ENTERPRISE SURVEYS
WHAT BUSINESSES EXPERIENCE
ENTERPRISE SURVEYS
El Salvador 2016
Country Profile
1
Contents
Introduction......................................................................................................................................................... 3
Firms Characteristics ........................................................................................................................................... 4
Workforce............................................................................................................................................................ 5
Firm performance................................................................................................................................................ 5
Physical Infrastructure ........................................................................................................................................ 6
International Trade.............................................................................................................................................. 6
Access to Finance ................................................................................................................................................ 7
Crime and Informality ......................................................................................................................................... 8
Regulations, Permits, and Taxes ......................................................................................................................... 8
Corruption ........................................................................................................................................................... 9
Business Environment Obstacles ........................................................................................................................ 9
Appendix............................................................................................................................................................ 11
The Country Profiles produced by the Enterprise Analysis Unit of the World Bank Group provide an overview of key business environment indicators in each economy, comparing them to
their respective geographic region and group of countries with similar income levels. The same topics are covered for all countries with slight variations of indicators. All indicators are based
on the responses of firms. To learn more about the Enterprise Analysis Unit and to obtain Country Profiles for other countries, please visit www.enterprisesurveys.org
© 2014 International Bank for Reconstruction and Development / The World Bank Group
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
Internet: www.worldbank.org
This work is a product of the staff of The World Bank Group with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the
views of The World Bank Group, its Board of Executive Directors, or the governments they represent.
The World Bank Group does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do
not imply any judgment on the part of The World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries.
Rights and Permissions
The material in this work is subject to copyright. Because The World Bank Group encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for
noncommercial purposes as long as full attribution to this work is given.
Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Group Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433,
USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org.
Please cite Enterprise Surveys data as follows: Enterprise Surveys www.enterprisesurveys.org The World Bank Group.
The Enterprise Surveys team can be contacted at:
The World Bank Group
2121 Pennsylvania Avenue, NW
Washington DC, 20433 USA
Tel. (202) 479-3800
2
Economy Overview Sector coverage is defined consistently across all
economies and includes the entire manufacturing sector
El Salvador 2016 and most services sectors: retail, wholesale, automotive
Region: Latin America & Caribbean repair, hotels and restaurants, transportation, storage,
Population: 6,126,583 communications, construction, and IT. Public utilities,
GNI per capita (US $): 3,940 government services, health care, and financial services
sectors are not included in the sample (Figure 1). The ES
Income Group: Lower middle income
interview takes place with top managers and business
owners.
Introduction
The ES are repeated approximately every four years for a
The Enterprise Surveys (ES) focus on many aspects of the particular economy (or region). By tracking changes in the
business environment. These factors can be business environment, policymakers and researchers can
accommodating or constraining for firms and play an look at the effects of policy and regulatory reforms on
important role in whether an economy’s private sector firm performance. Repeated surveys aid in studying the
will thrive or not. An accommodating business evolution of the business environment and how it affects
environment is one that encourages firms to operate the dynamics of the private sector.
efficiently. Such conditions strengthen incentives for
firms to innovate and to increase productivity — key This document summarizes the results of the Enterprise
factors for sustainable development. A more productive Survey for El Salvador. Business owners and top managers
private sector, in turn, expands employment and in 719 firms were interviewed March 2016 to August
contributes taxes necessary for public investment in 2016. Figure 2 provides a description of the sample
health, education, and other services. Questions breakdown across the three survey design categories:
contained in the ES aim at covering most of the topics business sector, firm size, and location.
mentioned above. The topics include infrastructure,
trade, finance, regulations, taxes and business licensing,
corruption, crime and informality, access to finance, Figure 1: Sectors of the economy covered by the
innovation, labor, and perceptions about obstacles to Enterprise Surveys
doing business. Excluded Included
SECTORS SECTORS
The ES are conducted by the World Bank Group and its Agriculture Manufacturing (all subsectors)
partners across all geographic regions and cover small, Fishing Construction
medium, and large firms. The size of the firm is Mining Motor vehicles sales and
determined by the number of employees: 5 to 19 (small), Public utilities repair
Financial intermediation Wholesale
20 to 99 (medium), and 100 or more (large). Firms with Public administration Retail
less than five employees are ineligible for the survey. Education, health and social Hotels and restaurants
Firms that are 100% state-owned are also ineligible. work Storage, transportation, and
Partners for the ES have included the European Bank for communications
Reconstruction and Development (EBRD), the European IT
Investment Bank (EID), and the UK's Department for ADDITIONAL CRITERIA ADDITIONAL CRITERIA
International Development (DFID). < 5 employees 5+ employees
Informal firms Formal (registered) firms
100% state-owned firms Minimum of 1% private
The surveys are administered to a representative sample1 ownership
of firms in the non-agricultural, formal, private economy.
