MAPS private sector survey : Madagascar

This document reports the findings of a Spring 1991 study in which 350 firms operating in Madagascar (29% of which were in the informal sector) were surveyed regarding their perceptions of the business climate, opportunities for and restraints on business growth, the effects of public policies, and the role of business association, Beginning with an executive summary, this report is organized into 4 sections, plus appendices, which include tabulated results and a copy of the survey questionnaire. Section 1 briefly sets forth the background and objectives of the study, while Section 2 describes the survey methodology. Section 3 presents major findings, characterized with respect to firm size, gender, type of ownership, sector, and geographic location. Implications for designing private sector development activities in Madagascar are discussed in Section 4. The results show, inter alia, that economic liberalization and regulatory reform are promoting both business growth and new business formation. Lack of credit, high transport and communication costs, and insufficient technical and managerial skills are among the major constraints facing business. As yet, no private business associations are playing an effective role in bringing together firms of different types and those operating in different regions. There is substantial interest in exporting, but also a serious lack of information on markets and product standards.