Enterprise Formalization

The incidence of informal enterprises is high, particularly in countries where the informal economy provides a primary source of livelihood for people who cannot enter the formal economy. Informal enterprises are often characterized by low productivity and decent work deficits, they do not generate public revenues and they tend to engage in unfair competition with formal enterprises.

The ILO conducts research and provides advisory services to constituents to facilitate enterprise formalization, for example through appropriate and well-coordinated legislation, policies and compliance mechanisms. This is combined with direct measures to support enterprise formalization, such as business development services and measures that make business registration cheaper, easier and more attractive. Our work contributes to the SDGs of the 2030 Agenda, and builds on ILO Recommendation 204 concerning the Transition from the Informal to the Formal Economy, adopted by the ILC in 2015. 

• ILO Micro, Small and Medium Enterprises Branch
• Women's Entrepreneurship Development