3
Figure 2: Characteristics of firms surveyed
Sector
120
170
Food [120] Textiles & Garments [113] Furniture [62]
113
Other Manufacturing [110] Retail [144] Other Services [170]
144
62
110
Size
153
372 Small (5-19) [372] Medium (20-99) [194] Large (100+) [153]
194
Location
114
326
133 San Salvador [326] West [146] Greater San Salvador [133] East [114]
146
Firms Characteristics Figure 3: Age distribution of firms (percent of firms)
40
35
In addition to collecting information on the business
environment and firm performance, the ES also collect
30
information on characteristics of private firms. Figure 3 24
% of Firms
shows the distribution of firms in the private sector
according to their age, measured by the number of years 20 17
they have been in operation. The effect of the business 12
environment on firm performance may depend on firms’ 10
5
experience and longevity. Also, older firms and young 4 4
firms may differ in their ability to successfully navigate the
0
business environment. 0-10 11-20 21-30 31-40 41-50 51-60 60+
Firm Age (Years)
4
Figure 4 exhibits the percentage of female participation in The incidence of training is measured by the percent of
employment, in top management and in firm ownership, firms that offer formal training and the intensity of
compared to the equivalent percentages for the region training is measured by the share of workers receiving
and for economies with similar income levels. Female training in the manufacturing sector.
inclusion in economic activity is necessary for promoting
shared prosperity, one of the twin development goals of Figure 6: Within firms offering training, proportion of
the World Bank Group. workers trained*
70 68
Figure 4: Female participation in employment, top
management and ownership 65 63
60
% of Firms
45
38 60
40 35 35
35 33
28 55
30 25
Percentage
24 El Salvador2016 Latin America & Lower middle
25 Caribbean income
20 16 15 * only for manufacturing firms
15
10
5
Firm performance
0
% of employees % of firms w/ a % of firms w/ If an economy’s business environment is supportive and
that are female female top female competitive, resources are often channeled to the most
manager participation in productive uses and firms invest to further increase their
ownership productivity. Using the responses to questions on annual
El Salvador2016 Latin America & Caribbean sales and the total number of permanent full-time
Lower middle income
employees, both in the last fiscal year and three fiscal
years earlier, growth measures can be computed for each
Workforce firm. Figure 7 displays the resulting annual growth rate in
employment and in real sales. By looking at business
The ES collect workforce information such as the number environment measures in conjunction with available
of permanent full-time employees, the number of performance measures, policymakers can determine
temporary employees, employees by gender, whether which aspects of the business environment may be
formal training is offered, and the top manager’s impeding or enabling the growth of the private sector.
experience working in the firm’s sector. In addition, for
manufacturing firms, the ES also collects the breakdown Figure 7: Annual employment and sales growth
of the workforce between production and non- 5 4.5
production workers and between skilled and unskilled 4 3.3 3.1 3.0
production workers. Figures 5 and 6 highlight firms’ 3
investment in the skills and capabilities of their 1.5
2
workforce.
% Annual
1
Figure 5: Percent of firms offering formal training 0
60 54 54 -1 Annual employment growth Real annual sales growth (%)
50 (%)
-2
40
30 25 -3
% of Firms
-2.8
20 -4
10 El Salvador2016 Latin America & Caribbean
0 Lower middle income
El Salvador2016 Latin America & Lower middle
Caribbean income
5
Physical Infrastructure Figure 9: Days to obtain an electrical connection
40 35
A well-developed physical infrastructure, including roads, 30 24 25
electricity, water and telecommunications, is central to
Days
20
competitiveness and growth of an economy. Quality
infrastructure efficiently connects firms to markets for 10
inputs, products, and technologies. It reduces the cost of 0
production and enhances the competitiveness of firms in El Salvador2016 Latin America & Lower middle
domestic and international markets. Caribbean income
For many industries in the manufacturing sector water is
The ES capture the dual challenge of providing a strong also an important input in the manufacturing process.
infrastructure for electricity, water supply and Figure 10 presents the average number of water
telecommunications in addition to information on the insufficiencies in a typical month experienced by firms in
development of institutions that effectively provide and the manufacturing sector. Interruptions in water
maintain these public services. provision can have serious harmful effects on firms’
operations.
