Informal Sector Dynamics in Urban Mauritius: Insights and Challenges for Business Engagement

Informal sector dynamics in urban Mauritius are critical to understanding economic growth and poverty reduction strategies. A mixed-methods approach combining qualitative interviews with survey data was employed to gather insights from urban entrepreneurs in Mauritius. The informal sector comprises approximately 30% of Mauritian GDP and faces significant regulatory barriers, particularly around access to credit and insurance products. Despite challenges, the potential for growth within the informal economy is substantial with targeted interventions by government and financial institutions. Policy makers should prioritise streamlining regulations and enhancing access to finance for small businesses in urban areas of Mauritius.