Certification and access to markets as an incentive to formalize
This document is part of a series of case studies by the Enterprises Department of the ILO. Each case study presents one or several approaches that contribute to enterprise formalization across the world.
Certification is a key element to making formality more rewarding and sustaining formalization once enterprises have been registered. When a certification procedure is established and entrepreneurs are aware of its value, they can register to apply for certification and start producing and selling to new buyers or customers in the formal economy, thereby creating opportunities to make their business more sustainable and afford the cost of compliance year-on-year. In the case of the Alliance Caucasus Programme (ALCP) in Georgia, certification provided dairy producers with access not only to domestic but also to international markets.