Efficiency in the operation of the private sector requires a
reliable supply of electricity. Figure 8 shows the extent to Figure 10: Reliability of water supply*
which firms face failures in the provision of electricity and 5.5 4.9
5.0
No. of Insufficiencies
their effect on sales as measured by the losses they 4.5
generate. Inadequate electricity provision supply can 4.0
3.5
increase costs, disrupt production, and reduce 3.0
2.5
profitability. 2.0
1.5 0.8
1.0 0.5
0.5
Figure 8: Reliability of electricity supply and related 0.0
losses El Salvador2016 Latin America & Lower middle
Caribbean income
2.5 9.0 10
2.1 * only for manufacturing firms
2.0 8
1.5 6 International Trade
No. of Power Outages
1.1
% Sales
1.0 4
0.5 1.9 Participation in international trade allows firms to
0.5 1.2 2
expand, raise standards for efficiency, import materials at
0.0 0 lower cost, and acquire updated and better technologies.
% losses due to No. of power outages However, trading also requires that firms deal with
power outages customs and trade regulations, and often firms are also
El Salvador2016 Latin America & Caribbean required to obtain export and import licenses.
Lower middle income
The ES quantify the trade activity of firms and collects
Figure 9 displays the efficiency of infrastructure services information on the operational constraints faced when
by quantifying the number of days it takes to obtain an exporting and importing. Figure 11 provides a measure of
electricity connection. Service delays impose additional the intensity of foreign trade in the private sector,
costs on firms and may act as barriers to entry and captured by percentage of firms’ exporting (either
investment directly or indirectly) and also the percentage of
manufacturing firms using inputs or supplies of foreign
origin.
6
Figure 11: Percentage of exporting and importing firms Figure 13 compares the various sources used to finance
80 purchases of fixed assets (investments). Investment
68 66
purchases can be financed by internal sources, banks,
60 inputs’ supplier credit, or other sources, including non-
% of Firms
36 bank financial institutions or personal networks.
40
Excessive reliance on internal funds may indicate
17 14 potentially inefficient financial intermediation.
20 12
0 Figure 14 displays two indicators of the use of financial
% exporting directly or % using inputs of foreign
services by private firms: the percentage of firms with a
indirectly origin(manufacturing firms
only) checking or savings account and the percentage of firms
El Salvador2016 Latin America & Caribbean with a bank loan. The former indicator measures the use
Lower middle income of deposit mobilization services which helps firms to
manage their liquidity and payments. The second
Efficient customs procedures enable businesses to indicator measures the use of financial services on the
directly export and import goods. Figure 12 displays the credit side. Availability of credit permits funding projects
average number of days to clear customs for exports and that otherwise would be constrained by each firm’s
imports. Delays in clearing customs for exports and limited pool of funds.
imports create additional costs to the firm, can interrupt Figure 13: Sources of financing for purchases of fixed
production, interfere with sales, and may result in assets
damaged supplies or merchandise.
Figure 12: Average days to clear exports and imports El Salvador2016 20 0 11 62 6
through customs
20 18
16
15 Latin America & Caribbean 18 5 11 59 7
% of Firms
9 9
10
6
5 3 Lower middle income 15 6 3 71 6
0
Exports at customs Imports at customs 0 20 40 60 80 100
El Salvador2016 Latin America & Caribbean % of investment
Financed by banks Financed by equity
Lower middle income
Financed by supplier credit Financed internally
Other
Access to Finance
Figure 14: Use of financial services
Well-developed financial markets provide payment 100 94 97
services, mobilize deposits, and facilitate funding for the 79 79
80
purchase of fixed assets – such as buildings, land, 61
% of Firms
60
machinery, and equipment – as well as working capital.
Efficient financial markets reduce the reliance on internal 40 30
funds or informal sources such as family and friends by 20
connecting firms that are creditworthy to a broad range 0
of lenders and investors. Small (5-19) Medium (20-99) Large (100+)
The ES provide indicators on the sources of firms financing With checking/savings account With bank loan
and on the characteristics of their financial transactions.
7
Crime and Informality Figure 16: Firms and informality
100 88
83 83
Firms can become the target of theft, robbery, vandalism,
80 68
or arson. Protecting themselves against crime imposes 66
% of Firms
costs as firms are forced to divert resources from 60 52
productive uses to cover security costs. Moreover, both
40
foreign and domestic investors perceive crime as an
indication of social instability, and crime drives up the cost 20
of doing business.
