ENTERPRISE SURVEYS WHAT BUSINESSES EXPERIENCE

Uzbekistan 2019 ENTERPRISE SURVEYS Country Profile

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Contents

Introduction ...... 3

Firms Characteristics ...... 4

Workforce ...... 5

Firm Performance ...... 5

Physical Infrastructure ...... 6

International Trade...... 6

Access to Finance ...... 7

Crime and Informality ...... 8

Regulations, Permits, and Taxes ...... 8

Corruption ...... 9

Business Environment Obstacles ...... 9

Appendix ...... 11

The Country Profiles produced by the Enterprise Analysis Unit of the World Bank Group provide an overview of key business environment indicators in each economy, comparing them to their respective geographic region and group of countries with similar income levels. The same topics are covered for all countries with slight variations of indicators. All indicators are based on the responses of firms. To learn more about the Enterprise Analysis Unit and to obtain Country Profiles for other countries, please visit www.enterprisesurveys.org

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This work is a product of the staff of The World Bank Group with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank Group, its Board of Executive Directors, or the governments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

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Economy Overview and most services sectors: retail, wholesale, automotive repair, hotels and restaurants, transportation, storage, Uzbekistan 2019 communications, construction, and IT. Public utilities, Region: Europe & Central Asia government services, health care, and financial services Income Group: Lower Middle Income sectors are not included in the sample (Figure 1). The ES interview takes place with top managers and business Introduction owners. The ES are repeated approximately every four years for a The Enterprise Surveys (ES) focus on many aspects of the particular economy (or region). By tracking changes in the business environment. These factors can be business environment, policymakers and researchers can accommodating or constraining for firms and play an look at the effects of policy and regulatory reforms on important role in whether an economy’s private sector firm performance. Repeated surveys aid in studying the will thrive or not. An accommodating business evolution of the business environment and how it affects environment is one that encourages firms to operate the dynamics of the private sector. efficiently. Such conditions strengthen incentives for firms to innovate and to increase productivity — key This document summarizes the results of the Enterprise factors for sustainable development. A more productive Survey for Uzbekistan. Business owners and top private sector, in turn, expands employment and managers in 1,239 firms were interviewed between contributes taxes necessary for public investment in February and September 2019. Figure 2 provides a health, education, and other services. Questions description of the sample breakdown across the three contained in the ES aim at covering most of the topics survey design categories: business sector, firm size, and mentioned above. The topics include infrastructure, location. trade, finance, regulations, taxes and business licensing, corruption, crime and informality, access to finance, innovation, labor, and perceptions about obstacles to Figure 1: Sectors of the economy covered by the doing business. Enterprise Surveys The ES are conducted by the World Bank Group and its Excluded Included partners across all geographic regions and cover small, SECTORS SECTORS medium, and large firms. The size of the firm is Agriculture Manufacturing (all subsectors) Fishing Construction determined by the number of employees: 5 to 19 (small), Mining Motor vehicles sales and 20 to 99 (medium), and 100 or more (large). Firms with Public utilities repair less than five employees are ineligible for the survey. Financial intermediation Wholesale Firms that are 100% state-owned are also ineligible. Public administration Retail Partners for the ES have included the European Bank for Education, health and social Hotels and restaurants work Storage, transportation, and Reconstruction and Development (EBRD), the European communications Investment Bank (EIB), and the UK's Department for IT International Development (DFID). ADDITIONAL CRITERIA ADDITIONAL CRITERIA • < 5 employees • 5+ employees The surveys are administered to a representative sample1 • Informal firms • Formal (registered) firms of firms in the non-agricultural, formal, private economy. • 100% state-owned firms • Minimum of 1% private Sector coverage is defined consistently across all ownership economies and includes the entire manufacturing sector

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Figure 2: Characteristics of firms surveyed Sector

164 272 Food [164] Textiles [140] 140 Garments [106] Rubber & Plastics Products [115] Non-Metallic Mineral Products [139] Other Manufacturing [177] 126 106 Retail [126] Other Services [272] 177 115 139

Size

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603 Small (5-19) [603] Medium (20-99) [415] Large (100+) [221] 415

Location

113 205 115 Tashkent [205] Tashkent Region [155] Samarqand Region [147] 123 155 Andijan Region [133] Surxondaryo Region [124] Qashqadaryo Region [124]

124 147 Fergana Region [123] Navoiy And Jizzakh Region [115] Karakalpakstan [113]

