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Two African women entrepreneurs are discussing a document. A cloth stand is in the background.

Enterprise Formalization

© ILO

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. 

 

Latest news and publications

Insights into ILO Formalize Your Business in Côte d'Ivoire, The Gambia and Senegal
A woman getting a haircut.

Insights into ILO Formalize Your Business in Côte d'Ivoire, The Gambia and Senegal

Charting a New Path: Stakeholders Validate Blueprint for Women's Entrepreneurship Empowerment in Nigeria
Stakeholders validation workshop convened in Abuja, Nigeria

Charting a New Path: Stakeholders Validate Blueprint for Women's Entrepreneurship Empowerment in Nigeria

Key resources

Enterprise Formalization: An Introduction
An African lady stands by a rack of children's clothes

Enterprise Formalization: An Introduction

Enterprise Formalization: Simplifying and facilitating business start-up and compliance
A female and a male food shop workers stand by food racks

Enterprise Formalization: Simplifying and facilitating business start-up and compliance

Enterprise Formalization: Tailored registration, tax and social security requirements for MSEs
A female shop owner in her shop and smiles

Enterprise Formalization: Tailored registration, tax and social security requirements for MSEs

Theory of Change: Enterprise formalization for decent work
A female fruit seller in front of her fruit stand.

Theory of Change: Enterprise formalization for decent work

R204 - Transition from the Informal to the Formal Economy Recommendation, 2015
A person signing a document.

R204 - Transition from the Informal to the Formal Economy Recommendation, 2015

A double transition: formalization and the shift to environmental sustainability with decent work
Banner of the Just Transition Pavilion at COP28

A double transition: formalization and the shift to environmental sustainability with decent work