COVER -- FOREWORD -- CONTENTS -- NOTE ON THE AUTHORS -- ACKNOWLEDGEMENTS -- ABBREVIATIONS AND ACRONYMS -- EXECUTIVE SUMMARY -- PART ONE -- 1 INTRODUCTION -- The concept of sustainable enterprise -- A new role for enterprise in society: The marketeconomy and globalization -- The diversity of enterprise -- 2 EVOLVING AND CONTEMPORARY APPROACHES TO ENTERPRISE DEVELOPMENT -- Targeted enterprise-level interventions -- The business-enabling environment (BEE) -- Towards systemic competitiveness -- Market failures -- Government- and donor-supported enterprisedevelopment -- 3 CREATING OPPORTUNITY FOR SUSTAINABLE ENTERPRISE: BASIC CONDITIONS -- Good governance and social dialogue -- Equity and economic and social inclusion -- Macroeconomic stability and sound management ofthe economy -- Physical infrastructure -- Responsible stewardship of the environment -- Society and culture supportive of enterprise -- 4 CREATING WEALTH AND DECENT WORK THROUGH COMPETITIVE ENTERPRISES AND NATIONS -- Productivity - The key to competitiveness -- Measuring and evaluating competitiveness -- The role of governments: Policy and institutional issues -- 5 THE REGULATORY AND LEGAL ENVIRONMENT: ISSUES AND POLICIES -- Good and bad regulations -- Measuring and evaluating the cost of doing businessand interpreting results -- Regulatory impact assessment (RIA) tools -- The special challenges facing the micro- and smallenterprise (MSE) -- Strategies for labour law enforcement inmicro- and small enterprises (MSEs) -- 6 SUSTAINABLE INTEGRATION OF MARKETS THROUGH TRADE AND VALUE CHAINS -- Trade and sustainable economic integration -- Opening up opportunities for micro-, small andmedium-sized enterprises via value chain upgrading -- Fair trade and more equitable value chains -- 7 THE ROLE OF ENTERPRISE IN SOCIETY -- The economic and social importance of enterprises.

Corporate social responsibility (CSR) -- Systems of social auditing, monitoring andcertification -- The role that enterprises can play in improving governance, promoting human rights and reducingpoverty -- 8 FINANCIAL AND PHYSICAL INFRASTRUCTURE AND SERVICES -- Making financial markets work better -- Socially responsible investment (SRI) -- Physical infrastructure in support of sustainable enterprises -- Types and scale of infrastructure -- The size, scale and interconnectedness of enterprises -- New and emerging sectors favourable to enterprise development -- Infrastructure financing mechanisms thatsupport sustainable enterprises -- Leveraging infrastructure investments to promotesustainable enterprises and development: The ILO'scomparative advantage -- 9 HUMAN RESOURCES: INVESTING IN PEOPLE -- The growing importance of investing in people -- The importance of good workplace practices -- Occupational safety and health (OSH) -- A skills- and knowledge-based approach toemployability -- 10 SOCIAL PARTNERS, SOCIAL DIALOGUE AND TRIPARTISM -- The potential contribution of workers' and employers'organizations -- Democratic governance -- Economic efficiency -- Social equity -- Conditions for strengthening organizations -- PART TWO -- CONCLUSIONS -- ANNEX -- REFERENCES -- INDEX -- Boxes -- Box 1.1 The challenge of promoting enterprise - the importance ofthe business-enabling environment -- Box 2.1 ILO: Integrating decent work into entrepreneurship development -- Box 2.2 What is the investment climate? -- Box 2.3 What is MMW4P? -- Box 2.4 How markets can enhance lives and enable sustainability -- Box 2.5 Credit, mobile phones and making markets work for the poor -- Box 2.6 Principals, agents, adverse selection and moral hazard -- Box 2.7 Supporting women micro- and small-scale entrepreneurs -- Box 2.8 ILO success stories in small enterprise development.

