INCENTIVES FOR MEMBERS OF THE

Date
2011-05-05
Authors
Macaringue, Doris Afonso Nhone
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Abstract
The informal sector in Mozambique has grown quickly especially since 1992 when many people migrated from the rural to the urban areas where they were involved with agriculture during the civil war. Once in the urban areas, they ran small businesses as a way of subsistence. Both Government and Municipalities are aware of the situation and are passing laws and regulations to help this sector perform better. The implementation of all regulation and laws are not readily accepted by the traders and there are concerns about the procedures to be followed by the traders. The purpose of this research is to establish why informal traders fail to operate in the space provided for them by Government which is intended to encourage the traders to undertake their activities in appropriate spaces. In an attempt to understand the phenomenon, both quantitative and qualitative methods were used to answer the questions, and to test the hypotheses. Broadly the traders are willing to move to the space designated by the Municipality and also to comply with the rules and regulations from the Ministry of Trade and Industry. However, the Municipality should provide better conditions in the designated spaces to attract traders and the law needs to be more widely publicized and disseminated so that traders are aware of current legislation. Better communication between Government and Municipality with the traders is required to increase their awareness of the rights that assist them and their knowledge of the rules, policies and procedures they have to follow once they are operating in this sector.
Description
MM - P&DM
Keywords
Informal business sector, Informal traders
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