Formalisation should make small businesses stronger, not merely visible to tax collectors because the commercial decision reaches far beyond a single announcement. Entrepreneurs often avoid registration when costs arrive before services.
Simple digital processes must be matched by credit access, fair enforcement and useful legal protection.
An entrepreneur will not register simply because government wants a larger database. Formalisation becomes rational when legal identity opens contracts, banking, insurance and protection worth more than the cost and attention it creates.
Digital portals can reduce queues, but fees, municipal permits and tax rules must also align. Otherwise one easy registration leads into several expensive offices.
Enforcement should distinguish growing enterprises from deliberate evasion and offer transition periods. Credit providers and procurement systems can reward reliable records without excluding businesses still building them.
The best reform creates a bargain between enterprise and the state.
The bargain is legitimacy for service: firms become visible and accountable while the state becomes useful and predictable. Formalisation fails when it is merely a faster road to taxation.