124 133

Firms Characteristics Figure 3: Age distribution of firms 60 57 In addition to collecting information on the business environment and firm performance, the ES also collect 50 information on characteristics of private firms. Figure 3 40 shows the distribution of firms in the private sector 28

according to their age, measured by the number of years 30 % of Firms %of they have been in operation. The effect of the business 20 environment on firm performance may depend on firms’ 11 experience and longevity. Also, older firms and young 10 firms may differ in their ability to successfully navigate the 1 1 0 1 0 business environment. 0-10 11-20 21-30 31-40 41-50 51-60 60+

Firm Age (Years)

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Figure 4 exhibits the percentage of female participation in The incidence of training is measured by the percent of employment, in top management and in firm ownership, firms that offer formal training and the intensity of compared to the equivalent percentages for the region training is measured by the share of workers receiving and for economies with similar income levels. Female training in the manufacturing sector. inclusion in economic activity is necessary for promoting shared prosperity, one of the twin development goals of Figure 6: Within firms offering training, proportion of the World Bank Group. workers trained* 60 53.6 53.0 Figure 4: Female participation in employment, top 50 management and ownership 40 33.4 30 45 39 37 Firms %of 20 40 35 35 32 32 10 30 26 0 25 Uzbekistan2019 Europe & Central Lower Middle 18 20 20 Asia Income 12

Percentage 15 * only for manufacturing firms 10 5 0 Firm Performance % Employees that % Firms w/ a % Firms w/ are female female top female If an economy’s business environment is supportive and manager participation in competitive, resources are often channeled to the most ownership productive uses and firms invest to further increase their Uzbekistan2019 Europe & Central Asia Lower Middle Income productivity. Using the responses to questions on annual sales and the total number of permanent full-time employees, both in the last fiscal year and three fiscal Workforce years earlier, growth measures can be computed for each firm. Figure 7 displays the resulting annual growth rate in The ES collect workforce information such as the number employment and in real sales. By looking at business of permanent full-time employees, the number of environment measures in conjunction with available temporary employees, employees by gender, whether performance measures, policymakers can determine formal training is offered, and the top manager’s which aspects of the business environment may be experience working in the firm’s sector. In addition, for impeding or enabling the growth of the private sector. manufacturing firms, the ES also collects the breakdown Figure 7: Annual employment and sales growth of the workforce between production and non- production workers and between skilled and unskilled 6 4.8 5 production workers. Figures 5 and 6 highlight firms’ 4.0 3.6 4 3.0 investment in the skills and capabilities of their 3 2.3 workforce. 2 1 0

Figure 5: Percentage of firms offering formal training %Annual -1 Annual employment growth Real annual sales growth (%) 40 33 33 -2 (%) 30 -3 17 20 -4 -2.7

% of Firms %of 10 0 Uzbekistan2019 Europe & Central Lower Middle Uzbekistan2019 Europe & Central Asia Lower Middle Income Asia Income

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Physical Infrastructure Figure 9: Days to obtain an electrical connection 40 34 33 A well-developed physical infrastructure, including roads, 30 electricity, water and telecommunications, is central to 20 competitiveness and growth of an economy. Quality Days 9 infrastructure efficiently connects firms to markets for 10 inputs, products, and technologies. It reduces the cost of 0 production and enhances the competitiveness of firms in Uzbekistan2019 Europe & Central Lower Middle domestic and international markets. Asia Income For many industries in the manufacturing sector water is The ES capture the dual challenge of providing a strong also an important input in the manufacturing process. infrastructure for electricity, water supply and Figure 10 presents the average number of water telecommunications in addition to information on the insufficiencies in a typical month experienced by firms in development of institutions that effectively provide and the manufacturing sector. Interruptions in water maintain these public services. provision can have serious harmful effects on firms’ operations. Efficiency in the operation of the private sector requires a reliable supply of electricity. Figure 8 shows the extent to Figure 10: Reliability of water supply* which firms face failures in the provision of electricity as 2.0 1.63 measured by the percent of firms experiencing electrical 1.5 outages and by the number of power outages. Inadequate 1.0 electricity provision supply can increase costs, disrupt 0.28 production, and reduce profitability. 0.5 0.26 0.0 Figure 8: Reliability of electricity supply and related Insufficiencies of No. Uzbekistan2019 Europe & Central Lower Middle losses Asia Income * only for manufacturing firms 70 10 62.8 8.4 Outages No.of Power 60 8 International Trade 50 35.8 6 40 33.0 Participation in international trade allows firms to

