Between the economy and culture: structural factors of street entrepreneurship in the Alameda Reyes sector - Quibdó and its transition towards formalization

Abstract

Informal employment is a structural and persistent phenomenon in the economy of Quibdó, located on the Colombian Pacific coast, particularly in traditional areas like Alameda Reyes. This street symbolizes the participation of Afro-Colombian neighborhoods in the development of popular expressions, the construction of identity, and social activism within the Chocó region. In this area, most street-based businesses operate outside the legal framework. The objective of this study is to analyze the main economic, sociocultural, and structural factors that contribute to the persistence of informality and to explore ways to promote formalization in these contexts. The study was conducted using an exploratory qualitative methodology, which included semi-structured interviews with key stakeholders and participant observation of the sector's daily activities. The results show that, beyond the lack of opportunities, informality is perceived by many Quibdó residents as a rational and adaptive alternative to labor exclusion, reinforced by a weak institutional presence, formal procedures perceived as costly or inaccessible, and distrust in public policies. Furthermore, it was evident that the measures promoted by governmental and non-governmental entities, although well-intentioned, remain insufficient to modify cultural patterns and eliminate the prevailing economic and administrative barriers. It is concluded that achieving formal production in Alameda Reyes requires strengthening communication, designing intersectoral policies that articulate concrete incentives, simplifying procedures, strengthening institutions, and implementing awareness campaigns that value local culture and foster sustainable economic and social development in Quibdó. This comprehensive approach would allow progress toward social inclusion and overcoming a phenomenon as old as it is persistent, providing useful evidence for those who design entrepreneurship policies and strategies in similar contexts.