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Integration into formal enterprise space: Challenges and opportunities for informal sector entrepreneurs

Author

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  • KOSHY, PERUMAL

Abstract

A vast majority of micro and small enterprises (MSEs) operate in an informal enterprise space, functioning without the required legal and regulatory approvals, notwithstanding crucial role that they play in job creation, poverty alleviation, exports, and regional economic development. Living in an informal enterprise space is not a choice, but forced reality brought on by regulatory burdens, complex compliance structures, and an inefficient and slow-moving government system. This article looks at the informal MSME sector in terms of the challenges and opportunities on its route to formalization. It highlights some of these important aspects, which facilitates the transition into formal enterprise space. IT has provided inputs resulting from interactions with entrepreneurs, associations, and NGOs working in the informal MSME space. The study was also supplemented by secondary source materials. Some of the sectors that have been evaluated are waste management and recycling, last-mile public transport connectivity operators, handloom weavers, potters and street food vendors.

Suggested Citation

  • Koshy, Perumal, 2019. "Integration into formal enterprise space: Challenges and opportunities for informal sector entrepreneurs," MPRA Paper 95346, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95346
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    File URL: https://mpra.ub.uni-muenchen.de/95346/1/MPRA_paper_95346.pdf
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    References listed on IDEAS

    as
    1. World Bank, 2018. "Doing Business 2018," World Bank Publications - Books, The World Bank Group, number 28608, April.
    2. Koshy, Perumal & Prasad, V.N, 2007. "Small and Micro Enterprises: A tool in the fight against poverty," MPRA Paper 22827, University Library of Munich, Germany.
    3. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
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    Cited by:

    1. Koshy, Perumal, 2019. "India’s entrepreneurship policy: Future tasks and vision," MPRA Paper 97830, University Library of Munich, Germany.

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    More about this item

    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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