Resources on Cooperatives and the Informal Economy
Formalization of the Informal Economy
Workers in the informal economy are mostly involved in micro and small enterprises. In the majority of cases they are unprotected and have no formal recognition. They operate as individuals or in small groups, have no access to financial services, nor do they have representation or voice. They are susceptible to all kinds of risks and their transition from informality to formality is slow and dreary. Cooperatives enable formalization by transforming what are often marginal survival activities into legally protected work, fully integrated into the mainstream economy.