This study explores the exclusion of informal Micro enterprises from the policies on Micro, Small and
Medium Enterprises (MSMEs) in Rwanda and Senegal and the factors that contribute to this exclusion.
‘’What are the factors that contribute to the exclusion of the iSMEs, particularly informal Micro
Enterprises (iME), from the Small and Medium Enterprises policies in Rwanda and Senegal?’’ is the
fundamental question of this research in the broader area of informality, business enterprises and policy
regulations in these two countries. The study is using the model framework of the Contextual Interaction
Theory to explain how factors interact between each other and in specific given contexts. To answer the
question adequately methods of quantitative and qualitative research were combined in analyzing the
primary and secondary data, such as interviews and data on rental and permit payments. It has been
discovered that iSMEs are not excluded completely and that there are certain levels of awareness.
Moreover, the findings from the research put forward the key factors that add to the exclusion, namely:
survival, lack of financial resources and informality as a manner of living for all involved in the informal
businesses. Theoretical and policy implications of the study outcomes have been discussed and due to the
room for exploration it appears desirable to expand the knowledge with a new generation of research that
can address the area of this study more deeply.