Tang, Y.K. and Konde, V. (2018)
The informal economies of developing countries are estimated to account for as much as 50% of total non-agricultural activities and between 40-60% of their GDP2. In sub-Saharan Africa (SSA), the informal sector accounts for over 50% of GDP, 80% of total labour force and up to 65% of non-farm jobs. A critical component of informal economy is composed of informal firms, which account for a substantial share of the employment and business activities of the informal economy. This sizable, enduring and apparently growing segment of firms in developing countries has significant impact on the livelihood of many people and the productivity and growth of the economy.
Decades of research have enriched our knowledge of the characteristics of the informal sector and its actors. However, informal firms are highly diverse and heterogeneous in nature and many of their attributes are said to be context-specific. Societal and economic development has also brought constant changes to the sector. Continuous efforts to obtain and update empirical evidence are needed to unveil attributes of informal firms in different country contexts, keep our understanding afresh and hence enable fuller pictures to be established. These motivate our survey.
This output is the first in the series to share findings derived from our survey conducted in Zambia, a landlocked country in the southern part of Africa. Here, we present some results relating to four im-portant aspects for understanding the attributes and activities of informal firms operating in the coun-try. These four aspects are: 1) Registration Status and Intention; 2) Size and Operating Location; 3) Worker Characteristics; and 4) Informal-Formal Business Linkages.