Practical analytical framework for inclusive entrepreneurial market systems

This framework builds on existing enabling environment tools by explicitly considering the informal, underlying variables that influence the policymaking process and the enforcement of formal rules in a market system.

The framework is a first step in building on existing enabling environment tools and market system theoretical frameworks to provide concrete guidance to USAID Missions, Operating Units, and implementing partners on how to examine the underlying variables in systems that may present barriers or opportunities to private sector engagement efforts. 

The framework:

• identifies and documents a comprehensive set of underlying, systemic variables that influence new business formation, growth, and inclusive gains in market systems
• builds on existing business enabling environment measurement tools and indices that have focused on formal legal/regulatory variables to include a more explicit consideration of the informal, underlying variables that influence the policymaking process and the enforcement of formal rules
• provides practical guidance for USAID and implementing partners to assess systemic factors that may affect project investment outcomes