Box 2.9 Challenges for effective public-private dialogue for investment climate/business-enabling environment reform -- Box 3.1 The rule of law and the importance of property rights -- Box 3.2 Creating a strong macroeconomic environment for enterprise formation and growth -- Box 3.3 The spirit of enterprise -- Box 3.4 Highlights from the Global Entrepreneurship Monitor -- Box 4.1 Collective bargaining, productivity and competitiveness -- Box 4.2 Competitiveness - Adding up the real costs of cheap labour -- Box 4.3 What makes Switzerland so competitive? -- Box 4.4 Competitiveness and stages of economic development -- Box 4.5 The Celtic Tiger: Making Ireland a competitive place to dobusiness -- Box 4.6 Investment compacts -- Box 4.7 Workforce Innovation in Regional Economic Development(WIRED) -- Box 5.1 Some prescriptions for governments, donors and other stakeholders involved in the business-enabling environment -- Box 5.2 Regulatory firewalls -- Box 5.3 Doing business - Understanding what it really means -- Box 5.4 Insufficient representation of micro- and small enterprises(MSEs) -- Box 5.5 Awareness campaign by the ILO -- Box 6.1 The principles of fair trade -- Box 6.2 The Ethical Trading Initiative - Base code -- Box 6.3 Value chains - Linking international business with poverty reduction -- Box 7.1 Corporate governance, citizenship and social responsibility -- Box 7.2 The Global Compact -- Box 7.3 The paradox of plenty -- Box 7.4 The Extractive Industries Transparency Initiative (EITI) -- Box 7.5 Sustainable enterprises creating sustainable societies through applying core business competencies to halve the number ofpeople affected by hunger -- Box 8.1 The Nobel Prize - Microfinance for peace -- Box 8.2 What is social finance? -- Box 9.1 The ILO's GEA: policy challenges in skills development.

Box 9.2 Introducing change through trust and cooperation in the United Kingdom -- Box 9.3 Successful industrial development and a positive work environment in Mozambique -- Box 9.4 Better enterprise performance and better occupational safety and health - The brassware industry clusters in Moradabad, India -- Box 9.5 Integrating workplace learning into national qualifications systems in Singapore -- Box 9.6 Australian Structured Workplace Learning Programme -- Box 10.1 Examples of social dialogue fostering sustainable enterprises -- Box 10.2 Clothing cluster upgrading in Brazil -- Box 10.3 Trade unions reaching out to the informal economy -- Tables -- Table 2.1 Evolving approaches to enterprise development - The three paradigms -- Table 4.1 The WCY and GCR overall rankings -- Table 5.1 Making and maintaining good regulatory policy -- Table 7.1 The business case for addressing environmental and social factors in enterprise operations -- Table 7.2 Action and prioritization in CSR -- Table 10.1 Market-complementing functions of business associations -- Figures -- Figure 1.1 An integrated approach to sustainable enterprise development -- Figure 1.2 Informality thrives in poorer countries' approach to sustainable enterprise development -- Figure 1.3 The world economic pyramid -- Figure 1.4 SMEs become more important as countries become wealthier -- Figure 3.1 Most frequently reported major obstacles to firm operation in developing countries -- Figure 3.2 Practical steps for environmental policy-making -- Figure 3.3 Basic conditions creating the opportunity for sustainable enterprises -- Figure 4.1 Internal and external influences on productivity -- Figure 4.2 Finance, bureaucracy, corruption and other problematic factors for doing business in Mozambique -- Figure 4.3 Crime and theft in Jamaica and other problematic factors for doing business.

Figure 4.4 Bureaucracy, tax and other problematic factors for doing business in Japan -- Figure 4.5 Competitiveness landscape for Germany -- Figure 4.6 Competitiveness landscape for Bavaria, Germany -- Figure 4.7 Local economic development - Strategies and risks -- Figure 5.1 Formality affects policy priorities -- Figure 5.2 Enterprises in low-income countries face more burdens when registering -- Figure 5.3 Most frequently reported major obstacles in the business environment for firms in Eastern Europe and the former Soviet Union -- Figure 5.4 Business environment and constraints on increasing employment in South Africa -- Figure 5.5 Ways of avoiding regulatory compliance in South Africa -- Figure 5.6 Peru - Compliance with labour and social security law by enterprise size, salaried private sector workers, urban areas, 2005 -- Figure 5.7 Pyramid of enforcement strategies -- Figure 7.1 Spheres of impact and influence for sustainable enterprises in international development -- Figure 10.1 Potential contributions of workers' and employers'organizations to sustainable enterprise development.