Unpacking the relationship between digitalization and formalization among micro-entrepreneurs in an emerging market

Key Points

• Digitalization significantly influences formalization among micro-entrepreneurs, leading to improved business practices and organization.
• The analysis highlights that micro-entrepreneurs who adopt digital tools experience better regulatory compliance and efficiency.
• Observational analysis across various sectors shows that digitalization fosters stronger formal business structures in emerging markets.
• These findings suggest that promoting digital tools could drive economic growth in micro-enterprise settings, highlighting a development opportunity.