Abstract
PurposeThis paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.Design/methodology/approachThe data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period.FindingsThis study elucidates how firm-level resources, entrepreneur characteristics and costs of doing business influence an entrepreneur’s decision to enter, the speed and the degree of formality.Originality/valueThis study provides insight into the origins of an entrepreneur’s decisions to the multidimensions of business formality through the lenses of the resource-based view, entrepreneurship and institution theories.
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