This research was conducted in Pakistan between January 2006 and December 2007. Data from 935 manufacturing and service sector registered establishments was analyzed.
The objective of the survey is to obtain feedback from enterprises in client countries on the state of the private sector as well as to help in building a panel of enterprise data that will make it possible to track changes in the business environment over time, thus allowing, for example, impact assessments of reforms. Through interviews with firms in the manufacturing and services sectors, the survey assesses the constraints to private sector growth and creates statistically significant business environment indicators that are comparable across countries.
The survey topics include firm characteristics, gender participation, access to finance, annual sales, costs of inputs/labor, workforce composition, bribery, licensing, infrastructure, trade, crime, competition, capacity utilization, land and permits, taxation, informality, business-government relations, innovation and technology, and performance measures. The questionnaire also assesses the survey respondents' opinions on what are the obstacles to firm growth and performance. The mode of data collection is face-to-face interviews.
Kind of data
Sample survey data [ssd]
Regions covered are selected based on the number of establishments, contribution to employment, and value added. In most cases these regions are metropolitan areas and reflect the largest centers of economic activity in a country.
Unit of analysis
The primary sampling unit of the study is the establishment. An establishment is a physical location where business is carried out and where industrial operations take place or services are provided. A firm may be composed of one or more establishments. For example, a brewery may have several bottling plants and several establishments for distribution. For the purposes of this survey an establishment must make its own financial decisions and have its own financial statements separate from those of the firm. An establishment must also have its own management and control over its payroll.
Producers and sponsors
Establishments were selected using stratified random sampling design. The survey covered manufacturing and services sectors and generated a large enough sample size for selected industries to conduct statistically robust analyses. With level of precision at a minimum 7.5 percent for 90 percent confidence intervals about estimates of population proportions and mean of log sales at the national, provincial and industry level.
The sampling frame was drawn from the 2005 Economic Census of Pakistan, conducted by Pakistan's Federal Bureau of Statistics (FBS). As the target population was formal, urban manufacturing and services establishments with more than 5 full-time employees, the census identified 583,329 manufacturing firms and 1,566,722 establishments in Wholesale/Retail trade & Restaurants.
In accordance with the size and make up of the economy, the manufacturing sector was stratified into five 2-digit Pakistan Standard Industrial Classification (PSIC) sectors: (i) food processing, (ii) textiles, apparel & leather, (iii) chemicals and products, (iv) metal and electric machinery, and (v) sports goods and handicrafts with a residual stratum based on the 14 largest cities from the four provinces of the country. Services establishments engaged in wholesale & retail trade, hotels & restaurants were grouped to constitute an independent stratum for each provincial capital.
Within each industry, the total sample size was distributed to the provincial/city sub-strata based on proportional allocation in order to be representative of the nation, the industry groups and the urban areas of each of the four provinces. Given the domination of smaller firms in sample frame, a sampling approach which oversampled larger firms was employed to ensure a sufficient number of large enterprise which otherwise might be underrepresented.
The specific steps involved: (i) extracting from the frame and dividing into activity/industry groups with selection made in proportion to each group's contribution to total industrial employment, (ii) allocating the establishments selected in to each industry group across the provinces/cities selected using a proportional allocation, and (iii) selecting the establishments for each province/city sub-stratum with a probability of selection which is inversely proportional to size (i.e. larger firms will be selected with a higher probability). Due to the oversampling of larger firms, weights were computed so that inferences about the population could be extrapolated from the sample.
The Pakistan Enterprise Survey 2007 sample was also designed to include up to 600 firms from the original sample of Pakistan ICS 2002. Out of a total of 846 establishments surveyed in 2002 (panel firms with location and other identifiers). The remaining firms were kept as potential replacements in case of non-response by an establishment of similar characteristics in the original panel sample. In the end, 402 firms were interviewed out of 795 firms contacted.
The field work involved a sample of almost 2700 firms with more than 2300 firms contacted in order to complete the survey of 1337 firms - 57 percent success rate. Of the 1000 non-successful contacts, about 45 percent were not located due to poor contact information and 25 percent refused to participate. Of the rest, 20 percent were closed and 10 percent were either non-responsive or produced non-usable data. For the non-panel sample, the response rate was slightly higher at 60 percent, but of the 612 nonresponding firms, 55 percent were not found due to insufficient contact information, 21 percent refused participation, 11 percent were non-usable and 13 percent were confirmed as closed.
Based on the sampling approach described above, where the sample was drawn using stratification along two variables and the firms were chosen with a probability related to size, appropriate weights were needed to accommodate the oversampling of larger firms. Sampling weights were calculated based on the distribution of the frame across stratification variables (city and sector). Each establishment was weighted by the establishment’s share of employment in the stratum to which the firm belongs. In other words, the weight is calculated as the inverse of the probability of selection which in turn is calculated by taking the employment of the firm, dividing by the employment of the firm’s stratum and multiplying by the number of firms sampled from the firm’s stratum.
Dates of collection
Mode of data collection
The current survey instruments are available:
- Pakistan 2007 Manufacturing Sector Questionnaire;
- Pakistan 2007 Services Sector Questionnaire.
The survey is fielded via two instruments in order to not ask questions that are irrelevant to specific types of firms, e.g. a question that relates to production and nonproduction workers should not be asked of a retail firm.
The survey topics include firm characteristics, gender participation, access to finance, annual sales, costs of inputs/labor, workforce composition, bribery, licensing, infrastructure, trade, crime, competition, capacity utilization, land and permits, taxation, informality, business-government relations, innovation and technology, and performance measures. Over 90% of the questions objectively ascertain characteristics of a country’s business environment. The remaining questions assess the survey respondents’ opinions on what are the obstacles to firm growth and performance.
Confidentiality of the survey respondents and the sensitive information they provide is necessary to ensure the greatest degree of survey participation, integrity and confidence in the quality of the data. Surveys are usually carried out in cooperation with business organizations and government agencies promoting job creation and economic growth, but confidentiality is never compromised.
Aggregate indicators based on Enterprise Survey data are available to the public at https://www.enterprisesurveys.org
Firm-level data is also available to the public free-of-charge. In order to access the data, users must agree to abide by a strict confidentiality agreement available through Enterprise Analysis Unit website by clicking on "External users register here" at https://www.enterprisesurveys.org/Portal
Where necessary please site the source as "Enterprise Analysis Unit - World Bank Group https://www.enterprisesurveys.org"
Disclaimer and copyrights
The user of the data acknowledges that the original collector of the data, the authorized distributor of the data, and the relevant funding agency bear no responsibility for use of the data or for interpretations or inferences based upon such uses.