(2025) Firms through Gang Violence: Business Pulse Survey - Haiti

[page 1] ang Violence rvey -Haïiti €) WORLD BANK GROUP donne bros sinistre pris Presentation to business associations June 10, 2025 [page 2] D 50% increased crime Sales down Investment || orme since 2021 down since 2021 received 44% 66% ra public support experienced Violence- -20% Decline in jobs power outages related losses 10% | | Of support from 40% experienced asset losses the national 6X 54% Adopted digital solutions EEE O oO Of sale spent in safeguarding 76% | | 70 70 equipment O Adopted innovations Were unaware [page 3] Executive Summary - Background: Between 2021 and 2024, it is estimated that Haiti suffered economic losses of approximately -20.7%. While macroeconomic estimates exist, a thorough evaluation of violence's impact on the private sector is lacking. - Business Pulse Survey: February-March 2025 assessment of 719 firms measured violence impacts, damage levels, transmission channels, and response strategies * Key Survey Findings: 1.Heightened crime and violence: 60% of firms report increased crime and 24% ransom payments in their communes. Retail and hospitality most affected. 2.Violence severely impacted businesses: 44% of firms report violence-related losses (>50% in hospitality), with affected firms experiencing 40% asset damage. Declines of 25% in investment, 26% in sales, and 20% in jobs. ICT and hospitality sectors hit hardest. 3.Input and infrastructure disruptions driving decline in sales: Sales decline primarily driven by input costs or supply disruptions (30% of firms). 60% experienced power outages and 50% internet service insufficiencies. ICT and hospitality sectors hit hardest. [page 4] Executive Summary 4. Firm adapted to violence by investing in security, innovating and adopting digital solutions: Over 80% of firms modified operations for safety, with investors allocating 6% of sales to security equipment. 74% implemented innovations and 56% adopted digital solutions, while only 3% relocated from Port-au-Prince. 5. Access to financing emerges as a critical concern: While only 22% face immediate liquidity issues, 26% are in or expect arrears, and 60% already report difficulties securing financing. À [page 5] © © © © Haiti Business Pulse Survey (BPS) - Survey details Focus . . . . . Questionnaire with 9 modules Impact of violence on firms (sales and assets) «Channels of transmission Lean Sr Firm responses ‘ . ‘Government and international community support te and nest à frs : .IMpacts on sales ana employmen Implementation 4.Channels affecting operations 719 businesses (677 by phone or in-person and 42 on-line). 5.Security and Protection In-person interviews done at the request of the respondents. 6.Public policies support February to March 2025 7.Adjustment mechanisms -Mainly micro, formal, domestic-owned and services firms. 8.Investments 9.Trade and GVCs Firms are considered formal if they meet any of the following criterion: lassification f registration with the Ministry of Commerce and Industry (Société anonyme, ISIC classification for société en nom collectif; entreprise individuelle); registration with the Tax sectors Directorate; authorization of Ministries of Health, Justice and Public Security, Survey desian for FCV areas Social Affairs and Labor (MAST); mayor's office (registration of merchants and Concidere à primary & NE eee tbitr deentenette individual businesses), Centre de Facilitation d'investissement (CFI) statements: full attention checks ! ! 5 (registration of investment incentives advantages). ' [page 6] Violence affects firms through multiple channels Heterogeneity \ | Impacts Transitory or | Size | ee Direct indirect Permanent? Productivity business interruptions) (e.g., value chain disruption) Sector Expected or Location unexpected? Others | ‘ | | Firm Responses | [page 7] 64% of firms reported increased crime in their communes Level of crime in a firm's commune: Percent of firms 70 60 50 40 30 20 10 0 Decreased Remained the same Increased Question: To the best of your knowledge, has the level of crime in your commune? Source: World Banks staff calculations based on BPS 7 [page 8] e O e No signs of recovery: sales down 26% since 2021 Change in sales (in %): by Size 0 -5 -10 -15 -20 -25 -30 -35 All firms Manufacturing Retail/Wholesale Others Hospitality ICT/Prof. services Question: Comparing this company/enterprise sales for the last 30 days (before this interview) with June 2021 (assassination of President