0
Compete with informal Registered when started
Figure 15 displays the direct costs of security incurred by firms operations
firms as well as their losses due to crime. These resources El Salvador2016 Latin America & Caribbean
represent the opportunity cost of crime since they could Lower middle income
have been invested in productive activities.
Figure 15: Firms’ cost of crime
Regulations, Permits, and Taxes
4 Good economic governance in areas such as regulations,
3.2 business licensing, and taxation is a fundamental pillar of
3
a favorable business environment. Registered firms pay
% of Firms
2 taxes and are supposed to comply with regulations.
1.3 1.3
0.8 0.9
1 0.3 Figure 17: Time tax and meetings with tax officials
0 16 15.0 1.8
1.5
Security costs Losses due to theft 1.6
14
11.2 1.4
No. of Meetings
12
El Salvador2016 Latin America & Caribbean 1.0 1.2
Lower middle income 10 0.9 1.0
% of Time
8 0.8
6 4.0 0.6
When firms are formally registered, they are required to 4 0.4
abide by rules and regulations, which are commonly set 2 0.2
by governments. Paying taxes is usually the most tangible 0 0.0
consequence of becoming part of the formal private Senior mgmt time w/ No. of tax meetings in a
sector. Some firms try to avoid these consequences by govt regulations year
not registering their business and thereby remaining in
El Salvador2016 Latin America & Caribbean
the informal sector. A large informal sector may represent Lower middle income
a challenge to competing formal firms as informal firms
Permits and licenses are usually required for business to
are able to engage in practices that can give an unfair
operate, build a new structure, and to import directly,
advantage over formal firms that must comply with the
among other activities. Ideally, these regulations and
prevailing rules and regulations.
permits safeguard the general public’s interest while
remaining transparent and not imposing heavy burdens
Figure 16 provides two measures of the incidence of
on the private sector.
informality in the private sector. The first indicator is the
percentage of firms that indicate that they face
The ES provide quantitative measures of regulations such
competition from unregistered or informal firms. The
as business licensing and taxation. Figure 17 illustrates
second indicator is the percentage of currently registered
the “time tax” imposed by regulations, which is the
firms that started operations being formally registered.
percentage of time spent by senior management dealing
with regulatory compliance. Figure 17 also presents the
number of required meetings with tax officials in a year.
8
Figure 18 focuses on the efficiency of business licensing The ES capture individual transactions where bribes may
and permit services. The indicators measure the time be solicited. Figure 20 displays the extent to which firms
required to obtain an import license, a construction are requested to pay a bribe in order to receive selected
permit, and an operating license. Delays in obtaining public services. Businesses may be asked to pay bribes
licenses can be costly to entrepreneurs as they add when they request a construction permit, while trying to
uncertainty and additional costs to much needed business secure a government contract, or during meetings with
transactions. tax officials. These three types of transactions are
common instances where opportunities for bribery occur.
Figure 18: Number of days to obtain permits
120 Figure 19: Bribery Incidence (percent of firms
98 experiencing at least one bribe payment request)
100
30
80 69 24
54
% of Firms
60 20
Days
40 33 31 10
27 22
18 10
20 11 4
0 0
Import license Construction Operating license El Salvador2016 Latin America & Lower middle
permit Caribbean income
El Salvador2016 Latin America & Caribbean
Lower middle income Figure 20: Percentage of firms requested or expected
Complying with regulations is costly for businesses. to give gifts or informal payments
Excessive or inefficient regulations can discourage private 50
sector activity and foreign direct investment. 39
40 35
28
Corruption 30
% of Firms
18
20 15
12
Corruption by public officials can be a major 9
6
10
administrative and financial burden on firms. Corruption 1
creates an unfavorable business environment by 0
undermining operational efficiency and raising the costs For construction For govt contract In mtgs w/ tax
permit officials
and risks associated with running a private firm.
El Salvador2016 Latin America & Caribbean
Inefficient regulations constrain firms’ operations as they Lower middle income
present opportunities for soliciting bribes, where firms
are required to make “unofficial” payments to public
officials to get things done. In many economies bribes are
Business Environment Obstacles
common and quite high and they add to the bureaucratic
Most indicators in the ES are derived from survey
costs in obtaining required permits and licenses. They can
questions that ask businesses for their actual experiences
be a serious impediment for firms’ growth and
dealing with the business environment. For example,
development.
