Why Technology is a Key Component of Economic Empowerment in Informal Sectors
The most common business in Ghana’s informal sector is Trading within markets. Many believe that individuals who work as Traders cannot leverage technology to formally educate themselves or build their businesses, resulting in greater economic empowerment and business formalization. However, equipping workers in informal sectors gives them transferable skills and the ability to develop their customer base.
The Significance of Tech-Based Skills
Informality can extend beyond employment into housing communities and education. Tech-based skills are transferable and can accelerate the development of other skills. By teaching traders, particularly women traders, tech-based skills, they can educate their children and increase the likelihood of their children gaining formal employment in the future due to the early introduction of tech-based, transferable skills. Traders and their families will also begin to understand and explore the difference between hardware and software and how to use both to generate more profit and learn additional practical skills.
During the research-based Upskill for Traders project that iSpace developed during the Gender Awareness Program (January 2022 — March 2022), the project team helped traders between the ages of 35–55 learn how to use digital tools to share their products and services online and develop open lines of communication with their customer base. The team also helped traders register for courier services to strengthen their customer acquisition and customer service.
A Practical Methodology
Traders are more likely to pursue and use training that directly relates to their immediate activities, so all training activities should be relevant and respect their time. Beyond learning how to use digital tools and gain tech-based skills, this group of individuals may need additional support with other things during their learning journey. Additional support may include creating an e-mail address, a lesson on choosing a username, and a lesson on how to reset passwords. In some cases, individuals may need guidance on registering for legal identification and bank accounts.
The most important aspect of providing support to workers in informal sectors is to help them through the process, starting with registration and ending with actually using the tool, platform, and skill several times to become familiar with the system and have the ability to show others. Uniquely positioned, innovation hubs can help informal sector workers increase their economic empowerment through training and support designed to fit the local market.
The next question is how innovation hubs can collaborate with other stakeholders to deliver support to help informal sector workers access more opportunities to formalize their business operations and reduce the risks associated with informal employment.