% of Firms %of 30 4 expand, raise standards for efficiency, import materials at 20 1.9 lower cost, and acquire updated and better technologies. 1.0 2 10 However, trading also requires that firms deal with 0 0 customs and trade regulations, and often firms are also % of firms experiencing No. of power outages required to obtain export and import licenses. electrical outages The ES quantify the trade activity of firms and collects Uzbekistan2019 Europe & Central Asia Lower Middle Income information on the operational constraints faced when exporting and importing. Figure 11 provides a measure of

the intensity of foreign trade in the private sector, Figure 9 displays the efficiency of infrastructure services captured by the percentage of firms that export directly by quantifying the number of days it takes to obtain an at least 10% of their total annual sales. Figure 11 also electricity connection. Service delays impose additional shows the percentage of manufacturing firms that use costs on firms and may act as barriers to entry and inputs or supplies of foreign origin. investment.

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Figure 11: Percentage of exporting and importing firms The ES provide indicators on the sources of firms financing 80 and on the characteristics of their financial transactions. 66 58 Figure 13 compares the various sources used to finance 60 purchases of fixed assets (investments). Investment 42 purchases can be financed by internal sources, banks, 40 inputs’ supplier credit, or other sources, including non-

% of Firms %of 15 20 10 bank financial institutions or personal networks. 5 Excessive reliance on internal funds may indicate 0 potentially inefficient financial intermediation. % of firms exporting directly % Using inputs of foreign origin* Figure 14 displays two indicators of the use of financial Uzbekistan2019 Europe & Central Asia Lower Middle Income services by private firms: the percentage of firms with a checking or savings account and the percentage of firms with a bank loan. The former indicator measures the use * only for manufacturing firms of deposit mobilization services which helps firms to Efficient customs procedures enable businesses to manage their liquidity and payments. The second directly export and import goods. Figure 12 displays the indicator measures the use of financial services on the average number of days to clear customs for exports and credit side. Availability of credit permits funding projects imports. Delays in clearing customs for exports and that otherwise would be constrained by each firm’s imports create additional costs to the firm, can interrupt limited pool of funds. production, interfere with sales, and may result in Figure 13: Sources of financing for purchases of fixed damaged supplies or merchandise. assets Figure 12: Average days to clear exports and imports through customs Uzbekistan2019 18 5 2 73 2 15 13 10 10 8 Europe & Central Asia 13 44 75 4

5 Days 5 4 4 Lower Middle Income 13 5 4 72 6

0 0 20 40 60 80 100 Exports at customs Imports at customs % of Investment

Uzbekistan2019 Europe & Central Asia Lower Middle Income Financed by banks Financed by equity Financed by supplier credit Financed internally Other Access to Finance Figure 14: Use of financial services Well-developed financial markets provide payment 100 87 84 services, mobilize deposits, and facilitate funding for the 83 80 purchase of fixed assets – such as buildings, land, 60 machinery, and equipment – as well as working capital. 39 Efficient financial markets reduce the reliance on internal 40 29

% of Firms %of 19 funds or informal sources such as family and friends by 20 connecting firms that are creditworthy to a broad range 0 of lenders and investors. Small (5-19) Medium (20-99) Large (100+)

With checking/savings account With bank loan

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Crime and Informality Figure 16: Firms and informality 120 99 97 Firms can become the target of theft, robbery, vandalism, 100 87 or arson. Protecting themselves against crime imposes 80 56 costs as firms are forced to divert resources from 60 productive uses to cover security costs. Moreover, both 37

% of Firms %of 40 foreign and domestic investors perceive crime as an 22 20 indication of social instability, and crime drives up the cost of doing business. 0 Compete with informal Registered when started firms operations Figure 15 displays the average security costs as a Uzbekistan2019 Europe & Central Asia percentage of sales for firms that pay for security, as well Lower Middle Income as the average losses from theft and vandalism among firms that experience losses. These resources represent the opportunity cost of crime since they could have been Regulations, Permits, and Taxes invested in productive activities. Good economic governance in areas such as regulations, Figure 15: Firms’ cost of crime business licensing, and taxation is a fundamental pillar of a favorable business environment. Registered firms pay 8 taxes and are supposed to comply with regulations. 6.8 6.6 6 Figure 17: Time tax and meetings with tax officials 4.3 4 3.1 10 9.0 9.1 % of Sales %of 2.6 9 61.1 70