Jovenel Moise), did the sales? Note: Result are unconditional estimates. Source -World Bank's staff calculations based on BPS : [page 9] O e Nearly 45% of the firms report damages or losses caused by violence since June 2021 Damaged or suffered from stolen assets due to gangs/gang violence: Percent of firms All firms Hospitality Manufacturing ICT/Prof. services Retail/Wholesale Others (0) 10 20 30 40 50 Question: Since June 2021 (assassination of President Jovenel Moise), has this company/enterprise been damaged or suffered from stolen assets due to gangs/gang violence? Source: World Banks staff calculations based on BPS [page 10] Power outages affected 60% of firms, particularly ICT and professional services sectors (70%) (0) 20 40 60 80 Question: In the last 30 days (before this interview), did this company/enterprise experience power outages? D. Sources: World Bank's staff calculations based on BPS. The results are unconditional estimates. [page 11] e e e e Input disruptions seem to be driving sales e cancellations Change in sales (%): by whether sales orders were cancelled o) -5 -10 -15 -20 -25 -30 No, did not cancel sales orders Yes, cancelled sale orders Question: In the last 30 days (before this interview), did this company/enterprise have to cancel any sale orders because there were no inputs for production (they were delayed or interrupted)? Note: Results are unconditional estimates Source -World Bank's staff calculations based on BPS [page 12] Cancelled Orders Accounted for 40% of Sales Percentage share of cancelled sales in total monthly sales: by sector All firms Hospitality Retail/Wholesale ICT/Professional services Manufacturing Others 0 20 40 60 80 Question: What is the percentage of (monthly) sales that those cancelled transactions represent? Notes: Hospitality sector includes accommodation and food services. Results are unconditional estimates. Source -World Bank's staff calculations based on BPS [page 13] e e e e e e .: O e Investing firms prioritized security: 94% purchased equipment O e and 50% hired personnel Type of private security investment: Percent of firms Capital goods for safeguarding firms' security Increased payments for private security personnel Others 0 20 40 60 80 100 Question: Since June 2021 (assassination of President Jovenel Moise), has your company/enterprise made the following private security investments Notes: Capital goods includes: security cameras, remote monitoring, access control systems, Locks and secured storage facilities. Private security personnel payments includes payments to gangs for security, hiring private security companies. Source: World Bank's staff calculations based on BPS. [page 14] Six of ten businesses experience financing difficulties, with manufacturing hardest hit at about 70% Difficulties in accessing finance by sector: Percent of firms 0 10 20 30 40 50 60 Question: Does this company/enterprise currently face any difficulties in accessing finance? Sources: World Bank's staff calculations based on BPS 14 [page 15] : . e oO Top Business Support Needs: New Credit Access (60%) and - oO Security Insurance (33%). Policy support needs of businesses: Percent of firms Access to new credit Insurance against violence/security-related events Collaboration and partnerships opportunities Assistance to access to new clients and markets Wage subsidies 0 10 20 30 40 50 60 Question: What type of support programs either from the government or international organizations would be more important for your business(es) today? Sources: World Bank's staff calculations based on BPS 16 [page 16] Conclusions and policy implications 1.Reconstruction/recovery funding must be dramatically increased: 44% of firms suffered violence, damaged 40% of assets; only 11% repaired. Hospitality and manufacturing worst affected. 2.Economic recovery programs should target hardest-hit sectors: Sales, employment and investment remain 20-30% below 2021 levels, especially in ICT and hospitality. Monthly data shows no recovery. 3.Critical infrastructure requires immediate public intervention: 66% of firms face power outages, 50% internet disruptions, particularly in ICT, hospitality and manufacturing. Supply-constrained firms suffered 30% sales drop. 4.Financial support mechanisms and digitalization and innovation programs need immediate expansion. 