WLD_2008-2014_BPSFDC_v01_M -- DDI_WLD_2008-2014_BPSFDC_v02_M_WB Development Data Group 2016-03-14 Nesstar Publisher DDI Document - Version 02 - (04/21/21) This version is identical to DDI_WLD_2008-2014_BPSFDC_v01_M_WB but country field has been updated to capture all the countries covered by survey. v01 (March 2016) WLD_2008-2014_BPSFDC_v01_M -- -- Business Practices in Small Firms in Developing Countries 2008-2014 BPSFDC 2008-14 WLD_2008-2014_BPSFDC_v01_M David McKenzie Christopher Woodruff Nesstar Publisher Knowledge for Change Trust Fund David McKenzie DECRG: Finance & Priv Sec Devt Enterprise Survey The dataset documented here contains information from surveys of micro and small enterprises conducted in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka between 2008 and 2014. Researchers from the World Bank and the University of Warwick developed a survey instrument with 26 questions that measured business practices in marketing, stock-keeping, record-keeping, and financial planning. The goal of the research was to examine the relationship between management practices and firm outcomes. The surveys samples varied in their representativeness and size, because they were in most cases conducted as part of impact evaluations of particular programs. The surveys conducted in Bangladesh, Kenya, Mexico, and Sri Lanka provided representative samples of firms of particular size cutoffs, while those in Ghana and Nigeria came from applicants to business plan competitions. The Chile survey was administered to a sample of applicants to a government microenterprise training program. Chile Ghana Kenya Sri Lanka Mexico Nigeria Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka Firm Sample survey data [ssd] The scope of the study includes: - marketing practices - buying and stock control practices - costing and record-keeping practices - financial planning practices The samples were all drawn for purposes other than testing the business practices instrument, and some were selected to reflect very specific sub-populations of interest for particular studies. They range from female-owned subsistence enterprises to a sample of highly-educated owners applying to a business plan competition. But while the samples were not formally designed to be representative of micro- and small-scale enterprises in each country, collectively they reflect the ranges of enterprises in low- and middle-income countries. Detailed information about sampling in each of the seven countries can be found in "Business Practices in Small Firms in Developing Countries" report (p.23-25), available in external resources. Computer Assisted Personal Interview [capi] Researches developed a set of 26 questions that measured key business practices used in the day-to-day running of small businesses. These questions were motivated by the content of the International Labour Organization (ILO’s) "Improve Your Business" training curriculum, which covered marketing, buying and stock control, costing and record-keeping, and financial planning. Examples of business practice questions asked in this study are provided in Bangladesh Formal and Informal Enterprise Survey (Section 7, starting page 17) and Sri-Lanka Female Enterprise Survey (Section 9, starting page 18). Both surveys are published as external resources. Stata replication do-files used for "Business Practices in Small Firms in Developing Countries" report by David McKenzie and Christopher Woodruff and Stata do-files showing how the published dataset was constructed from the raw survey data files, are available in external resources. Use of the dataset must be acknowledged using a citation which would include: - the Identification of the Primary Investigator - the title of the survey (including acronym and year of implementation) - the survey reference number - the source and date of download Example: David McKenzie, World Bank, Christopher Woodruff, University of Warwick. Business Practices in Small Firms in Developing Countries (BPSFDC) 2008-2014. WLD_2008-2014_BPSFDC_v01_M. Dataset downloaded from [url] on [date]. 