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Business Comm Overview Timor-Leste Part One

Business Comm Overview Timor-Leste Part One

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Report on the private sector in Timor-Leste as carried out under the project Peace Dividend Marketplace Timor-Leste (PDM-TL) This report provides a general overview of the local business community.
Report on the private sector in Timor-Leste as carried out under the project Peace Dividend Marketplace Timor-Leste (PDM-TL) This report provides a general overview of the local business community.

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Published by: Peace Dividend Trust on Feb 02, 2011
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03/26/2011

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Business Community inTimor-LestePart One: Overview
October 2009
A Report By:
Peace Dividend 
 Trust
Claire Parois & Scott McCordDili, Timor-Lestetimor-leste@peacedividendtrust.org
 
 
 © Peace Dividend Trust 2009
2
Table of Contents
1. Introduction...............................................................................................................................3
 
2. Geographic Distribution of the Business Community................................................................3
 
3. Types of Business Activity........................................................................................................3
 
4. Size of Businesses....................................................................................................................4
 
5. ‘Age’ of the Business Community.............................................................................................5
 
6. Communications (Internet)........................................................................................................6
 
7. Exportation................................................................................................................................7
 
8. International Trading Partners..................................................................................................7
 
9. Ownership & Management.......................................................................................................8
 
9.1 National Origin.................................................................................................................8
 
9.2 Gender.............................................................................................................................9
 
10. Government Registration......................................................................................................10
 
11. Obstacles Faced by Businesses...........................................................................................10
 
12. About PDT and the Peace Dividend Marketplace Project....................................................11
 
Annex A: Methodology................................................................................................................12
 
Annex B: Data.............................................................................................................................14
 
Annex C: Sectors that Generate Most Requests........................................................................16
 
List of Figures and Tables
Table 1: Businesses Profiled in PDM-TL Online Procurement Database (2007-09)....................3Table 2: Types of Activity in Timor-Leste (2007-09).....................................................................4Figure 1: Micro, Small, Medium & Large Enterprises in Timor-Leste (2007-09)...........................5Figure 2: Establishment of the Timor-Leste Business Community...............................................6Figure 3: Percentage of Businesses Using Internet (2007-09).....................................................6Figure 4: Number of Exporting Business by District in Timor-Leste (2007-09).............................7Figure 5: Number of Businesses Able to Export by Sector in Timor-Leste (2007-09)..................7Figure 6: Number of Companies Importing (2007-09)..................................................................8Figure 7: Number of Companies Exporting (2007-09)..................................................................8Figure 8: Nationalites of Foreign Business Owners in Timor-Leste (2007-09).............................9Figure 9: Nationalities of Foreign Business Managers in Timor-Leste (2007-09).........................9Table 3: Female and Male Entrepreneurs in Timor-Leste..........................................................10Table 4: Obstacles to Business in Timor-Leste..........................................................................10
 
 
 © Peace Dividend Trust 2009
3
1. Introduction
This paper is part one of a two part series. It is intended to provide an overview of the private sector inTimor-Leste. The second will examine the national job landscape. The assessments provided are derivedfrom the database of businesses developed by the international non-governmental organization PeaceDividend Trust (PDT) and its Peace Dividend Marketplace Timor-Leste (PDM-TL) project. This databasewas funded by AusAID and the Government of Norway and built in partnership with the Timor-LesteMinistry of Tourism, Commerce and Industry (MTCI). PDM-TL collected the information profiled in this report between 1 November 2007 and 30 September2009. The findings are intended to improve knowledge of and access to domestic businesses. Duringthis period, a total of 2,384 businesses were surveyed, and an individual profile of each business can befound on the PDM-TL Online Procurement Database
1
at:http://www.BuildingMarkets.org.
2. Geographic Distribution of the Business Community
Of the 2,384 businesses profiled in the PDM-TLdatabase as of 30 September 2009, 63 percent arelocated in the capital, Dili. The remaining 37 percentare more or less evenly distributed among the 12 ruraldistricts, based upon PDM-TL’s visits to each districtcenter in the first two years of operation.
2
 After Dili, the PDM-TL database features largenumbers of businesses in Baucau and Bobonaro, twoof the most populous regional centers. It is important tonote that the number of business per district may notcreate a completely accurate portrayal of each district’seconomical situation. For example, the number ofenterprises in Oecusse may seem disproportionallylarge due to the fact that PDM-TL’s verification teamhad the benefit of more time to conduct interviews inthat district. The following table to the right provides anoverview of the geographic dispersion of thebusinesses included on the database.
3. Types of Business Activity
The PDM-TL team divided the enterprises into 26 goods and service sectors, which are detailed in Table2 below. Each of these sectors was further broken up into sub-categories in order to facilitate the searchprocess on the online procurement database (for instance, construction materials and services weredifferentiated in the ‘Construction and Renovation’ sector).
3
 
1
Caveat: Note that although PDM-TL is making every effort to collect reliable data on all Timor-Leste businesses, the ProcurementDatabase should not be considered a comprehensive resource.
2
In the second year of operation, PDM-TL Verification teams commenced a program of more intense sub-district coverage.
3
A vast majority of surveyed enterprises qualify for more than one category, which explains why the total number of businesses inthe table exceeds the total number of businesses in the study.
 
 
Table 1: Businesses Profiled in PDM-TLOnline Procurement Database 2007-09

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