Most micro-and small entrepreneurs assume that formalization penalizes businesses and only benefits the government. The
images below show some examples of the importance and benefits of formalizing your business..
Modou thinks that formalization is not good for business. Let us see what happened to him.
Access to public contracts
Formalizing your business gives you the opportunity
to bid for public contracts as it becomes eligible.
With a major trader from the city
Formalization allows you to do business with large
suppliers as they prefer formalized partners.
In a local bank
Formalization allows you to establish strong
partnerships with banks and benefit from their
services.
Purchasing a piece of land in the name of the
business
Formalization allows you to make investments in the
name of the company, which will be more credible in
the eyes of partners.
In addition to these advantages that Modou cannot access because his business is not formalized, formalization may allow
you to:
X Gain access to social security for you as a business owner, for your family and/or for your employees.
X Motivate your employees and make them more productive by providing them a formal job.
X Contribute to the development of your community, since your government can spend more money on public services
such as roads, telecommunication, social, and other services
X Become a member of an organization that promotes the interests of small businesses such as The Gambia Chamber of
Commerce (GCCI) or an employer/business organization, or a women’s business association, which can advocate for a
better business environment and for the removal of barriers facing small businesses.
X Gain easier access to financing and public procurement / markets.
X Open a business bank account.
X Receive government support in the event of a widespread crisis requiring business support measures.
Every company works for the well-being of its owner and employees. Therefore, abiding by a number of work-related rules is
important in a formalized business.
