Nairobi, July 30 -- One of the major reasons why some micro and small enterprises (MSEs) prefer being in the informal sector is fear of compliance with regulatory requirements.
However, failure to comply has unintended repercussions. MSEs operating informally cannot access credit due to lack of information about their existence - Know Your Customer (KYC). Neither can they qualify for lucrative tenders. In summary, they will forever live in the margins of poverty.
It is important that these enterprises that employ the majority in developing countries be assisted to scale and move up the ladder to become formal, sustainable contributors to economic growth.
Digitalisation is the surest bet to change this grim picture for MSEs. Simple reform...