60% of firms need credit access, particularly in manufacturing (70%) and 30% require violence-related insurance. Firms respond to violence by digitalizing and innovating. [page 17] € WORLD BANK GROUP Finance, Competitiveness & Innovation [page 18] One in four firms report damages or losses caused by violence since June 2021 Percent of firms that suffered damages/losses since June 2021: Percent of firms that suffered damages/losses in the last 30 days: by sector by sector All firms Hospitality Manufacturing EE . ES CT/Prof. services Manufacturing a BE RS ICT/Professional Services 0 5 10 15 0 10 20 30 40 50 60 Question: LHS: Since June 2021 (assassination of President Jovenel Moise), has this company/enterprise been damaged or suffered from stolen assets due to gangs/gang violence? RHS: In the last 30 days (before this interview), did this company/enterprise experience any losses due to theft, robbery, vandalism, arson on the company/enterprise's premises or from internet hacking or fraudulent internet transagtions? Source: World Banks staff calculations based on BPS [page 19] O + ? About 40% of Firm's Total Assets were Damaged Since June 2021 Percent of damaged assets in total assets by sector (0) 10 20 30 40 50 Question: What was the value of the damaged assets and property at this company/enterprise due to gangs/gang violence since June 2021 (assassination of President Jovenel Moise), including stolen assets and property, relative to the total assets and property of the company/enterprise? 20 Source: World Bank's staff calculations based on BPS [page 20] Only 11% of the damaged losses have been repaired since 2021 Percent of repaired damages by sector 0 2 4 6 8 10 12 14 Question: What is the share of the damaged assets that you have already been able to repair/replace? Source: World Bank's staff calculations based on BPS 21 [page 21] Impact on sales [page 22] e . e O e No signs of recovery: sales still down 26% since 2021 Change in sales (in %): by Size 0 -5 -10 -15 -20 -25 -30 n All firms Manufacturing Retail/Wholesale Others Hospitality ICT/Prof. services Question: Comparing this company/enterprise sales for the last 30 days (before this interview) with June 2021 (assassination of President Jovenel Moise), did the sales? » Note: Result are unconditional estimates. Source -World Bank's staff calculations based on BPS [page 23] Sales dropped by 20% in the last month [Feb/March 2025, particularly in hospitality Change in sales compared to same period last year (in %): by sector 0 -5 10 15 -20 -25 Fe Al firms Retail/Wholesale Manufacturing ICT/Professional services Others Hospitality Question: Comparing establishment's sales for the last 30 days (before this interview) with the same period of last year, did ne are unconditional estimates. Source -World Bank's staff calculations based on BPS FF [page 24] e e e O Medium size companies saw the largest 24% Change in sales (in %): by Size (0) -5 -10 -15 -20 -25 Al firms Micro (0-4) Small (5-19) Medium (20-99) Question: Comparing establishment's sales for the last 30 days (before this interview) with the same period of last year, did the sales Note: Results are unconditional estimates. Large firms(100+) was excluded because there are only 3 large firms in the sample. 25 Sources -World Bank's staff calculations based on BPS [page 25] e e e e Input disruptions seem to be driving sales e e e e cancellations, particularly in manufacturing Cancelled sales order due to input costs/interruptions: Change in sales: by whether sales orders were cancelled Percent of firms (0) -5 & -10 £ +15 Ô -20 -25 fessional services -30 0 5 10 15 20 25 30 35 No, did not cancel sales orders Yes, cancelled sale orders Question: In the last 30 days (before this interview), did this company/enterprise have to cancel any sale orders because there were no inputs for production (they were delayed or interrupted)? Note: Results are unconditional estimates 26 Sources -World Banks staff calculations based on BPS [page 26] Cancellations accounted for about 40% of sales drop Percentage share of cancelled sales in total monthly sales: by sector 0 10 20 30 40 Question: What is the percentage of (monthly) sales that those cancelled transactions represent? Sources World Banks staff calculations based on BPS 27 [page 27] % of Sal Cancelled Orders Accounted to 40% of Sales Percentage share of cancelled sales in total monthly sales: by sector 0 20 40 60 8C Question: What is the percentage of (monthly) sales that those cancelled transactions represent? Note: Result are unconditional estimates. Hospitality sector includes accommodation and food services. Sources -World