi-Donor Trust Fund on Labor Markets, Job Creation and Economic Growth: Informality and Self-Employment
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Multi-Donor Trust Fund on Labor Markets, Job Creation and Economic Growth: Informality and Self-Employment

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Multi-Donor Trust Fund on Labor Markets, Job Creation and Economic Growth: Informality and Self-Employment

  1. 1. Informality and Self-employment
  2. 2. Previous work...Informality in China andWestern BalkansUnlocking potential in WestAfrica, Vietnam and PeruIdentifying small business withgrowth potential in GhanaHigh informality (> 60% dont have social insurance)More stringent labor regulations did not change thingsNeed to reduce SS contributions for low-skilledThere are small gazelles that operate with little capitalNeed to identify them and provide financingOther constraints are corruption, infrastructure, skills &lack of voiceAre there tools that can be used to identify gazelles?Usually, this is done through groups of expertsBut a survey was able to also identify the best...... and predict growth potentialPilots in Ghana, Nigeria,Rwanda, and Uganda
  3. 3. Self-employment andentrepreneurship
  4. 4. ObjectivesProfiling of the self-employed &constraints assessment toolInventory of programsReview of impact evaluationsBlue prints to guide the design ofpilots and evaluationsCompletedDraft tool underpreparationReport underpreparationIn progress
  5. 5. Profiling
  6. 6. UNSUCCESSFUL ENTREPRENEURSAllEast AsiaEastern EuropeLatin AmericaMiddle East and North AfricaSouth AsiaSS Africa0 22.5 45 67.5Non-Agr Agriculture
  7. 7. CONSTRAINTSSKILLS (T, C, NC)INFORMATIONBARRIERSTO ENTRYFINANCINGBUSINESS ENV.
  8. 8. CONSTRAINTS ANDPROGRAMSSKILLS (T, C, NC)INFORMATIONBARRIERSTO ENTRYFINANCINGBUSINESS ENV.Training (technical, business K, life skills)Advisory services / networkingCredit, grants, insuranceIntegration into value chainsChanges in regulations / infrastructure
  9. 9. ROLE OFTHE PROGRAMS• Facilitate "entrance"• Increase the productivity ofcurrent, economically viable,activities • Facilitate transitions fromlow to high productivityactivities
  10. 10. Inventory
  11. 11. Two ModulesInventory of GlobalProgramsInventory of Programs withImpact EvaluationsNGOsInternational organizations
  12. 12. Types of programsTrainingMentoringNetworkingFinanceValue chains0 20 40 60 80
  13. 13. TrainingFinanceBusiness knowledgeLife skillsManagementICT0 17.5 35 52.5 70
  14. 14. Target groupCurrent entrepreneurPotentialLow-end entrepreneurHigh impact entrepreneur0 17.5 35 52.5 70
  15. 15. ILO Improve Your Business (SIYB)
  16. 16. Junior Achievement
  17. 17. Techno Serve (value chains)
  18. 18. IDA - IBRD projects
  19. 19. Value chains
  20. 20. Very large variation in termsof design...Selection of beneficiariesRegionTypes of interventionsContent of trainingDeliveryDurationCosts... and we do not know what works
  21. 21. Impact Evaluations
  22. 22. 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 developingcountries• Results in public domain (published by March 2012)
  23. 23. PROGRAMS• TRAINING: technical, life skills, business & financialmanagement• FINANCE: credit, grants, savings, insurance• TRAINING + FINANCE
  24. 24. DISTRIBUTION OF PROGRAMSSAR27%LAC27%ECA6%MENA5%SSA24%EAP11%
  25. 25. OUTCOMESEMPLOYMENTEARNINGSBUSINESS PRACTICEBUSINESS PERFORMANCEFINANCIAL KNOWLEDGEATTITUDESPositiveImpactSizeeffect
  26. 26. CONTROLSPOPULATIONGROUPSSERVICEDELIVERYCONTEXTGovernment, NGO, University, MFIFemale, youth, safety nets beneficiary,MFI client, business ownerRegion, income, labor market conditions, business environment
  27. 27. AVERAGE SIZE EFFECTSEmploymentEarningsBusiness KBusiness practiceFinancial KAttitudes0 0.075 0.15 0.225 0.3Training Finance Both
  28. 28. T-statistic-6.00-1.503.007.5012.00Diferencia entre grupo de tratamiento y control (puntos porcentuales)-0.450 -0.225 0.000 0.225 0.450 0.675 0.900Positive and Statistically Significative
  29. 29. DETERMINANTS OFCHANGES IN EMPLOYMENTTraining onlyFinance onlyYouthBusiness ownerUrban# MonthsExperimental-0.3 -0.225 -0.15 -0.075 0 0.075 0.15
  30. 30. TAKE AWAYS• Programs are important• Results have been mixed• Need to better understandthe constraints ("gazelles" vssubsistence entrepreneurs)• Target integrated services• Pilot and evaluate

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