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. BusinessPracticesReplicationdata.NSDstat Anonymized dataset on business practices for all countries and firms 44579 111 Nesstar 200801 999 - Don't Know/ Can't Say/ Rejected 998 - Business was not started at that time 996 - Not Relevant Survey weight 1725 42854 3.97 859.59 Sector is manufacturing 35281 9298 0 29304 1 5977 Sysmiss 9298 Sector is services 35817 8762 0 24416 1 11401 Sysmiss 8762 Sector is trade 35281 9298 0 19689 1 15592 Sysmiss 9298 Owner is male 35789 8790 0 18013 1 17776 Sysmiss 8790 Age of owner 35053 9526 3 90 Years of education of owner 35075 9504 0 25 Digitspan recall 34739 9840 0 478 1 528 2 2003 3 3448 4 4954 5 6442 6 7216 7 5391 8 2583 9 980 10 391 11 325 Sysmiss 9840 Firm age (years) 34609 9970 0 208 Number of paid workers 33315 11264 0 2330 Value of inventories 22805 21774 0 400000000 Firm identification number 44368 211 1 41130027 Bangladesh country dummy 44579 0 0 42854 1 1725 Survey round 44579 0 1 20484 2 8701 3 2282 4 1954 5 1960 6 1534 7 1533 8 1532 9 1533 10 1533 11 1533 Ownership Status 8409 36170 1 7483 2 491 3 361 4 65 5 5 7 4 Sysmiss 36170 Hours worked by owner in last week 33114 11465 0 150 Owner started business themselves 23135 21444 0 2690 1 20445 Sysmiss 21444 Sales in the last month 38957 5622 0 190000000 Sales in the last year 5919 38660 0 1860000000 Monthly profit 39436 5143 -119350 45000000 Registered at Municipal Level 35125 9454 0 24695 1 10430 Sysmiss 9454 Registered for national taxes 31593 12986 0 21145 1 10448 Sysmiss 12986 Capital stock 31844 12735 -365231.469 16199999488 Marketing 1: Visited competitor's business to see prices Visited at least one of its competitor’s businesses to see what prices its competitors are charging M1 and M2 are coded as zero if the firm says it has no competitors. 38487 6092 0 No 18569 1 Yes 19918 Sysmiss 6092 Marketing 2: Visited competitor's business to see products Visited at least one of its competitor’s businesses to see what products its competitors have available for sale M1 and M2 are coded as zero if the firm says it has no competitors. 38451 6128 0 No 20491 1 Yes 17960 Sysmiss 6128 Marketing 3: Asked existing customers what other products they should offer Asked existing customers whether there are any other products the customers would like the business to sell or produce 38472 6107 0 No 18317 1 Yes 20155 Sysmiss 6107 Marketing 4: Talked with former customer to see why stopped buying Talked with at least one former customer to find out why former customers have stopped buying from this business M4 is coded as zero if the firm says it has no former customers. 