Entrepreneurial identity and strategic response in the informal economy

Abstract

While entrepreneurs generally confront many challenges in running their businesses, those in the informal economy must do so outside the boundaries and support of formal institutions. The nuances of the informal economy means that entrepreneurs operating in such environments may have to rely on different mechanisms in dealing with adversity than their formal counterparts. Applying the lens of entrepreneurial bricolage, this article sheds light on how entrepreneurs respond to contexts of adversity in the informal economy. As a result of our exploratory research of informal entrepreneurs in Ghana, we find that their response is closely associated with their entrepreneurial identity. We discuss the theoretical and practical implications of these findings. Keywords: Entrepreneurship, entrepreneurial identity, informal economy, exploratory research design, Ghana.