New NJD Blog: How the interplay between large and small informal firms affects jobs in West Africa
The latest DPRU commissioned blog for the World Bank Jobs and Development Group: "How the interplay between large and small informal firms affects jobs in West Africa" Written by Ahmadou Aly Mbaye's, Nancy Claire Benjamin, and Stephen Golub, was published on 4 March 2015.
Understanding the heterogeneity of the informal sector is crucial for designing appropriate policies. The existence of successful, large, informal firms is testimony to the entrepreneurial potential of West African economies. This dynamism is throttled, however, by weak business climates and lack of enforcement of regulations, which encourage and allow large informal operators to operate with near impunity. It also impacts the jobs picture in these countries. Governments should promote policies that assist small informal firms to improve productivity and raise incomes while enforcing fiscal and regulatory obligations for large informal actors.