38459 6120 0 No 25393 1 Yes 13066 Sysmiss 6120 Marketing 5: Asked supplier what products selling well Asked a supplier about which products are selling well in this business’ industry 38172 6407 0 No 22313 1 Yes 15859 Sysmiss 6407 Marketing 6: Used a special offer to attract customers Attracted customers with a special offer 38494 6085 0 No 27075 1 Yes 11419 Sysmiss 6085 Marketing 7: Have done advertising in last 6 months Advertised in any form (last 6 months) 38496 6083 0 No 31931 1 Yes 6565 Sysmiss 6083 Buying & Stock Control 1: negotiate for lower price Attempted to negotiate with a supplier for a lower price on raw material 38140 6439 0 No 15981 1 Yes 22159 Sysmiss 6439 Buying & Stock Control 2: compare alternate suppliers Compared the prices or quality offered by alternate suppliers or sources of raw materials to the business’ current suppliers or sources of raw material 38438 6141 0 No 16277 1 Yes 22161 Sysmiss 6141 Buying & Stock Control 3: Don't run out of stock frequently The business does not run out of stock monthly or more (coded as one if the business has no stock) 38208 6371 0 No 11299 1 Yes 26909 Sysmiss 6371 Costing & Record Keeping 1: Keep written records Keeps written business records 38468 6111 0 No 20435 1 Yes 18033 Sysmiss 6111 Costing & Record Keeping 2: record every purchase and sale Records every purchase and sale made by the business 28296 16283 0 No 17505 1 Yes 10791 Sysmiss 16283 Costing & Record Keeping 3: can use records to know cash on hand Able to use records to see how much cash the business has on hand at any point in time 37963 6616 0 No 23467 1 Yes 14496 Sysmiss 6616 Costing & Record Keeping 4: use records to know whether sales of product increas Uses records regularly to know whether sales of a particular product are increasing or decreasing from one month to another 37922 6657 0 No 24482 1 Yes 13440 Sysmiss 6657 Costing & Record Keeping 5: worked out cost of each main product Works out the cost to the business of each main product it sells 37273 7306 0 No 12717 1 Yes 24556 Sysmiss 7306 Costing & Record Keeping 6: know which goods make most profit per item Knows which goods you make the most profit per item selling 38482 6097 0 No 6534 1 Yes 31948 Sysmiss 6097 Costing & Record Keeping 7: have a written budget for monthly expenses Has a written budget, which states how much is owed each month for rent, electricity, equipment maintenance, transport, advertising, and other indirect costs to business 38465 6114 0 No 27627 1 Yes 10838 Sysmiss 6114 Costing & Record Keeping 8: have records that could document ability to pay to b Has records documenting that there exists enough money each month after paying business expenses to repay a loan in the hypothetical situation that this business wants a bank loan 38429 6150 0 No 25141 1 Yes 13288 Sysmiss 6150 Financial Planning 1: review financial performance monthly Review the financial performance of their business and analyze where there are areas for improvement at least monthly 38309 6270 0 No 23979 1 Yes 14330 Sysmiss 6270 Financial Planning 2: have sales target for next year Has a target set for sales over the next year 38517 6062 0 No 22220 1 Yes 16297 Sysmiss 6062 Financial Planning 3: compare sales goal to target monthly Compares their sales achieved to their target at least monthly 38270 6309 0 No 27872 1 Yes 10398 Sysmiss 6309 Financial Planning 4: have a budget of costs for next year Has a budget of the likely costs their business will have to face over the next year 38483 6096 0 No 29906 1 Yes 8577 Sysmiss 6096 Financial Planning 5: prepare profit and loss statement Has an annual profit and loss statement 31267 13312 0 No 24412 1 Yes 6855 Sysmiss 13312 Financial Planning 6: prepare cashflow statement Has an annual statement of cash flow 31235 13344 0 No 29158 1 Yes 2075 2 2 Sysmiss 13344 Financial Planning 7: prepare balance sheet Has an annual balance sheet 31218 13361 0 No 29723 1 Yes 1493 2 2 Sysmiss 13361 Financial Planning 8: prepare income and expenditure statement Has an annual income/expenditure sheet 31267 13312 