It is also important to specify the benefits of the formal economy for the players. For an entrepreneur, those are legal security, expansion capacity, and access to credit in the financial system. For the Government, it is related to monitoring and promoting the national production in small and medium sized companies, controlled and supervised employment, and increase in tax collection levels.
Converting an informal market to a formal one takes place and differs from country to country based on the laws and circumstances of each. The World Bank has identified the main drivers of informality in the Peruvian economy. Those are business and labor regulation to implement flexible labor laws, government transparency to eradicate corruption, and government spending in education, infrastructure, and social programs related with nutrition and health.