The Role of Micro and Small Enterprises (Mses) in Reducing Informal Employment In Angola

Abstract

According to the data analyzed in the survey, the informal sector has a strong representation in the Angolan economy, with around 80.4% by 2023, according to data from the employment report prepared by the National Statistics Institute (INE). Informality predominated in rural areas (94.4%), among women (89.5%) and among young people aged 15-24 (93.3%). In terms of gender, the rate of informal employment in the non-agricultural sector was estimated at 59.7%, with women having the highest rate at 77.5%, compared to 44.8% for men. This data shows the urgency of formalizing employment in the economy, in order to guarantee the sustainability of the population. It should be noted from this research that the informal sector is growing strongly in Angola, due to the inability to absorb labour in the job market, and the constant struggle for families to survive, The formalization of the informal sector via MSEs could be a solution, as they are companies that are very easy to adapt to and also have a very traditional approach to management, but with the innovation and technology component, with a focus on training entrepreneurs, they could be an instrument for reducing poverty, youth unemployment, and guaranteeing a sustainable future for the country's population. This research opted for the descriptive method, with a mixed quantitative and qualitative approach, based on an exploratory study using documentary data collection from various statistical reports, and as a data processing tool, Microsoft Excel was used.