0 No 26321 1 Yes 4944 2 2 Sysmiss 13312 Percent of sales from within small local area 1621 42958 2 100 Number of firms in same business line in your area 19592 24987 0 7000 Most important competitor is located within 1 km of business 18935 25644 0 5137 1 13798 Sysmiss 25644 Would take less than a day for customer to replace you 3782 40797 0 2111 1 1671 Sysmiss 40797 Detailed industry code 24210 20369 1 9309 Market exchange rate to USD (divide by this to get USD) 44579 0 1.41 469 Father owned a business 19954 24625 0 11356 1 8598 Sysmiss 24625 Mother owned a business 19953 24626 0 17299 1 2654 Sysmiss 24626 Sri Lanka country dummy 44579 0 0 24637 1 19942 Discount rate 5 months vs 6 months (higher = more impatient) 20880 23699 -8.5 1 -8 4 -7 2 -6 3 -5 1 -4 26 -3.5 1 -3 5 -2 3 -1.5 1 -1 5 -0.899999976158142 1 -0.5 9 -0.400000005960464 1 -0.200000002980232 1 -0.00600000005215406 1 0 1306 0.00100000004749745 32 0.0020000000949949 1 0.00249999994412065 21 0.00499999988824129 28 0.00999999977648258 958 0.0149999996647239 9 0.0199999995529652 1061 0.025000000372529 39 0.0299999993294477 530 0.0399999991059303 373 0.0500000007450581 3344 0.0599999986588955 393 0.0700000002980232 195 0.0750000029802322 30 0.0799999982118607 341 0.0900000035762787 162 0.100000001490116 3631 0.109999999403954 176 0.119999997317791 112 0.125 30 0.129999995231628 108 0.140000000596046 33 0.150000005960464 862 0.159999996423721 37 0.170000001788139 11 0.180000007152557 66 0.189999997615814 24 0.200000002980232 1693 0.209999993443489 78 0.219999998807907 109 0.239999994635582 31 0.25 382 0.259999990463257 24 0.270000010728836 22 0.275000005960464 11 0.280000001192093 33 0.300000011920929 604 0.310000002384186 14 0.319999992847443 33 0.330000013113022 22 0.340000003576279 11 0.349999994039536 71 0.400000005960464 417 0.409999996423721 34 0.419999986886978 1 0.430000007152557 1 0.439999997615814 11 0.444999992847443 1 0.449999988079071 5 0.46000000834465 2 0.479999989271164 11 0.5 2209 0.509999990463257 28 0.519999980926514 30 0.550000011920929 43 0.589999973773956 11 0.600000023841858 152 0.649999976158142 11 0.699999988079071 148 0.709999978542328 13 0.75 24 0.800000011920929 118 0.899999976158142 153 0.901000022888184 1 0.9200000166893 2 0.925000011920929 11 0.949999988079071 5 0.959999978542328 1 0.980000019073486 1 0.999199986457825 317 1 3 Sysmiss 23699 Hyperbolic discounter 20629 23950 0 14289 1 6340 Sysmiss 23950 Raven test score 32037 12542 0 1973 1 3697 2 4568 3 4521 4 3724 5 3448 6 3017 7 2591 8 1833 9 1352 10 810 11 339 12 164 Sysmiss 12542 Business is surviving 24602 19977 0 2464 1 22138 Sysmiss 19977 Randomly Assigned to Training Treatment 22380 22199 0 14559 1 7821 Sysmiss 22199 Attends Business Training after being assigned 5916 38663 0 3963 1 1953 Sysmiss 38663 Received a treatment other than training 18843 25736 0 8459 1 10384 Sysmiss 25736 Intervention_Grp1 10835 33744 1 savings 4843 2 training 3808 3 wage subs 2184 Sysmiss 33744 Intervention_Grp2 6463 38116 1 savings 0 2 training 1307 3 wage subs 5156 Sysmiss 38116 Sum of hours worked by paid workers, normal week 8678 35901 0 2300 Sri Lankan booster sample 1598 42981 1 Yes 830 2 No 768 Sysmiss 42981 Business SIC code 16464 28115 11 930 number of paid workers, 1st year 16464 28115 0 12760 1 2031 2 1450 3 117 4 53 5 42 12 11 Sysmiss 28115 Raven C score 14507 30072 0 813 1 1423 2 1989 3 1786 4 1526 5 1453 6 1623 7 1522 8 1221 9 603 10 394 11 121 12 33 Sysmiss 30072 Audit of Buying & Stock Control 1: negotiate for lower price 334 44245 0 179 1 155 Sysmiss 44245 Audit of Buying & Stock Control 2: compare alternate