Bank's staff calculations based on BPS 28 [page 28] O e Only 10% of Firms Cancelled Orders Because of Labor Shortages, Leading to Steeper Sales Declines Cancelled sales order due to insufficient workers: % of firms Change in sales by sale orders cancelled due insufficient : workers -5 & -10 € “15 G -20 Retail/Wholesale _L_L_LULUL_nn- -25 -30 0 2 4 6 8 10 12 14 No, did not cancel sales orders Yes, cancelled sale orders Question: In the last 30 days (before this interview), did this company/enterprise have to cancel any sale orders because there were not enough workers because they were displaced? Note: These are unconditional estimates. Sources -World Bank's staff calculations based on BPS [page 29] Impact on Employment [page 30] e O e e e Employment Declined by 20% since June 2021, particularly in Hospitality and manufacturing Percent change in employment: by Sector 0 -5 -10 -15 -20 -25 -30 All firms Hospitality Manufacturing Others Retail/Wholesale ICT/Professional services Estimates was computed from the following questions: (1) How many paid workers (full-time and part-time) did this company/enterprise have in June 2021 (assassination of President Jovenel Moise)? and (2) How many paid workers (full-time and part-time) does this company/enterprise currently have? 31 Sources: World Bank's staff calculations based on BPS. These are unconditional estimates [page 31] % of kers left d lol Only 20% of workers left due to gang violence- related displacement or relocation Proportion of female employees that left due to Proportion of male employees that left due to relocation or relocation or displacement: by size displacement: by size 25 25 20 20 15 15 10 10 5 5 (0) ° All firms Micro (0-4) Small (5-19) Medium (20-99) All firms Micro (0-4) Small (5-19) Medium (20-99) Question: Since June 2021 (assassination of President Jovenel Moise), what proportion of those former employees left this company/enterprise because they relocated or were displaced due to gangs/gang violence and/or insecurity? 32 Source: World Bank's staff calculations based on BPS [page 32] Impact on Investment [page 33] e O e Investments declined by 25% in 2024 compared to 2021, e e e O particularly in the retail and wholesale sector at 34% Percent change in investments: by Sector 0 -5 -10 -15 -20 -25 -30 -35 All firms Manufacturing Retail/Wholesale Hospitality ICT/Prof. services Others Estimates computed from the following questions: (1) In 2021, how much did this company/enterprise invest in purchase of fixed assets for the firm (fixed assets include: new or used machinery, equipment, software, vehicles); (2) In 2024, How much did this company/enterprise invest in purchase of fixed assets for the firm (fixed assets include: new or used machinery, equipment, software, vehicles). s,urces: Worid Bank's staff calculations based on BPS. These are unconditional estimates 34 [page 34] Firms anticipate to invest an average of 8.4 million HTG (-USS$S64,000) in the next 12 months with the lowest among micro firms Expected future investments (in millions HTG): by Size 20 15 10 ° All firms Micro (0-4) Small (5-19) Medium (20-99) Question: Looking ahead to the next 12 months, what is the approximate value of investment that you anticipate you will make? Source: World Bank's staff calculations based on BPS. These are unconditional estimates 35 [page 35] Trade and Global Value Chains [page 36] Since the start of the gang violence and insecurity in June 2021, O e e only 8% of firms exported directly Percent of firms that sold abroad in since June 2021: by sector AIl Firms Others Retail/Wholesale Manufacturing ICT/Prof. services Hospitality (0) 2 4 6 8 10 Question: Since June 2021 (assassination of President Jovenel Moise), did this company/enterprise make direct exports (i.e. sold products or services abroad without going through an intermediary)? Sources: World Bank's staff calculations based on BPS [page 37] Around 25% of these exporters reported disruptions in logistics due to the violence and insecurity. Exports affected by disruptions in logistics by size: Percent of firms 20 . 