But there are high costs of informality, including the high cost of finance, less access to utilities, lack of social and legal protection and limited bargaining power or competitive edge. Formalization is often proposed as a way to assist enterprise development in LDCs, as in other developing countries. Its benefits include enforceable contracts; access to formal financial and other services; legally recognized rights; better access to public utilities, infrastructure, services, social protection; and membership in formal associations, providing “voice" (Sundaram, 2007).