Integration into formal enterprise space: Challenges and opportunities for informal sector entrepreneurs

A vast majority of micro and small enterprises (MSEs) operate in an informal enterprise space, functioning without the required legal and regulatory approvals, notwithstanding crucial role that they play in job creation, poverty alleviation, exports, and regional economic development. Living in an informal enterprise space is not a choice, but forced reality brought on by regulatory burdens, complex compliance structures, and an inefficient and slow-moving government system. This article looks at the informal MSME sector in terms of the challenges and opportunities on its route to formalization. It highlights some of these important aspects, which facilitates the transition into formal enterprise space. IT has provided inputs resulting from interactions with entrepreneurs, associations, and NGOs working in the informal MSME space. The study was also supplemented by secondary source materials. Some of the sectors that have been evaluated are waste management and recycling, last-mile public transport connectivity operators, handloom weavers, potters and street food vendors.