2.1 of % Firms 8 60 2 47.3 7 50 6 4.9 40 0 5 29.1 % Sales in security costs % Sales in theft costs Time%of 4 30 3 20 2 Uzbekistan2019 Europe & Central Asia 10 Lower Middle Income 1 0 0 Senior mgmt time w/ % of firms that met When firms are formally registered, they are required to govt regulations with tax officials abide by rules and regulations, which are commonly set by governments. Paying taxes is usually the most tangible Uzbekistan2019 Europe & Central Asia consequence of becoming part of the formal private Lower Middle Income sector. Some firms try to avoid these consequences by Permits and licenses are usually required for business to not registering their business and thereby remaining in operate, build a new structure, and to import directly, the informal sector. A large informal sector may represent among other activities. Ideally, these regulations and a challenge to competing formal firms as informal firms permits safeguard the general public’s interest while are able to engage in practices that can give an unfair remaining transparent and not imposing heavy burdens advantage over formal firms that must comply with the on the private sector. prevailing rules and regulations. The ES provide quantitative measures of regulations such Figure 16 provides two measures of the incidence of as business licensing and taxation. Figure 17 illustrates informality in the private sector. The first indicator is the the “time tax” imposed by regulations, which is the percentage of firms that indicate that they face percentage of time spent by senior management dealing competition from unregistered or informal firms. The with regulatory compliance. Figure 17 also presents the second indicator is the percentage of currently registered percent of firms that were visted or required to meet with firms that started operations being formally registered. tax officials.

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Figure 18 focuses on the efficiency of business licensing The ES capture individual transactions where bribes may and permit services. The indicators measure the time be solicited. Figure 20 displays the extent to which firms required to obtain an import license, a construction are requested to pay a bribe in order to receive selected permit, and an operating license. Delays in obtaining public services. Businesses may be asked to pay bribes licenses can be costly to entrepreneurs as they add when they request a construction permit, while trying to uncertainty and additional costs to much needed business secure a government contract, or during meetings with transactions. tax officials. These three types of transactions are common instances where opportunities for bribery occur. Figure 18: Number of days to obtain permits Figure 19: Bribery incidence (percent of firms 100 86 experiencing at least one bribe payment request) 80 25 23 60 50 20 38 Days 40 15 11 25 22 17 18 16 20 10 6 4 Firms %of 5 0 0 Import license Construction Operating license Uzbekistan2019 Europe & Central Lower Middle permit Asia Income

Uzbekistan2019 Europe & Central Asia Lower Middle Income Figure 20: Percentage of firms requested or expected to give gifts or informal payments Complying with regulations is costly for businesses. 33 Excessive or inefficient regulations can discourage private 35 28 sector activity and foreign direct investment. 30 25 17 17 Corruption 20 16 15 9 % of Firms %of 10 7 4 4 Corruption by public officials can be a major 5 administrative and financial burden on firms. Corruption 0 creates an unfavorable business environment by For construction For govt contract In mtgs w/ tax undermining operational efficiency and raising the costs permit officials and risks associated with running a private firm. Uzbekistan2019 Europe & Central Asia Lower Middle Income

Inefficient regulations constrain firms’ operations as they present opportunities for soliciting bribes, where firms Business Environment Obstacles are required to make “unofficial” payments to public officials to get things done. In many economies bribes are Most indicators in the ES are derived from survey common and quite high and they add to the bureaucratic questions that ask businesses for their actual experiences costs in obtaining required permits and licenses. They can dealing with the business environment. For example, be a serious impediment for firms’ growth and “How many days did it take to get a permit?” or “How development. many hours did the power outage last?”. A small number of survey questions ask business owners or top managers Figure 19 provides a composite index of corruption, the for their subjective opinion regarding the importance of bribery incidence, that reflects the percentage of firms various business environment elements. experiencing at least one bribe payment request across six different transactions including paying taxes, obtaining Figure 21 shows the percentage of firms that consider a permits or licenses, and obtaining utility connections. specific business environment obstacle as the most important one. The respondent was asked to choose the

