GHANA’S URBAN INFORMAL SECTOR: PERCEPTIONS, ATTITUDES AND CHALLENGES
Abstract
There is a rising interest in the informal sector the world all over emanating from the reality
that the sector houses a greater share of the active labour force. The informal sector of
Ghana’s economy is estimated to provide employment for approximately 80% of the active
workforce. After over 50 years of independence, Ghana is struggling to grow and transform
its informal sector as it still operates on rudimentary methods making the future very
precarious. The study adopted the qualitative approach and sought to examine the
perceptions, attitude as well as the realities and challenges of the urban informal sector with
the Ghana National Association of Garages (GNAG) and the National Association of
Beauticians and Hair Dressers as a case study (NABH).
Findings of the study indicated that, the urban informal sectors absolves the academically
weak or people who perceive themselves as weak academically. Perception amongst the
urban informal sector is that, formal sector employment is rewarding than informal sector
employment, operators don’t see themselves as entrepreneurs and commits a lot of errors in
their operations. This explains some of the reasons for the stunted growth and the limited
transformation experienced in the sector. However, there is still hope or the sector if efforts
are made to regularize the sector through the data capturing, encouraging the formation of
vibrant and registered associations, reorientation of the perception of the operators through
capacity building and training whilst creating the necessary conducive micro and
macroeconomic environment for their operation.
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