Microenterprises profits: what's in the sausage?

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Using survey data from Sri Lanka, recent research finds substantial discrepancies between reported profits and the difference between reported revenues and expenses, with the former being larger. Mixing business with household consumption as well as incurring revenues and expenses in different time periods explain large part of the difference.

So, better ask for the sausage, but not the ingredients.


Bob Cull

Lead Economist, DEC

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