2 s 1 : ° All firms Micro (0-4) Small (5-19) Medium (20-99) Question: Since end of 2021, were your exports affected by disruption in logistics and transport because of gang one or Bank's staff calculations based on BPS [page 38] O e About 89% of Import-Dependent Firms Reduced or e e e e Eliminated Foreign Inputs Since June 2021 Percent of firms that sourced their intermediate inputs Change in imported intermediate inputs and raw from abroad material: Percent of firms L ——— BE Decrease but not stopped Retail/Wholesale Remain the same Hospitality 0 5 10 15 20 25 30 (e) 10 20 30 40 50 60 70 Questions: LHS: Since 2021 did this company/enterprise source inputs or materials from abroad directly or indirectly (through a local trader)? RHS: Since the end of 2021, did the company/enterprise’s imported intermediate inputs and raw materials change? Sources: World Banks staff calculations based on BPS [page 39] Utility disruption [page 40] O e e Power outages affected 61% of firms, particularly ICT and e e O professional services sectors (71%) Percent of firms that experienced power outages: by sector 0 20 40 60 Question: In the last 30 days (before this interview), did this company/enterprise experience power outages? Sources: World Bank's staff calculations based on BPS. The results are unconditional estimates. 41 [page 41] Over 50% of firms experienced insufficient internet connectivity for business operations, particularly in ICT/Professional services sectors Percent of firms that experienced insufficient internet connection by sector (0) 10 20 30 40 50 60 70 Question: In the last 30 days (before this interview), did this company/enterprise experience insufficient internet connection for business purposes? Source: World Bank's staff calculations based on BPS #7 [page 42] Financial channels [page 43] Financial liquidity not a major concern. Both internal and external finance available to firms could meet their financial obligations for more than 5 months, especially for medium-sized firms Av. number of weeks firm can pay for its operating costs using internal and external finance available: by size 30 25 20 15 10 5 0 All firms Micro (0-4) Small (5-19) Medium (20-99) Estimate was constructed from 2 questions. (1) As of today, for how many weeks could this establishment continue paying all operating costs and payments (such as payroll, suppliers, taxes or loan repayment) only with immediately available cash reserves (cash on hand and money in bank accounts)? (2) For how many additional weeks this establishment could continue paying all operating costs and payments (such as payroll, suppliers, taxes or loan repayment) relying on external sources of finance that you are certain or close to certain to have access to? 24 Sources: World Bank's staff calculations based on BPS [page 44] Equity financing is the main source of external finance available to enterprises External Source of financing: Percent of firms Sources: World Bank's staff calculations based on BPS Question: What are the external sources of financing used by this company/enterprise since June 2021 (assassination of President Jovenel Moise)? #5 [page 45] 23% of firms need adjustments in their credit or loan repayment terms, and among these, 58% successfully restructured their debt especially those in hospitality sector Percent of firms that needed adjustments in credit and Restructured debts with creditors: Percent of loan repayment terms firms 70 60 50 40 30 0 10 20 30 40 50 60 70 ° No outstanding liabilities Yes No Question: LHS: Since June 2021 (assassination of President Jovenel Moise), has this company/enterprise needed any adjustments in credit or loan repayment terms and/or schedule? RHS: Since June 2021 (assassination of President Jovenel Moise), has this company/enterprise been able to restructure their debts / loans with creditors? 46 Source: World Banks staff calculations based on BPS [page 46] Over 1 in 4 businesses are either in arrears or expects to be in arrears in the next 6 months. This is worse in the hospitality sector (1 in 3 firms) and small and medium sized businesses (approximately 1 in 3 firms). In arrears or expects to fall in arrears in next 6 months. Percent of firms By Sector . By Size 35 5 ICT/Professional services ES (e) 5 10 15 20 25 30 35 ° AII firms Micro (0-4) Small (5-19) Medium (20-99) This estimates is computed from 2 questions. (1) Is this company/enterprise into arrears or had to delay its payments since June 2021 (assassination of President Jovenel Moise)? (2) Is it expected that this establishment will fall in arrears in any of its outstanding liabilities in the next 6 months? Sources: World Banks staff calculations based on BPS 47 [page 47] Around 6 in every 10 businesses surveyed have difficulties accessing finance, especially firms in the manufacturing sector (68%) Difficulties in accessing finance by sector: Percent