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Private Sector Development

Re-thinking informality: It’s all in the details

Andreja Marusic's picture

Informality is the subject of many a report, study, intervention, policy brief, political agenda and fireside chat, and due to its prevalence, rightfully so. In emerging and developing economies, the informal sector accounted for 32% of GDP and 70% of employment in 2016. This is a concern because informal firms tend to be less productive than formal firms and pay workers less than their formal counterparts. Reversing informality is enticing and promises rewards in the form of potential tax revenues, productivity gains, and poverty eradicating capabilities.  But the quest to bring more firms and workers into the formal sector has proven to be complex.

Policy hackathon explained: How an all-society approach can engage entrepreneurs and governments to develop better policy in West Africa

Alexandre Laure's picture
Also available in: Français
Brainstorming session at the Bamako Policy Hackathon
Brainstorming session at the Bamako Policy Hackathon. Photo: World Bank

What would happen if you put all the relevant players for the entrepreneurial ecosystem — startup founders, policymakers, developers, students, investors — into one room and facilitated an open dialogue on improving the business environment? This is exactly what is taking place in West Africa through a series of policy hackathons supported by the World Bank.

We all have a stake in development and this multifaceted process – local, top-down, bottom-up – is a great example of African innovation. Civic engagement in policymaking is not happening elsewhere so it’s not just about importing knowledge and best practice but generating lessons we can export to the rest of the world,” said Sebastian Molineus, World Bank Director of the Finance, Competitiveness and Innovation (FCI) Global Practice about policy hackathons taking place in West Africa, at a recent World Bank Brown-Bag Lunch in January.

So what is a policy hackathon?

What did 200 African incubators learn from our webinar on open innovation?

Alexandre Laure's picture
Also available in: Français
 Niger Digital.
Entrepreneurs participating in the e-Takara competition to address specific challenges expressed by Nigerien public administrations. Credit: Niger Digital

The training has completed my knowledge about open innovation. I can now go and talk to potential clients to identify their needs and show what we can offer them.” -- Mariem Kane, Hadina RIMTIC incubator
 
Distributive, participative and decentralized, open innovation programs can pave the way for start-ups to access larger markets and business opportunities. They also allow corporate partners to respond quickly to changing market dynamics and test out new products or target new audiences.

Does the digital economy provide tourism opportunities for local communities in Africa?

Hermione Nevill's picture
tribe-traditional
The authentic travel experience should be a boon for Africa, but its missing the mark.

Since 2016, tourism market trends have shifted away from “get-a-way” travel to traveling for ‘authentic’ experiences.  This transformation is driven by the world’s largest consumer group—millennials—and amplified by digital platforms and social media but is also echoed across other segments. Destinations and entrepreneurs are catching on and developing ‘off-the-beaten-path’ products that provide travelers greater interaction with local people.

African countries, with their abundant wealth of natural and cultural assets, are perfectly positioned to capitalize on this shift, just as the rise of digital platforms are reducing market access barriers for such products. However, in our new World Bank Group report, we found that while demand for experiencing ‘life like a local’ in Africa is set to outpace growth of arrivals, there are still many supply-side challenges that need to be addressed.
  • Standards: Africa’s market share lags other regions, and many products are not of sufficient standard. 
  • Exclusion and the digital divide: Marginalized groups, often best placed to deliver the product, are at risk of further exclusion. 
  • Community Impact: Bringing tourism into communities also brings other risks which need to be managed. 

How can the Czech Republic activate its business angels market?

Anwar Aridi's picture

everything possible/Shutterstock.com
Tech startups and business angels are not what comes to mind when thinking of the Czech Republic (CR). Instead, this small central European country is known for its beer, scenic bridges crossing the Vltava river, and existential writers. Not so easy to add “vibrant entrepreneurial hub” to the list as it celebrates the 100th anniversary of Czechoslovakia. Nevertheless, that's exactly what the CR policymakers intend to do. 

CR has what it takes to be an entrepreneurial hub for Central Europe

Back to basics - company law 101 for startups

Andreja Marusic's picture
Starting a business is a risky endeavor and requires courage. It is also an opportunity. Whether this opportunity will materialize depends on how well the aspiring entrepreneur is prepared and how adaptable the startup is. Equally important is the policy and legal framework that can mitigate the risk and increase chances of success.

Trust, courts, and starting a business: The case of Serbia

Jose Daniel Reyes's picture
Company registration is one of the cornerstones of a functioning economy. A business register maintains the repository of data on companies authorized to operate in a given jurisdiction. With many businesses appearing every day, company registries play a key role in formalizing the economy, promoting access to finance for small enterprises, and ensuring legal protection for investors. The breadth of the information stored in the registers also help policy makers follow business dynamics and study the impact of business environment reforms.

Leveraging finance for the Nigerian off-grid solar market

Jonathan Coony's picture
When I asked a table of Nigerian bankers whether corporate debt to finance solar off-grid and mini grid companies would find favor in local capital markets, they literally laughed at the idea. No, they said very clearly, there’s no mandate for green here, certainly not among the funds they represented, and off-grid solar was new and untested anyway.

Such reluctance of many local financial institutions (FIs) to invest has been a major impediment to the Nigerian solar off-grid market which lags compared to other African countries such as Kenya.
Nigerian solar companies discuss finance models
Nigerian solar companies discuss finance model

How Pakistan can diversify, digitally

Miles McKenna's picture

A year ago, Farzana had no idea that an online business would so drastically change her life. She was drowning in debt with no way of repaying, worrying about her family’s financial future. Reaching for a lifeline, she joined GharPar, a women-founded, women-led social enterprise that connects beauticians with clients seeking at-home salon services through an Uber-like digital platform.

 
 

How can Local Capital and Foreign Brands Join Forces to Create Millions of Jobs? The Case of Non-Equity Modes of Investment

Priyanka Kher's picture

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