Microenterprise Marvels: Exploring Determinants of Growth in the Republic of Congo

Abstract

The informal sector has emerged as a formidable and enduring force within the economies and labor markets of various developing and even some developed countries, underscoring its growing significance (Mbaye et al., 2014; Marchesnay, 2015). Notably, Nkakleu and Ali (2016) highlight that the economies of many African nations are substantially influenced by the informal sector, characterized by a prevalence of microenterprises that wield considerable influence in the socio-economic landscape (Mbaye et al., 2014). These microenterprises, often catering to diverse segments of the population, play a pivotal role in poverty-stricken areas, acting as providers of essential goods and services. Crucially, these enterprises serve as catalysts for job creation, thereby contributing to poverty alleviation and playing a significant role in the broader developmental trajectory of a nation. Liedholm and Mead (2013) emphasize the multifaceted contributions of micro and small enterprises, asserting their impact on household income improvement, heightened well-being, enhanced self-confidence and empowerment, provision of social and political stability, and the reshaping of income distribution. Echoing this sentiment, Julien and Marchesnay (1994) assert that microenterprises often stand as the primary source of employment and catalysts for economic renewal. Understanding the nuances of the informal sector, especially the prevalence of microenterprises, becomes imperative for devising effective policies and interventions to harness its potential for socioeconomic development. This study aims to delve into the intricate dynamics of the informal sector, with a particular focus on microenterprises, exploring their role in poverty alleviation, job creation, and overall national development. By examining the multifaceted contributions and challenges faced by microenterprises, this research seeks to provide valuable insights into the complex interplay between the informal sector and broader socio-economic development.