of firms (0) 10 20 30 40 50 60 Source: World Bank's staff calculations based on BPS Question: Does this company/enterprise currently face any difficulties in accessing finance? ,. [page 48] interest rates and not having guarantee or enough collateral Main difficulties with accessing finance: Percent of firms Bank(s) did not accept loan application p No need for loan - firm has sufficient capital [un Exchange rate risks and dual exchange rate | | Outstanding loans or poor credit history [| (e] 10 20 30 40 50 Question: What are the main difficulties this establishment currently faces in accessing finance? Sources: World Banks staff calculations based on BPS 49 [page 49] Security and Protection [page 50] O e e e e e 64% of firms reported increased crime in their communes Level of crime in a firm's commune: Percent of firms 70 60 50 40 30 20 10 0 Decrease Remain the same Increase Sources: World Bank's staff calculations based on BPS Question: To the best of your knowledge, has the level of crime in your commune? 51 [page 51] One in four firms reported ransom payments by businesses in their commune. Percent of businesses that firms in their commune paid ransom: by sector staff calculations based 0 5 10 15 20 25 on BPS 30 Question: To the best of your knowledge, since June 2021 (assassination of President Jovenel Moise), has any company/enterprise or individual in your commune paid for any ransom to release individual(s)? 92 [page 52] O e e e e e e 16% of firms paid bribes for security protection, especially in the hospitality sector Percent of firms that paid bribes for security protection: by sector 0 5 10 15 20 2: Sources: World Bank's staff calculations based on BPS Question: Since June 2021 (assassination of President Jovenel Moise), has this company/enterprise paid any bribes for security protection? 53 [page 53] e O e e Since June 2021, 55% of firms made investments Percent of firms that have made investments by sector (e] 10 20 30 40 50 60 Source: World Bank's staff calculations based on BPS Question: Since June 2021 (assassination of President Jovenel Moise), has your company/enterprise made any investments? 54 [page 54] .… Of firms making investments, 20% invested in private security and/or insurance Investments in fixed assets: Percent of firms Sources: World Bank's staff calculations based on BPS Question: Since June 2021 (assassination of President Jovenel Moise), has your company/enterprise made any investments? 55 [page 55] 94% of investing firms purchased security equipment (cameras, monitoring systems, access controls), while 50% hired private security personnel. Type of private security investment: Percent of firms Sources: World Bank's staff calculations based on BPS | | h Question: Since June 2021 (assassination of President Jovenel Moise), has your company/enterprise made the following private security investments 56 [page 56] Policie S [page 57] Only 3 percent of firms received public support - though 6.5 out of 719 firms is not statistically significant Policy support received: Percent of firms All firms Others Hospitality ICT/Professional services Manufacturing Retail/Wholesale (0) L 2 3 4 5 Question: Since June 2021 (assassination of President Jovenel Moise), has this company/enterprise received any support from new or existing government programs, or international and domestic organizations’ programs? Sources: World Bank's staff calculations based on BPS [page 58] Only 3 percent of firms received public support Policy support received: Percent of firms Retail/Wholesale (0) 1 2 3 4 5 Question: Since June 2021 (assassination of President Jovenel Moise), has this company/enterprise received any support from new or existing government programs, or international and domestic organizations’ programs? Sources: World Banks staff calculations based on BPS 58 [page 59] Only 10% of Firms Report Receiving Support from the National Government Source of policy support: Percent of firms Sources: World Banks staff calculations based on BPS Question:Where did the support come from? 99 [page 60] Grants Accounted for Half of the Support Type of support received: Percent of firms Sources: World Banks staff calculations based on BPS Question: Did any of these measures involve any of the following: 60 [page 61] O e About 70% of Firms Unaware of Support Programs Reasons for not receiving support: Percent of firms . EE eceived it ne pplication BE 0 10 20 30 40 50 60 70 Sources: World Bank's staff calculations based on BPS Question: Which of the following options best describe the reason why this company/enterprise did not receive any national or local government, international or domestic organization support measures issued in response to the gang violence and insecurity since June 2021 (assassination of President Jovenel Moise)? 