From the Informal to the Formal Sector: Micro-enterprises in a Developing Economy – Research in Progress

Dalglish, Carol L. (2007) From the Informal to the Formal Sector: Micro-enterprises in a Developing Economy – Research in Progress. In Gillin, L. Murray (Ed.) 4th AGSE International Entrepreneurship Research Exchange 2007, 6 - 9 February, Brisbane, Australia.


Small and micro-enterprises play a significant part in most economies.However, in developing countries these enterprises have tended to be looked at from a development, or poverty alleviation perspective, rather than as potentially growing businesses. This paper explores the possibility of micro-enterprises in developing economies moving from the informal to the formal sector - what this actually means and the process involved.

The purpose of this paper is to document the activities of a group of micro-entrepreneurs in Beira, in Central Mozambique, who received micro-financing to establish or grow their micro-enterprises, all of which were in the informal sector, and to examine these enterprises in terms of their potential for long term success. This provides a sample of a population that is being recognised as very important in the development of African economies, particularly where there are high levels of extreme poverty. The paper also proposes a methodology for monitoring the development of informal businesses in developing economies in Africa and identifying the critical factors in the transition from informal to formal, and from survival entrepreneurship to a sustainable business.

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ID Code: 12952
Item Type: Conference Paper
Refereed: Yes
Additional URLs:
Keywords: Micro, enterprises, Developing Economy, Entrepreneurship
ISBN: 9780980332803
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Divisions: Current > Research Centres > Australian Centre for Business Research
Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2007 (please consult author)
Deposited On: 10 Mar 2008 00:00
Last Modified: 03 Mar 2011 05:44

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