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Benefits of a registration policy for microenterprise performance in India

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  • Smriti Sharma

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. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Smriti Sharma, 2014. "Benefits of a registration policy for microenterprise performance in India," Small Business Economics, Springer, vol. 42(1), pages 153-164, January.
    • Handle: RePEc:kap:sbusec:v:42:y:2014:i:1:p:153-164
    DOI: 10.1007/s11187-013-9475-y
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    More about this item

    Keywords

    Microenterprises; Registration; Firm performance; India; L25; L26; 017;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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