61 [page 62] Policy support needs of businesses: Percent of firms 0 10 20 30 40 50 60 70 Sources: World Bank's staff calculations based on BPS Question: What type of support programs either from the government or international organizations would be more important for your business(es) today? ” [page 63] Adjustment mechanisms [page 64] O e e e 36% of Operating Firms Changed Primary Products, Especially in Manufacturing Change in products representing largest sales share: Percent of firms Sources: World Bank's staff calculations based on BPS | | | Question: Did the product or service representing the largest share of this company/enterprise's sales change during the last 6 months? 64 [page 65] Businesses primarily changed operations to ensure immediate safety and address violence-driven market demand shifts Rationale for adopting these changes: Percent of firms Shifts in market demand due to gang violence and insecurity D Challenges in supply chain and logistics Updated management strategy Learning from other firms D Employee suggestions or challenges D | Others bi 0 20 40 60 80 Sources: World Bank's staff calculations based on BPS Question: Which of the following were the main reasons driving the changes this company/enterprise introduced? 65 [page 66] Q O Q Q Q O P Violence Drove 56% of Firms to Digital Platforms, Yet Only 20% o Sales Digital, Lowest in Hospitality Adoption of digital platforms: Percent of firms Percent share of sales using digital platforms by sector @ Started or increased usage of digital platforms Have not started using or increase usage of digital platforms All firms (0) 5 10 15 20 25 Sources: World Bank's staff calculations based on BPS Question: Has this company/enterprise started using or increased the use of internet, online social media, specialized apps, digital platforms, or remote work since January of 2021? 66 [page 67] O e e e e Over 40% of businesses modified marketing and customer relations through new technologies in response to violence Business functions modified through digital technology: Percent of firms Production or service planning Online sales and payment methods Business administration | Production technologies | Supply chain management k (0) 10 20 30 40 Sources: World Bank's staff calculations based on BPS Question: In response to gangs/gang violence (since January of 2021) has this company/enterprise modified any of these business functions through new technology and processes: 67 [page 68] Firms face digital adoption barriers: 33% miss opportunities, others lack financing or certainty Reasons for not adopting digital technologies: Percent of firms It is difficult to comply with regulations nn | Resistance to change from workers Sources: World Bank's staff calculations based on BPS © s d ” Question: What is the main reason why this company/enterprise has not modified any of its business functions or its use of digital technologies? 68 [page 69] le) e e e e e 74% of firms adapted to violence by innovating products/services and expanding markets through new clients and delivery strategies Product or service innovation: Percent of firms Market expansion: Percent of firms @ No, did not expand the market Yes, expanded the market de D No, did not innovate on products/services LL 0 20 40 60 80 Sources: World Banks staff calculations based on BPS Note: These estimates were constructed from the question: Since January of 2021 has this company/enterprise implemented some of the following. A firm has innovation on its product or services if any of the following is true: (1) Introduced new products or services, (2) Improved the quality of existing products or services, and (3) Improved the packaging or branding of products or services. A firm has embarked on market expansion if (1) Started selling to new clients, OR (2) Adopted strategies to continue delivering its products or services in face of violence and insecuritv [page 70] Outline * Introduction | + Descriptive analysis of respondents ° Damages, losses and current operating status * Impact on sales + Impact on employment * Impact on Investments * Trade and GVC ° Utility Disruption * Financial channels ° Security and