Impact of informality on formal businesses in the textile sector of the Gamarra Commercial Emporium – 2023

Abstract

The objective of this study was to analyze the impact of informality on the formal businesses of the Gamarra Commercial Emporium-2023. Thus, the methodology used in the research was a basic type with a qualitative approach, using an approach that is based on case studies, it is worth mentioning that the level is descriptive and the interview was used as a data collection tool. Regarding the interview guide, it was applied to five micro-entrepreneurs from the Damero Gallery, which is located in Gamarra, and the documentary analysis that was achieved thanks to the interviews that the owners of each business gave us. All this set of elements has contributed to reaching the conclusion that informality does have a negative impact on the businesses of formal merchants, since on repeated occasions they were forced to have to reduce the prices of their garments to make it more accessible for customers so they can buy it. Likewise, they believe that it is quite unfair that there are no drastic sanctions for street vendors and consider it appropriate that they receive training with the intention of guiding them to contribute accordingly, it was evidenced that many of these are submerged in informality due to lack of knowledge. Persuasion was also contrasted and the good treatment they give to consumers is a fundamental piece, because with this they can display their products correctly and indicate the quality of each garment.