suppliers 334 44245 0 146 1 188 Sysmiss 44245 Audit of Buying & Stock Control 3: Don't run out of stock frequently 334 44245 0 64 1 270 Sysmiss 44245 Audit of Costing & Record Keeping 1: Keep written records 335 44244 0 192 1 143 Sysmiss 44244 Audit of Costing & Record Keeping 2: record every purchase and sale 334 44245 0 200 1 134 Sysmiss 44245 Audit of Costing & Record Keeping 3: can use records to know cash on hand 334 44245 0 230 1 104 Sysmiss 44245 Audit of Costing & Record Keeping 4: use records to know whether sales of produc 335 44244 0 239 1 96 Sysmiss 44244 Audit of Costing & Record Keeping 5: worked out cost of each main product 335 44244 0 143 1 192 Sysmiss 44244 Audit of Costing & Record Keeping 6: know which goods make most profit per item 335 44244 0 87 1 248 Sysmiss 44244 Audit of Costing & Record Keeping 7: have a written budget for monthly expenses 335 44244 0 279 1 56 Sysmiss 44244 Audit of Costing & Record Keeping 8: have records that could document ability to 335 44244 0 256 1 79 Sysmiss 44244 Audit of Financial Planning 1: review financial performance monthly 335 44244 0 288 1 47 Sysmiss 44244 Audit of Financial Planning 2: have sales target for next year 335 44244 0 242 1 93 Sysmiss 44244 Audit of Financial Planning 3: compare sales goal to target monthly 335 44244 0 310 1 25 Sysmiss 44244 Audit of Financial Planning 4: have a budget of costs for next year 335 44244 0 290 1 45 Sysmiss 44244 Audit of Financial Planning 5: prepare profit and loss statement 200 44379 0 191 1 9 Sysmiss 44379 Audit of Financial Planning 6: prepare cashflow statement 200 44379 0 200 Sysmiss 44379 Audit of Financial Planning 7: prepare balance sheet 200 44379 0 199 1 1 Sysmiss 44379 Audit of Financial Planning 8: prepare income and expenditure statement 200 44379 0 193 1 7 Sysmiss 44379 Audit of Marketing 1: Visited competitor's business to see prices 332 44247 0 134 1 198 Sysmiss 44247 Audit of Marketing 2: Visited competitor's business to see products 330 44249 0 149 1 181 Sysmiss 44249 Audit of Marketing 3: Asked existing customers what other products they should o 335 44244 0 164 1 171 Sysmiss 44244 Audit of Marketing 4: Talked with former customer to see why stopped buying 333 44246 0 271 1 62 Sysmiss 44246 Audit of Marketing 5: Asked supplier what products selling well 327 44252 0 246 1 81 Sysmiss 44252 Audit of Marketing 6: Used a special offer to attract customers 335 44244 0 195 1 140 Sysmiss 44244 Audit of Marketing 7: Have done advertising in last 6 months 335 44244 0 179 1 156 Sysmiss 44244 Sri Lanka SME sample 471 44108 1 471 Sysmiss 44108 Nigeria country dummy 44579 0 0 40045 1 4534 Sector is crop and animal 1757 42822 0 1451 1 306 Sysmiss 42822 Sector is other 1757 42822 0 1321 1 436 Sysmiss 42822 3 digit SIC code for business sector 1723 42856 112 9700 Winner in business plan competition 1757 42822 0 891 1 866 Sysmiss 42822 Kenya Country Dummy 44579 0 0 37505 1 7074 Ghana more detailed business type 332 0 Agriculture, hunting and forestry 12 Construction 17 Electricity, gas and water supply 1 Financial intermediation 6 Fishing 2 Hotels and restaurants 16 Manufacturing 79 Real estate, renting and business activities 41 Transport, storage and communications 11 Wholesale and retail trade; repair of vehicles, personal goods and household goods 147 Treated in Ghana 140 44439 0 70 1 70 Sysmiss 44439 Ghana dummy variable 44579 0 0 43708 1 871 Chile country dummy 44579 0 0 44421 1 158 Mexico dummy variable 44579 0 0 34304 1 10275 Country 44579 0 Bangladesh 1725 Chile 158 Ghana 871 Kenya 7074 Mexico 10275 Nigeria 4534 Sri Lanka 19942