A legal framework for market participation makes it easier for the BOP to take part in companies’ value chains. Policies that empower the BOP through the legal system include formalizing informal firms; granting official identification document; and ensuring low-income people and groups have the appropriate land titles.
A thorough understanding of the workings of the BOP market is a precondition for improving the legal framework for market participation. For informal markets for example, reliable data on the number of people involved, transaction volumes, or typical conflicts and business issues are rarely available, as these transactions and businesses never show up in revenue offices or courts. Participatory research with the target group will not only reveal challenges, but will also point to potential solutions.