This paper aims to question the underlying assumption that the informal microenterprise
(IME) sector will be able to absorb unemployed urban youth and understand
how current informal skills development programs may address this issue in
Ghana. A comparative descriptive analysis is carried out by complementing quantitative
analysis with qualitative interviews. Findings suggest a need for revisiting the
absorptive capacity of the IME sector. First, most informal sector activities are found
to be stagnant overall, facing several macrolevel constraints. Second, it appears that
lack of formal education in particular, accompanied by little or no relevant work
experience, may be an important barrier for youth in becoming self-employed.