The Informal Sector (IS) has contributed immensely to the economic growth of Nigeria. Around 7 out of every 10 active businesses in Nigeria are in the informal sector, and in combination, they employ 80% of all persons working in the private sector. The informal sector is so called because the business enterprises are not regulated or registered by the government at all levels (Federal, State or Local), and they typically operate on a small scale. The Nigerian informal sector has become robust in recent decades because many educated and experienced entrepreneurs operate therein.
The high entry rate into the informal sector has prompted extensive competition, which has created the necessity for each enterprise to improve or change the way they do business. Innovation occurs when an enterprise makes changes in what it does or how it does it. With the understanding that innovation is important for competitiveness, we set out to measure innovation in the informal sector. We have implemented a survey of innovation in the formal sector since 2008 but this is the first time we will do it in the informal sector. Following South Africa, Nigeria is now the second African country that has started to systematically track innovation in its informal sector in Africa….
