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Finding a path to formalization in Benin : early results after the introduction of the entreprenant legal status (Inglês)

In April 2014, the Government of Benin launched the entreprenant status, a simplified and free legal regime offered to small informal businesses to enter the formal economy. This paper presents the short-term results of a randomized impact evaluation testing three different versions of the entreprenant status on business registration decisions, each version including incremental incentives to registration: (i) information on the new legal status and its benefits, (ii) business training, counseling services, and support to open a bank account, (iii) tax mediation services. The study included 3,600 informal businesses operating with a fixed location in Cotonou, Benin, which were randomly allocated between three treatment groups and one control group. One year after the program launch, all versions of the program had significant impact on formalization rates. The impact was 9.1 percentage points in the first treatment group; 13 percentage points in the second group; and 15.8 percentage points in the last group. The program had a higher impact on male business owners, with more education, operating outside Dantokpa Market, in sectors other than trade, and that before being offered the incentives to formalization had characteristics similar to businesses that were already formal. Data from a second follow-up survey, which is expected to take place in March 2016, will explore the impacts on other outcomes, like business performances or access to banking.

Detalhes

  • Autor

    Benhassine,Najy, Mckenzie,David J., Pouliquen,Victor Maurice Joseph, Santini,Massimiliano

  • Data do documento

    2015/12/09

  • TIpo de documento

    Documento de trabalho sobre pesquisa de políticas

  • No. do relatório

    WPS7510

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    Benin,

  • Região

    África,

  • Data de divulgação

    2016/04/20

  • Disclosure Status

    Disclosed

  • Nome do documento

    Finding a path to formalization in Benin : early results after the introduction of the entreprenant legal status

  • Palavras-chave

    informal business;Micro and Small Business;amount of tax due;higher level of education;Micro and Small Enterprises;small and medium enterprise;agency for international development;treatment group;chamber of commerce;Tax Administration;form of tax;access to bank;follow up survey;types of cost;public policy benefit;provision of information;impacts on business;limited liability company;business plan development;Business Enabling Environment;access to banking;tax system affect;business training;mediation services;Business Registration;bank service;business performance;tax inspector;administrative datum;monthly profit;informal sector;survey data;commercial bank;registration process;rental value;informal firms;baseline survey;tax rate;legal regime;take-up rate;qualitative data;program impact;entry regulation;pay taxes;study design;Tax Exemption;business service;tax payment;tax authority;tax authorities;tax preparation;focus group;phone number;business management;evaluation design;public company;sampling framework;legal barrier;business survey;means tax;specific incentives;formal economy;tax registration;bank finance;counseling service;public contract;legal entities;legal entity;qualitative information;unfair competition;banking system;organizational chart;Public Services;Business Regulation;rolling basis;standard deviation;descriptive statistic;trade activity;high share;business knowledge;banking product;development policy;intermediate outcome;birth certificate;study including;field experiment;trade sector;electricity network;business facilitation;firm owner;quantitative data;ownership rate;tracer study;social acceptance;increased access;marginal externality;Cash Transfer;survey sampling;tax burden;high tax;survey results;banking access;internet banking;initial deposit;tax form;tax return;added tax;future tax;tax declaration;sales development;human capital;Advisory services;business entry;tax obligation;public program;mobile money;Consulting services;sample selection;population characteristic;representative sample;small area;public authority;registration system;tax information;legal environment;trading activity;financial product;tax calculation;profit increase;business profit;formal certification;firm performance;female business;alternative measure;open access;monitoring data;small entrepreneur;lease contract;business premise;largest markets;financial statement;program beneficiary;secondary legislation;business value;ppp terms;tax implications;important component;individual enterprise;institutional change;business counselling;medium firms;foreign affair;quantitative survey;registered business;

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