“How many days did it take to get a permit?” or “How
many hours did the power outage last?”. A small number
Figure 19 provides a composite index of corruption, the
of survey questions ask business owners or top managers
bribery incidence, that reflects the percentage of firms
for their subjective opinion regarding the importance of
experiencing at least one bribe payment request across
various business environment elements.
six different transactions including paying taxes, obtaining
permits or licenses, and obtaining utility connections. Figure 21 shows the percentage of firms that consider a
specific business environment obstacle as the most
important one. The respondent was asked to choose the
9
biggest obstacle to their business from a list of 15 perceptions of managers of medium and small firms. This
business environment obstacles. The figure presents the is related to the capacity to navigate business
top 10 ranking obstacles compared to the regional environment obstacles: larger firms may have more
averages. options to face obstacles but at the same time they are
also more visible and more exposed to failures of the
Figure 22 displays the top 10 obstacles for small, medium,
business environment.
and large firms. In many economies, the perceptions of
managers of large firms are very different from the
Figure 21: Top ten business environment constraints (percent of firms)
35 El Salvador2016
Latin America & Caribbean
30 29
25
19
% of Firms
20
17
15
10
10
5 5 4 4 4
5
1
0
Crime, theft Practices of Political Tax rates Access to Customs and Business Inadequately Corruption Electricity
and disorder the informal instability finance trade licenses and educated
sector regulations permits workforce
Figure 22: Top three business environment constraints by size (percent of firms)
Small (5-19 employees) Medium (20-99 employees) Large (100+ employees)
35 30
30 26 30
30 25 25
23 20 25
25 20 19
% of Firms
% of Firms
20
% of Firms
20 15 13
15 15 12
15
10 10 10
5 5 5
0 0 0
Crime, theft Practices of Political Crime, theft Political Access to Crime, theft Political Business
and disorder the informal instability and disorder instability finance and disorder instability licenses and
sector permits
10
Appendix
The following tables contain the values of all indicator variables used in the country profile.
Latin Lower
El Small Medium Large
America & middle
Salvador2016 firms firms firms
Caribbean income
Firm Characteristics
Age of the establishment (years) 21.7 20.4 23.7 28.3 20.4 16.6
Gender
Percent of firms with female participation in ownership 38.4 35.3 47.8 37.8 32.9 24.0
Percent of firms with a female top manager 28.0 26.5 37.7 7.7 16.1 15.4
Proportion of permanent full-time workers that are female (%) 34.7 34.8 35.2 32.5 34.9 25.2
Percentage of permanent full-time non-production workers that
37.8 38.8 34.7 39.9 40.2 20.4
are female.
Percentage of permanent full-time production workers that are
28.4 28.1 24.0 35.7 21.4 18.1
female.
Workforce
Percent of firms offering formal training 53.8 42.3 79.3 89.4 53.6 25.3
Proportion of workers offered formal training (%)* 68.3 47.2 82.2 70.0 63.2 60.3
Years of the top manager's experience working in the firm's
21.2 20.9 22.2 21.3 21.1 14.5
sector
Number of permanent full-time workers 30.5 8.7 39.7 250.6 58.6 40.3
Number of temporary workers 3.0 1.6 5.0 13.1 7.2 5.0
Number of permanent production workers* 52.5 5.2 26.2 223.5 45.5 52.3
Number of permanent non-production workers* 17.7 4.5 13.5 60.7 22.1 11.9
Number of permanent skilled production workers* 33.2 3.8 17.1 140.7 26.1 37.1
Number of permanent unskilled production workers* 11.5 1.4 9.3 43.1 17.7 14.2
Proportion of unskilled workers (out of all production workers)
24.3 18.8 31.6 29.3 38.1 28.2
(%)*
Performance
Real annual sales growth (%) 3.1 3.3 3.2 0.8 3.0 -2.8
Annual employment growth (%) 1.5 0.1 5.3 3.5 4.5 3.3
Infrastructure
