Determinants of informal enterprise closure by gender: a microeconometric study applied in Senegal

Abstract

This article aims to investigate the factors influencing the closure of informal businesses during the COVID-19 pandemic, with a specific focus on the differences between businesses led by women and men. The research employed a logistic regression approach and utilized the matching method to evaluate the pandemic’s impact. The study relied on a database created by the Development Policy Analysis Laboratory, Cheikh Anta Diop University, Dakar, which encompassed 923 informal businesses operating in diverse sectors in Dakar. The findings demonstrate that businesses managed by women experienced a more severe impact from the pandemic, leading to a higher likelihood of temporary closure. These results underscore the disproportionate effect of the crisis on women entrepreneurs within the informal sector and emphasize the necessity for tailored measures to support this vulnerable population during and after the pandemic. Such measures should address the unique challenges faced by women-led informal businesses and help foster their recovery and long-term sustainability