Formalisation of Entrepreneurship in the Informal Economy in Sub-Saharan Africa and the Role of Formal Institutions: An Analysis of Ghana’s Experience

Abstract

Informal entrepreneurship has been for a long time a major lifeline for many living in rural and urban economies in developing countries especially in sub-Saharan Africa and more particularly Ghana. Formalising the informal economy has become prominent within development circles but there has been no clear policy direction from the formal institutions in terms of their role in formalising informal entrepreneurship. This chapter seeks to evaluate critically the role of formal institutions in formalising entrepreneurship in the informal economy in Ghana. Formal institutions are seen as strategic leaders in this endeavour but they are also perceived as enemies of formalisation since they profit from the current bureaucratic impediments as informal entrepreneurs try to formalise their operations.