Study on the Effects of Business Formalization Programs on the Productivity and Long-Term Survival of Micro and Small Enterprises in APEC

This report examines business formalization and business support programs implemented across selected APEC economies and their effects on the productivity and long-term survival of micro and small enterprises. Using a mixed-methods approach that combines firm-level surveys, program mapping, and interviews with policymakers, the study analyzes both policy design and enterprise outcomes. The findings indicate that firms participating in these programs experienced improvements in business performance, market access, and integration into formal financial and regulatory systems. Programs that combine registration processes with operational support—such as access to finance, compliance assistance, and market linkages—tend to generate stronger and more sustainable results than registration-only schemes. The study also identifies persistent challenges related to program awareness and take-up among non-participating firms. Based on cross-economy evidence, the report highlights good practices and provides policy recommendations to strengthen formalization strategies and promote inclusive and sustainable SME growth across the APEC region.