Benefits of a Registration Policy for Microenterprise Performance in India

Posted: 11 Jan 2012 Last revised: 24 Jan 2015

See all articles by Smriti Sharma

Smriti Sharma

United Nations - World Institute for Development Economics Research (UNU/WIDER)

Abstract

This paper evaluates the effects of a voluntary registration policy with government authorities on financial performance of urban microenterprises in the Indian manufacturing sector. Using data from the 2006 World Bank survey of Indian microenterprises and applying the semi-parametric propensity score matching technique, we find that being registered leads to significant gains in sales per employee and value added per employee. Large gains are also noted for male-owned firms, those operating with or without paid labor and those operating outside of the owner’s home.

Keywords: microenterprises, registration, firm performance, India

JEL Classification: L25, L26, 017

Suggested Citation

Sharma, Smriti, Benefits of a Registration Policy for Microenterprise Performance in India. Small Business Economics, Vol. 42, No. 1, 2014, Available at SSRN: https://ssrn.com/abstract=1982786 or http://dx.doi.org/10.2139/ssrn.1982786

Smriti Sharma (Contact Author)

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

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