Challenges of formalizing informal smes in the telecommunications sector in the democratic republic of congo| International Journal of Innovative Science and Research Technology

Challenges of Formalizing Informal SMEs in the Telecommunications Sector in the Democratic Republic of Congo

Authors : Glodie Mamboti Mukwasandi; Dorcas Ndomba Mukundi; Eunice Bombe Diakuisa; Joel Kabeya Nsaka; Ezekiel Kipey Ezekiel Wise; Ronald Kadima Muamba; Joel Bunduki Kambulu; Annie Muakana Mizangi

Volume/Issue : Volume 10 - 2025, Issue 11 - November

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DOI : https://doi.org/10.38124/ijisrt/25nov1046

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Abstract : This study, conducted within the framework of the issue of formalizing informal SMEs in the telecommunications sector in the DRC, and considering the country's current economic situation, highlights the importance of increasing economic revenue. This study presents itself as a tool that can enable authorities to regularize the informal sector. Its objectives are to demonstrate the means of formalizing SMEs in the informal sector and to identify the limitations of this sector. To arrive at these results, we opted for a hypothetico-deductive (abductive) and analytical methodology, drawing on various research techniques to achieve our objectives. Following our investigations, we understood that many SMEs would like to join the formal economy, but it presents numerous barriers to entry in terms of processes. This is considered the major cause of the formalization problem and prevents the State from mobilizing more revenue to address its various challenges. Therefore, it is recommended that the State regulate this sector through a regulatory authority and facilitate the processes for obtaining the necessary documents to enable SMEs to establish themselves in the formal economy.

Keywords : Small and Medium-Sized Enterprises, Informal and Formal Sectors, Formalization, Economic Development, Telecommunications.

References :

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Web References

This study, conducted within the framework of the issue of formalizing informal SMEs in the telecommunications sector in the DRC, and considering the country's current economic situation, highlights the importance of increasing economic revenue. This study presents itself as a tool that can enable authorities to regularize the informal sector. Its objectives are to demonstrate the means of formalizing SMEs in the informal sector and to identify the limitations of this sector. To arrive at these results, we opted for a hypothetico-deductive (abductive) and analytical methodology, drawing on various research techniques to achieve our objectives. Following our investigations, we understood that many SMEs would like to join the formal economy, but it presents numerous barriers to entry in terms of processes. This is considered the major cause of the formalization problem and prevents the State from mobilizing more revenue to address its various challenges. Therefore, it is recommended that the State regulate this sector through a regulatory authority and facilitate the processes for obtaining the necessary documents to enable SMEs to establish themselves in the formal economy.

Keywords : Small and Medium-Sized Enterprises, Informal and Formal Sectors, Formalization, Economic Development, Telecommunications.