Gradual shift from informal to formal for MSMEs
There is a huge corpus of work emphasizing the importance of formalization and the persistence of informality in the economy. Representing a major feature of labour markets worldwide, the informal sector consists of activities operating outside the regulatory framework that would potentially add value to tax revenue and the GDP but go unaccounted. A recent estimate suggests that the informal sector still makes up about a third of low- and middle-income countries’ economic activity. The statisticis more glaring for Micro, Small and Medium Enterprises- the informal economy comprises more than 90% of Micro and Small enterprises globally.