CFPs: Supporting Informal Enterprises Transition Towards Sustainable Growth and Formalization Program (Sierra Leone)

The project aims to identify and address structural barriers related to informality. Under the support of this project, a baseline study examining the challenges facing the informal economy in Sierra Leone was conducted. Subsequently, a National Action Plan for Formalization outlining a formalization approach tailored to the needs and characteristics of Sierra Leone is underway. Aligning with the baseline assessment and the National Action Plan, a research grant scheme has been initiated to expand the knowledge base on the informal sector in Sierra Leone. This research grant scheme also aims to promote research focusing on the specific issues within the informal sector, particularly to improve quality of data that is generally scarce in the Sierra Leone.

Objectives

• While contributing to the overarching goal of supporting the growth and formalization of informal firms, the objectives of this research grant scheme include:
  • Expanding the knowledge base on the informal sector in Sierra Leone.
  • Providing empirical data and insights to inform policies and promote formalization of informal firms.
  • Strengthening research capacity in local academic and research institutions in Sierra Leone

Thematic Areas

• Proposals should fit within the following thematic areas, which are drawn from the findings of the baseline assessments and national action plan for formalization:
  • Data and Methodological Approaches:
    • Addressing data and measurement challenges specific to informality in country specific context
    • Regional disparities and localized characteristics of informality
    • Conducting surveys to better understand the dynamics in the informal economy in Sierra Leone.
  • Sector-Specific Issues of Informality:
    • Economic and social costs of informality within specific (sub)sectors
    • Market research on informality in specific (sub)sectors
    • Representation of women and challenges encountered by young entrepreneurs in informal business of specific (sub)sectors
    • Contribution and impact of competition from informal enterprises on formal enterprise productivity in specific (sub)sectors
    • Initiatives by employers’ and workers’, organizations, informal sector associations and other member-based organizations to serve and represent their members and facilitate the formalization and business growth of informal enterprises
  • Policy and Regulatory Impact Assessment on Informality:
    • Measuring the impact of national or local policies and regulations on enterprise formalization through case studies
    • Assessing the effects of regulatory incentives, such as one-stop-shop, business advisory, capacity building, other supporting services etc., on the formalization process of informal MSMEs
    • Enablers of Firm-level Productivity for Informal Enterprises
    • Productivity tools, techniques, methods to enhance efficiency of informal enterprises
    • E-commerce platforms for market access for informal enterprises
    • Digital tools and digital literacy for informal enterprises
  • Financial Inclusion and pathways to formality for Informal Businesses:
    • Financial inclusion and pathways to formality for rural informal enterprises, informal MSMEs.
    • Addressing geographical barriers, collateral issues, social norms, etc., affecting financial inclusion and formalization.
    • Access to financial services such as Fintech or financial mechanisms adapted to the needs of informal operators, such as women and young entrepreneurs, with volatile and small incomes and the creation of pathways to formality.

Funding Information 

• Specifically, five research grants, each valued at the local currency equivalent of USD 4,000 will be awarded to institutions in Sierra Leone. Preference will generally be given to proposals aimed at empirical research. The research implementation period is 3 months from the date of grant agreement signing. The grant will be transferred upon the completion and submission of the research reports to the satisfaction of the project team.

Eligibility Criteria

• The eligibility criteria for the recipients of the research grants are as follows:
  • Academic, technical, research institutions in Sierra Leone specializing in research or market/sector analysis related to informal sector issues or enterprise formalization efforts.
  • Demonstrated experience and/or publication records in research in social sciences
  • Researcher(s)/experts in these institutions hold minimum of a master’s degree economics, social studies, political science, or related fields.

Application Requirements

• A proposal should include the following content:
  • Research title
  • Contact details: Institution name and contact details of a representative/lead researcher (full name, affiliation, address, phone, and email address)
  • Summary: A brief summary of the research proposal (max. 200 words)
  • Background, topic, and expected contribution:
    • Explain the research background for the topic selection, its relevance and the expected contribution of the research in the context of Sierra Leone
    • Indicate the relevant thematic areas, specify research question to be addressed, the significance and originality of the research topic in the context Sierra Leone
  • Methodology: Description and justification of the research methodology, including identification of data sources, method to collect data, analysis techniques, and estimation methodology (for empirical study).
  • Outline: indicate tentative structure of major sections in the research content
  • Duration: include the research implementation period, which should not exceed 3 months References: up to 10 references
  • Budget breakdown: Indicate how the research grant will be utilized.
  • Publication plan: describe plan to share final output/ findings (e.g., local or international journals, seminars, workshops, conferences, or public presentations). This section is optional.

For more information, visit ILO.