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biggest obstacle to their business from a list of 15 perceptions of managers of medium and small firms. This business environment obstacles. The figure presents the is related to the capacity to navigate business top 10 ranking obstacles compared to the regional environment obstacles: larger firms may have more averages. options to face obstacles but at the same time they are also more visible and more exposed to failures of the Figure 22 displays the top 3 obstacles for small, medium, business environment. and large firms. In many economies, the perceptions of managers of large firms are very different from the

Figure 21: Top ten business environment constraints

25 23 Uzbekistan2019 Europe & Central Asia

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15 15 12 10

% of Firms %of 10 9 8 7 5 5 3 3

0 Tax rates Practices of Electricity Access to Transportation Inadequately Access to land Corruption Tax Business the informal finance educated administration licenses and sector workforce permits

Figure 22: Top three business environment constraints by size

Small (5-19 Employees) Medium (20-99 Employees) Large (100+ Employees) 23 25 25 23 25 24 20 17 20 20 19 15 17 15 12 15 15

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% of Firms %of % of Firms %of 10 Firms %of 10 10

5 5 5

0 0 0 Access to finance Tax rates Inadequately Tax rates Practices of the Electricity Tax rates Transportation Electricity educated informal sector workforce

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Appendix

The following tables contain the values of all indicator variables used in the country profile.

Uzbekistan2019 Europe & Lower Small Medium Large Central Middle All Firms firms firms firms Asia Income Firm Characteristics Age of the establishment (years) 11.3 10.4 12.7 19.9 16.3 17.2 Percent of firms with at least 10% foreign ownership 4.6 1.9 8.9 23.0 7.9 13.2 Percent of firms with at least 10% government/state ownership 1.1 0.2 1.0 18.6 0.7 1.0 Gender Percent of firms with female participation in ownership 25.9 24.6 29.4 26.6 32.2 37.3 Percent of firms with a female top manager 12.4 15.1 6.8 2.5 18.2 20.1 Proportion of permanent full-time workers that are female (%) 34.9 36.6 30.0 39.1 38.5 31.9 Percentage of permanent full-time non-production workers that 36.0 33.8 40.1 34.9 45.5 30.9 are female* Percentage of permanent full-time production workers that are 39.3 37.7 39.2 51.4 35.3 26.6 female* Workforce Percent of firms offering formal training 16.9 13.0 23.6 42.1 32.7 32.5 Proportion of workers offered formal training (%)* 33.4 35.3 30.7 35.9 53.6 53.0 Years of the top manager's experience working in the firm's 14.2 13.9 14.6 16.2 18.7 16.8 sector Number of workers 25.7 9.9 34.7 253.0 31.3 39.4 Proportion of permanent workers (out of all workers) 95.8 96.0 94.5 99.7 96.1 94.1 Proportion of temporary workers (out of all workers) 4.2 4.0 5.5 0.3 3.9 5.9 Proportion of production workers (out of all permanent 75.4 72.1 78.9 86.4 72.1 72.3 workers)* Proportion of skilled workers (out of all production workers)* 63.6 67.0 57.4 61.7 76.5 75.4 Performance Real annual sales growth (%) -2.7 -5.9 4.9 -4.5 2.3 3.6 Annual employment growth (%) 4.0 2.2 9.2 0.2 3.0 4.8 Innovation and Technology Percent of firms that spend on R&D 34.8 24.4 43.1 58.1 25.1 17.1 Percent of firms that introduced a new product/service 23.2 21.2 26.1 40.1 28.6 36.0 Percent of firms whose new product/service is also new to the 67.2 65.1 68.6 81.2 65.4 68.4 main market Percent of firms that introduced a process innovation 14.4 13.1 16.6 22.4 19.7 35.4 Infrastructure Number of electrical outages in a typical month 1.9 2.0 1.7 1.0 1.0 8.4 Percent of firms experiencing electrical outages 35.8 35.5 36.9 33.4 33.0 62.8 Days to obtain an electrical connection (upon application) 9.3 10.2 7.3 9.5 33.8 32.6 Percent of firms experiencing water insufficiencies* 4.1 4.3 4.4 1.4 5.8 17.9 Number of water insufficiencies in a typical month* 0.3 0.3 0.2 0.0 0.3 1.6 Trade Days to clear direct exports through customs 3.7 3.4 4.0 3.7 3.9 7.9 Percent of firms exporting directly (at least 10% of sales) 5.0 2.2 8.3 31.0 15.0 9.5 Percent of firms exporting directly or indirectly (at least 10% of 6.4 3.4 9.3 39.3 19.7 14.0 sales) Days to clear imports from customs* 10.1 9.0 10.5 11.2 5.4 13.1 Percent of firms using material inputs and/or supplies of foreign 41.7 36.2 49.8 58.3 66.2 57.7 origin* Finance Percent of firms with a checking or savings account 83.8 82.6 87.0 84.1 92.6 83.7 Percent of firms with a bank loan/line of credit 22.2 18.6 29.0 39.3 37.6 27.6 Proportion of investment financed internally (%) 73.1 71.6 75.7 71.3 74.8 71.9 11

