Labour laws, the business environment and the growth of micro and small enterprises in South Asia

This report provides empirical evidence on the influence labour related laws and regulations have on enterprise growth and the promotion of decent and productive employment.

This study was conducted to support the ongoing policy dialogue in South Asia on strategies to support the formalization of the informal economy. While informal economy issues affect entrepreneurs and workers alike, this study focuses on the enterprise side of informality. It is part of a series of four country studies commissioned by the ILO to research the impact of labour laws and the cost of regularization on entrepreneurs’ decisions to formalize their business. The countries covered by this research are India, Nepal, Bangladesh, and Sri Lanka.