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Informal economies rule half the world

Let's not forget the majority of the poor actually have jobs or are entrepreneurs.

Photo of DeletedUser
4 8

Written by DeletedUser

About 60% of Colombia's economy is informal. Which explains the low participation in health plans.

Here's a thought: when you run informal business, you can't really make use of the normal legal system, once you have a business related issue. You could, but that probably means you have to give up your illegal business or pay a huge fine for evading taxes. At least, that's the case where I come from (the Netherlands). The leaves a void for violent crime to enforce people to stick to business agreements.

When starting social business in a largely informal economy, this will can be of importance.

And let's not forget that the majority of the people in Caldas have money to spend: they can be the target group of a new product/service just as well as any other. On top of that, I think there must be a huge number of entrepreneurs whom's experience can be of great value to any social business solution.


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Photo of Luz Gallo

It's a good point you bring up. The informal business is quite popular among the low-income communities because many of those people come from the countryside and doesn't have the means to get formal job or start a formal business.
But instead of eliminating this type of business, many Colombian local goverments have design some strategies to include this people into the system. Like the case of the modules for the street sellers. (, were the goverment design a module for this traders that invaded the public space and generated mobility problems.

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