Number of electrical outages in a typical month 1.2 1.1 1.5 1.5 1.9 9.0
Losses due to electrical outages (% of annual sales) 0.5 0.5 0.4 0.6 1.1 2.1
Days to obtain an electrical connection (upon application) 35.4 28.6 46.2 20.2 24.4 25.3
Number of water insufficiencies in a typical month* 4.9 6.5 4.9 1.5 0.5 0.8
Trade
Days to clear direct exports through customs 2.9 2.3 3.2 3.3 8.7 6.3
Percent of firms exporting directly or indirectly (at least 1% of
16.5 11.7 20.0 58.6 14.3 12.2
sales)
Days to clear imports from customs* 18.0 37.5 9.7 9.5 15.8 9.1
Percent of firms using material inputs and/or supplies of foreign
67.9 57.4 72.1 90.5 66.2 35.8
origin*
Finance
Percent of firms with a checking or savings account 83.6 79.2 93.5 97.2 83.3 74.9
Percent of firms with a bank loan/line of credit 40.2 29.8 60.9 79.2 46.3 25.0
Proportion of investment financed internally (%) 62.3 63.4 65.1 54.2 58.7 71.0
Proportion of investment financed by banks (%) 20.0 10.7 29.4 37.4 18.4 14.6
Proportion of investment financed by supplier credit (%) 11.3 15.5 4.9 6.5 11.1 2.9
Proportion of investment financed by equity or stock sales (%) 0.5 0.1 0.5 1.6 5.0 5.7
Crime
Security costs (% of annual sales) 3.2 3.2 3.2 2.5 1.3 1.3
Losses due to theft and vandalism against the firm (% of annual
0.8 0.6 1.2 0.7 0.9 0.3
sales)
Informality
Percent of firms competing against unregistered or informal firms 67.7 71.4 59.0 58.5 66.1 52.0
11
Latin Lower
El Small Medium Large
America & middle
Salvador2016 firms firms firms
Caribbean income
Percent of firms formally registered when they started
83.3 79.4 93.4 89.8 87.8 83.0
operations in the country
Regulations and Taxes
Senior management time spent dealing with the requirements of
11.2 9.7 15.9 12.2 15.0 4.0
government regulation (%)
Number of visits or required meetings with tax officials 0.9 0.6 1.4 1.7 1.5 1.0
Days to obtain an import license 10.6 9.0 11.2 17.2 26.6 18.2
Days to obtain a construction-related permit 98.0 39.1 179.3 110.9 69.3 33.3
Days to obtain an operating license 30.9 23.9 36.2 64.9 53.6 22.3
Corruption
Bribery incidence (percent of firms experiencing at least one
4.2 1.0 12.4 3.1 10.4 24.2
bribe payment request)
Percent of firms expected to give gifts to get a construction
9.4 0.3 26.7 5.3 12.2 35.2
permit
Percent of firms expected to give gifts to secure government
15.2 14.4 18.5 12.5 28.2 38.6
contract
Percent of firms expected to give gifts in meetings with tax
0.7 0.0 1.6 2.7 6.3 17.9
officials
Biggest Obstacle
Access to finance 5.4 3.2 13.4 0.4 13.6 11.6
Access to land 0.1 0.1 0.1 0.0 1.5 3.8
Business licenses and permits 4.3 2.7 7.2 11.8 4.8 3.4
Corruption 3.9 4.3 2.7 3.7 7.9 11.0
Courts 0.5 0.7 0.0 0.0 0.8 1.1
Crime, theft and disorder 28.6 29.9 25.8 25.5 10.5 2.9
Customs and trade regulations 4.6 5.4 2.2 4.4 2.0 3.1
Electricity 1.3 0.9 2.2 2.9 6.2 9.5
Inadequately educated workforce 3.9 3.5 3.5 11.0 8.9 4.3
Labor regulations 0.5 0.0 1.9 0.4 6.0 3.2
Political instability 16.6 15.4 19.6 18.6 7.8 12.3
Practices of the informal sector 18.8 23.2 8.6 7.3 16.5 17.1
Tax administration 0.9 0.1 2.5 4.1 1.7 2.8
Tax rates 10.0 10.6 8.0 9.8 10.3 10.8
Transportation 0.6 0.0 2.2 0.2 1.6 3.1
* These indicators are computed only for the manufacturing sector
1. The sample for each economy is stratified by industry, firm size, and geographic region. The level of detail of the stratification by industry depends on
the size of the economy. Stratification by size follows the three levels presented in the text: small, medium, and large. Regional stratification includes the
main economic regions in each economy. Through this methodology estimates for the different stratification levels can be calculated on a separate basis
while, at the same time, inferences can be made for the non-agricultural private economy as a whole. For more details on the sampling strategy, review
the Sampling Note available at www.enterprisesurveys.org.
12