A study by the World Bank has revealed that lowered covered registration fees for small businesses could improve them from informal to formal.

The study, conducted in collaboration with the Development Research Group and Global Practice for Finance and Innovation, was checking if entrepreneurs would take advantage of costless business registration offer and if that would impact firm level outcomes.

Findings have shown that access to the formal banking system enabled women entrepreneurs to be less credit constrained as the study also revealed that benefits for formalizing businesses are not automatic for women.

The study came amidst small businesses that are informal and unable to pay necessary taxes