The positive development role of informal economic activity: The case of informal printing firms in Ghana

Abstract

AbstractWe address the potential for the “informal sector” to have a positive role in development, in contrast to portrayals of the sector as marginal, transient, exploitative, and predicated on institutional failings. Our study presents a social practice analysis of the informal printing hub in Accra, Ghana, which operates in this sector characterised by various degrees of non‐compliance with business registration, tax and employment legislation. We profile the operations and strategic practices of its small informal businesses and show how informal sector actors, regulatory institutions and formal business customers navigate the ambiguous terrain that informality brings by co‐constructing informality as a pervasive, near‐legitimate phenomenon. From the case, we argue that the informal economy can achieve not only resilient operational and competitive performance but also a set of positive socio‐economic outcomes. We explore policy responses capable of nurturing its immersive networks by emphasising pragmatic accommodation and flexible dispensation.