Obstacles to Registering: Necessity vs. Opportunity Entrepreneurs

14 Pages Posted: 19 Jan 2010

See all articles by Mohammad Amin

Mohammad Amin

World Bank - Enterprise Analysis Unit

Date Written: January 19, 2010

Abstract

Using a new dataset on informal or unregistered firms in Ivory Coast, Madagascar and Mauritius, this paper identifies the type of firms or entrepreneurs that experience greater obstacles to registering. We find important differences between necessity and opportunity entrepreneurs. Averaged over six different obstacles, the severity of obstacles to registering is much higher for necessity compared with opportunity entrepreneurs. This finding appears to be driven by important obstacles including taxes that registered businesses have to pay, registration fees and information required to complete registration procedures. We argue that our results have important policy implications.

Keywords: Informality, Entrepreneurship

JEL Classification: O17, L26, L21

Suggested Citation

Amin, Mohammad, Obstacles to Registering: Necessity vs. Opportunity Entrepreneurs (January 19, 2010). Available at SSRN: https://ssrn.com/abstract=1539163 or http://dx.doi.org/10.2139/ssrn.1539163

Mohammad Amin (Contact Author)

World Bank - Enterprise Analysis Unit ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

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