Using Household Surveys and Specialized Enterprise Surveys to Measure Informal Enterprises

This paper compares two widely used methods for surveying informal enterprises: household surveys, which collect data on enterprises through household interviews, and area-based enterprise surveys, which directly target businesses in specific geographic areas. By implementing both survey approaches simultaneously in two urban centers in Ghana, this study examines key differences and similarities in the characteristics of informal enterprises across these cities. The analysis reveals substantial variation in estimates of the number of informal enterprises between the two methods, with the household survey approach reporting a significantly higher count. The paper explores potential reasons for these differences, focusing on design and implementation factors. The findings also suggest that both survey methods yield consistent statistics for characterizing informal businesses and identifying factors that drive their performance. Characteristics such as bank account ownership, sector of operation (retail), phone usage, and operating in a fixed premise outside the household are associated with higher productivity across both surveys.