1. Leora F. Klapper Senior Economist DECRG-FPD lklapper@wlklapper@worldbank.orgrldbank.org 1-202-473-8738

2. Why a database on entrepreneurship? To answer: What drives firm creation and entrepreneurship? What policies are needed to create and support the emergence of new entrepreneurs? Use for Monitoring and Evaluation How can greater formal sector participation / corporate registration be encouraged? What are the benefits for firms that join the formal economic sector?

3. Using data from the registrar of companies This improves upon previously used datasets in that it includes a large number of private firms and all industrial sectors, including a large fraction of new & small companies. Challenges in comparing data across countries include differences in registration and annual filing requirements; the identification of exited firms; re-registrations; and decentralized registry systems.re-registrations This data can be used to benchmark changes in the composition of the private sector over time and study the impact of regulatory, political, and macroeconomic institutional changes on entrepreneurship and growth.

4. New Economic Units Formal Sector Informal Sector Self Employment Micro Businesses Partnerships Companies Civil LawCommon Law New Businesses Sole Proprietorship Companies Methodology

5. Panel A: Total and new registrations recorded: Panel A: Total and new registrations recorded:Panel A: Total and new registrations recorded:Panel A: Total and new registrations recorded: - Total firms - New firms - Year-end 2000-05 Panel B: Number of corporations, by sector and size: Panel B: Number of corporations, by sector and size:Panel B: Number of corporations, by sector and size:Panel B: Number of corporations, by sector and size: - By sector: Manufacturing, Services, Financial, Wholesale & Retail Trade Panel C: The Role of Corporate Registries: Panel C: The Role of Corporate Registries:Panel C: The Role of Corporate Registries:Panel C: The Role of Corporate Registries: Survey Structure

6. Panel C: The Role of Corporate Registries What information are firms required to register? What information are firms required to register?What information are firms required to register?What information are firms required to register? - Is registration compulsory? - Incorporations/ closings/ re-registrations - Is annual financial information compulsory? How do firms register? How do firms register?How do firms register?How do firms register? What information does the Registrar collect? What information does the Registrar collect?What information does the Registrar collect?What information does the Registrar collect? - Corporate registrations, Internet domain names, Patents How is Registrar data distributed? How is Registrar data distributed?How is Registrar data distributed?How is Registrar data distributed? - Accessibility by creditors, suppliers, lenders and private vendors (i.e. D&B) What is the relationship with new and total registrations? What is the relationship with new and total registrations? What is the relationship with new and total registrations? What is the relationship with the business environment? What is the relationship with the business environment? What is the relationship with the business environment?

7. RegionCountryMethodology AfricaCongoLegally oblige all new business to notify the statistical agency when they start their activity EuropeDenmarkCreating the first European registry of “active” entrepreneurs LACEl SalvadorUsing entrepreneurship ratios for monitoring and evaluation of economic policies MENAJordanIntroduced e-registration in 2002 M&E: International Reforms

8. Relationship with the Business Environment Scatter-plots / Bivariate testsScatter-plots Multivariate tests

9. Conclusions Corporate registry data can be an important tool for researchers and policymakers to study the size and growth of the private sector. Benchmarks can be constructed to study the impact of reforms: Entry rates can be used to measure the success of private sector development policies and regulatory and legal reforms. The process of gathering the data becomes a valuable research tool to diagnose problems related to entrepreneurship. This data can be used to empirically test the many factors that affect business creation and to support the findings in other studies (e.g. Doing Business).

10. Reforms that Affect Business Statistics: The Algerian Case New sectoral requirements/ re-registrations 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 199519961997 1998 1999200020022003.

11. 19 5 2010 29

12. Average entry rate 2003-2005 Panel A: Summary statistics, by region

13. Average Business Density 2003-2005 49

14. Panel B: Summary statistics by sector

15. Panel B: Summary statistics by sector

16. Panel C: What information does the Registrar collect?

17. Panel C: What information are firms required to register?

18. Panel C: How do firms register?

19. Panel C: How is Registrar data distributed?

20. What is the relationship with new and total registrations? Panel C: What is the relationship with new and total registrations?

21. What is the relationship with the business environment? Panel C: What is the relationship with the business environment?

22. EBR Country Cases Panel C: EBR Country Cases Evolution of Firm registration 1993-2005 (Guatemala, Sri Lanka and Jordan) Stages of the EBR implementation / Evolution of firm registration (Guatemala) EBR Implementation Active Modernization plan Inactive Modernization plan EBR implementation

23. GDP per capita Scatter Plots Cost of starting abusiness Governance

24. Multivariate Test