Protection * Public Policy Support + Adjustment Mechanisms + Conclusions 70 [page 71] Additional slides [page 72] . . « n 4 Micro firms and “Others” sector were overrepresented in the sample Percent of firms: by size Percent of firms: by sector Hospitality @ Retail/Wholesale ICT/Professional. services Manufacturing Micro (0-4) @ Small (5-19) Medium (20-99) Large (100+) @ Others Sources: World Bank's staff calculations based on BPS Others sector include several sectors such as construction and utilities, Admin, support, transport and storage and other services, and other not explicitly mentioned in the questionnäfe. This includes car rentals, beauty salons, crafting, event planning etc. [page 73] Other services and ICT/Professional services sectors were overrepresented in the sample Percent of firms: by subsectors: ICT + Professional services Retail/Wholesale Advanced and other manufacturing Hospitality Admin, support, transport/storage & other services Metallic and non-metallic manufactures Heavy manufacturing Light Manufacturing Traditional manufacturing 0 5 10 15 20 25 30 Sources: World Bank's staff calculations based on BPS 73 [page 74] Majority of businesses surveyed are maturing firms and fully domesti owned Percent of firms: Age Percent of firms: by Foreign ownership Sources: World Bank's staff calculations based on BPS [page 75] Most of the surveyed enterprises are in the metropolitan area of Port-au-Prince and are legally registered Percent of firms: by Legal Registration Percent of firms: by Current location In a different country @ In a different department in Haiti Not legally registered @ Yes, legally registered @ in the metropolitan area of Port-au-Prince Sources: World Bank's staff calculations based on BPS 75 [page 76] Despite the reported damages and losses due to violence and insecurity, 99 percent of surveyed businesses are open which may be due to self-selection into the survey Operating status: Percent of firms Sources: World Bank's staff calculations based on BPS L L _ Question: What is the current status of this establishment? 76 [page 77] Percent that left due to acceptance of parole programs: by size 20 15 10 ° All firms Micro (0-4) Small (5-19) Medium (20-99) Sources: World Bank's staff calculations based on BPS. Large firms (100+ workers) were excluded as there are only 3 eReRtYA IE ice June 2021 (assassination of President Jovenel Moise), what proportion of those former employees left becaus: they were accepted in the Biden Parole Program? 77 [page 78] Average number of workers no longer employed: by size 20 15 10 5 ° All firms Micro (0-4) Small (5-19) Medium (20-99) Sources: World Bank's staff calculations based on BPS. Note: Large firms (100+ workers) were excluded as there are only 3 observations Question: LHS: Since June 2021 (assassination of President Jovenel Moise), how many workers are no longer employed at this company/enterprise? [page 79] However, shortage in water supply seems to be less of an issue compared to power outages, as around 14 percent of businesses reported facing water supply shortages Percent of firms experiencing insufficient water supply: by sector (0) 5 10 15 20 Sources: World Banks staff calculations based on BPS Question: In the last 30 days (before this interview), did this company/enterprise experience insufficient water supply for production? 79 [page 80] Around 22 percent of enterprises sales in 2024 was devoted to investments in fixed assets such as machinery, equipment etc, while 6 percent was invested in private security or business insurance Percent of enterprise sales used in investments: by investment type de D Invested in private security or business insurance (®) 5 10 15 20 Sources: World Bank's staff calculations based on BPS Question: Estimates were computed from the questions (1) What percentage of your company/enterprise's sales in 2024 was invested in the purchase of fixed assets (machinery, equipment, etc.)? (2) What percentage of your company/enterprise's sales in 2024 was invested in private security and/or business insurance? 80 [page 81] Firms located in Port-au-Prince before the crisis: Percent of Relocation outside Port-au-Prince: Percent of firms firms 0 20 F 40 60 80 100 Sources: World Bank's staff calculations based on BPS Question: In response to the gang violence and/or insecurity, has your company/enterprise partially or fully relocated to a different department outside of the metropolitan area of Port-au-Prince or a different country? 81