Uzbekistan2019 Europe & Lower Small Medium Large Central Middle All Firms firms firms firms Asia Income Proportion of investment financed by banks (%) 17.6 18.1 15.8 22.8 13.2 13.0 Proportion of investment financed by supplier credit (%) 1.6 2.0 1.1 0.6 4.2 4.4 Percent of firms using supplier/customer credit to finance 2.9 2.9 2.8 2.7 24.4 24.2 working capital Proportion of investment financed by equity or stock sales (%) 5.3 5.7 5.0 3.7 4.0 4.9 Crime If the establishment pays for security, average security costs (% 3.1 3.3 2.7 3.3 2.1 4.3 of annual sales) If there were losses, average losses due to theft and vandalism (% 6.8 13.0 3.5 n.a. 2.6 6.6 of annual sales) Informality Percent of firms competing against unregistered or informal firms 21.5 24.7 13.3 20.1 37.2 55.5 Percent of firms formally registered when they started 99.2 99.1 99.6 100.0 96.9 87.0 operations in the country Regulations and Taxes Senior management time spent dealing with the requirements of 4.9 4.5 5.6 7.4 9.0 9.1 government regulation (%) Percent of firms that were visited or required to meet with tax 29.1 28.9 29.7 29.3 47.3 61.1 officials Days to obtain an import license 4.1 4.4 2.9 3.7 16.6 17.9 Days to obtain a construction-related permit 37.7 40.2 37.5 19.5 85.9 50.1 Days to obtain an operating license 15.7 18.4 11.6 7.0 24.9 22.3 Corruption Bribery incidence (percent of firms experiencing at least one 5.9 5.4 7.0 7.9 11.3 22.8 bribe payment request) Percent of firms expected to give gifts to get a construction 3.9 3.8 3.5 6.4 16.8 27.7 permit Percent of firms expected to give gifts to secure government 4.0 0.5 9.2 1.3 16.2 32.9 contract Percent of firms expected to give gifts in meetings with tax 6.7 5.3 10.2 7.5 9.5 17.0 officials Biggest Obstacle Access to finance 10.2 10.6 7.3 23.7 12.4 15.5 Access to land 6.7 6.8 6.5 4.0 2.2 4.0 Business licenses and permits 2.6 2.1 4.2 1.2 2.3 2.9 Corruption 4.9 5.2 4.5 1.8 5.6 8.9 Courts 0.1 0.1 0.2 0.3 1.9 1.0 Crime, theft and disorder 1.2 0.6 3.0 0.4 1.5 3.9 Customs and trade regulations 2.3 1.6 4.3 3.0 2.3 4.1 Electricity 11.7 12.2 11.1 6.2 3.6 10.0 Inadequately educated workforce 8.5 8.5 7.3 16.7 8.7 6.1 Labor regulations 1.4 1.2 2.0 1.9 3.5 2.5 Political instability 0.4 0.5 0.0 0.0 10.9 12.5 Practices of the informal sector 15.2 17.2 10.1 9.8 14.6 13.3 Tax administration 3.3 4.0 1.4 2.2 5.8 3.5 Tax rates 23.0 23.4 22.6 18.8 21.1 8.7 Transportation 8.6 6.1 15.4 10.1 3.5 3.1 * These indicators are computed only for the manufacturing sector

1. The sample for each economy is stratified by industry, firm size, and geographic region. The level of detail of the stratification by industry depends on the size of the economy. Stratification by size follows the three levels presented in the text: small, medium, and large. Regional stratification includes the main economic regions in each economy. Through this methodology estimates for the different stratification levels can be calculated on a separate basis while, at the same time, inferences can be made for the non-agricultural private economy as a whole. For more details on the sampling strategy, review the Sampling Note available at www.enterprisesurveys.org.

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