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Role model sessions significantly increased participant rates of applying for public seed funds and registering business operations formally with tax authorities, contributing to a US$30–US$50 (~15%) increase in monthly household income.
Individualized in-person assistance significantly increased formalization and tax compliance in Rio de Janeiro and Bogotá, whereas virtual messaging and group workshops produced zero statistical impact on formalization rates [8, 10].
The average positive formalization effect of incentive programs in Brazil was driven 100% by high-income entrepreneurs, as small low-productivity firms derived negligible benefit from formalizing.