Formalising the informal sector through association: The case of Kumasi informal bakers' association

Abstract

This paper presents the efforts of the Kumasi Informal Bakers' Association (KIBA) to formalise their activities in order to earn respect and dignity as small-scale business owners. The paper examines the differences between their activities and those of other associations of informal sector workers. The primary data (mainly qualitative) for the analyses in this paper was gathered through focus group discussions and key informant interviews. The analyses focused on the group processes, dynamics and achievements having adopted certain formal ways of running their affairs. The analyses further revealed how these steps have moved the bakers away from the less formal end of the informal sector spectrum towards the formal sector spectrum, although more still needs to be done to qualify them as formal organisations. KIBA has helped build the capacity of its individual members to introduce some degree of formality in their activities and performances. The paper concludes that self-regulation through associations can to some extent effectively formalise the informal sector for sustainable development.