From the Informal to the Formal Sector: Micro-enterprises in a developing economy – research in progress

Abstract

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. Little is known about the process of growth from "survival" entrepreneurship to ongoing participation in the formal economy. A number of the entrepreneurs who participated in this research had made substantial gains in both a psychological and business sense in a period of two years. The methodology is qualitative and longitudinal over a two year period.