Simplified Enterprise Survey and Private Sector Mapping Libya 2015 Public Disclosure Authorized Public Disclosure Authorized
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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Simplified Enterprise Survey Enterprise Simplified and Private Sector Mapping Sector Private and LIBYA 2015 LIBYA Simplified Enterprise Survey and Private Sector Mapping LIBYA 2015 © 2015 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 18 17 16 15 This work is a product of the staff of The World Bank with external contributions. The findings, interpre- tations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with you. If you wish to re-use a compo- nent of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights @worldbank.org. Cover design: Bill Pragluski, Critical Stages LLC. Contents Acknowledgments ................................................................vii Abbreviations and Glossary .........................................................ix 1. Introduction and Background on Recent Events ...................................1 2. Approach and Methodology .....................................................3 2.1. Objectives ...................................................................3 2.2. Secondary Research ...........................................................3 2.3. Sample Design ...............................................................3 2.4. Limitations ..................................................................5 Note ............................................................................7 3. Findings of the Enterprise Survey ................................................9 3.1. Profile of the Sample ..........................................................9 3.2. Dynamics of the Private Sector before the Crisis. 17 3.3. The Impact of the Summer 2014 Crisis on the Libyan Private Sector ................21 3.4. Main Constraints to Growth ...................................................32 3.5. Perspectives .................................................................37 Notes ..........................................................................40 4. Private Sector Mapping ........................................................41 4.1. Methodological Note .........................................................41 4.2. Background on the Private Sector in Libya ......................................41 4.3. Sizing the Libyan Economy ....................................................43 4.4. Structure of the Libyan Economy ..............................................45 4.5. Sizing the Private Sector ......................................................48 4.6. Per Sector Analysis ...........................................................50 Notes ..........................................................................79 5. Conclusions and Recommendations .............................................81 Note ...........................................................................82 Figures 3.1 Panel Firms Represented as Broad Sectors vs. Size (n = 457) .......................11 3.2 Panel Firm Represented as Broad Sectors vs. Location (n = 457) ...................11 3.3 What Were Your Yearly Revenues in Fiscal Year 2013 in US Dollars per Size of Company? (n = 224) ...................................................12 3.4 Does Your Company Usually Export Goods? (n = 457) ...........................12 iii 3.5 Days Reported to Obtain an Operating/Import/Export License (n = 126) ...........13 3.6 Over the Last Year, How Many Times Was This Establishment Either Inspected by Tax Officials or Required to Meet with Them? (n = 457) ........................14 3.7 Percentage of Firms Having a Loan or Credit Compared to Regional Peers ..........15 3.8 Does This Establishment Have a Credit Line or a Loan from a Financial Institution? (n = 456) ........................................................15 3.9 What Is the Reason for Not Having a Loan or Line of Credit Currently? (n = 447) ......16 3.10 Are You Familiar with Islamic Modes of Financing? (n = 457) .....................17 3.11 When Comparing End of June 2013 and End of June 2014, Did Your Sales? (n = 457) ...........................................................18 3.12 When Comparing End of June 2013 and End of June 2014, Did Your Investments? (n = 457) .......................................................19 3.13 When Comparing End of June 2013 and End of June 2014, Did the Number of Employees? (n = 457) ......................................................20 3.14 When Comparing End of June 2013 and End of June 2014, Did the Number of Domestic Competitors? (n = 457) ...........................................21 3.15 Has Your Firm Experienced a Direct Impact from the Current Conflict (Started in the Summer 2014)? (n = 457) .......................................22 3.16 Has the Firm Moved Offices or Production Sites because of Events Related to the Current Crisis? (n = 457) ..................................................24 3.17 Has Your Number of Employees Been Impacted by the Current Conflict? (n = 457) .....25 3.18 Have Your Sales Been Impacted by the Current Conflict? (n = 457) .................26 3.19 Additional Days to Receive Supplies after the Summer Crisis (n = 255) .............27 3.20 Percentage Decrease of the Capacity Utilization since the Crisis for Some Selected Sectors .............................................................28 3.21 Compared to Last Year Has Your Capacity Utilization/Hours of Operation Changed? (n = 457) ..........................................................28 3.22 Has the Number of Domestic Competitors Been Impacted by the Current Crisis? (n = 457) ............................................................29 3.23 Have Your Investments Been Impacted by the Current Conflict? (n = 457) ..........30 3.24 Has Your Access to Financing Been Impacted by the Recent Events Related to the Current Crisis? (n = 457) ...............................................31 3.25 What Is Your Assessment of the Ease of Obtaining Foreign Currency as Compared to Before July 2014? (n = 457) .......................................31 3.26 Intensity of the Crisis by Region ...............................................32 3.27 Please Rate the Following Factors as Constraints to Your Enterprise’s Operation and Growth on the Following Scale (n = 457) ..........................33 3.28 Percentage of Firms Identifying Constraints as “Major” or “Very Severe” Obstacle Compared to 2011 ICA ..............................................37 3.29 What Is Your Expectation for Your Firm’s Employment for One Year from Now? (n = 457) .............................................................38 iv Contents 3.30 Over the Next Year, How Do You Think the Following Factors Will Influence Your Firm’s Hiring of Additional Workers? (n = 457) .............................39 4.1 Libyan GDP from 2010 to 2014 ...............................................44