Economic informality is the biggest obstacle in Peru’s formal business environment, particularly for its largest actors: micro, small, and medium enterprises (MSMEs). As such, current levels of informality threaten the sustainability of Peru’s formal labor force and enterprises. Two case studies of the most important hybrid clusters, The Gamarra Market and Villa el Salvador and Villa Maria del Triunfo, in Lima illustrate the ways in which the increasing trend towards greater informality impedes entrepreneurial competitiveness. Financial Inclusion forms the basis for a gradual, dynamic conversion to full economic citizenship.
This thesis finds that there is a unique opportunity to build formal relationships between those in the informal sector and formal financial institutions through mobile technology. Mobile financial ecosystems can allow for sectoral strategies to not only achieve financial inclusion but also promote and incentivize economic formalization in the long-term.
2013 Thesis from Georgetown School of Foreign Service Center for Latin American Studies Library: