Notes on the Informal Sector and Employment Creation in Botswana

Abstract

It is increasingly becoming clear that the role of Small and Medium-scale Enterprises (SMEs) in employment creation, and income generation cannot be over-emphasized especially in Botswana and possibly in other African countries. However, SMEs face many challenges which hinder them from attain their objectives. Despite the challenges, according to the 1999 and 2007 nation-wide informal sector surveys the number of informal businesses increased between. The percentage of informal businesses operated by women increased during those years. Also, the female population in the informal businesses was more than the male population in 1999 and 2007. Self-employment also increased between the two surveys. This paper advices that review of the SME Policy of 1998 should identify strategies for transforming the informal sector businesses to growth and expansion oriented as they are capable of generating employment and income. Also special attention should be on women who dominate the sector.