Abstract
Background -Handlingnon-observed activities pose major challenges to the governments and other stakeholders. Non-observed activities refer to underground activities, illegal activities, informal sector and any other activitiesthat result in goods or services consumedby the household.The impact of these non-observed activitiesshowsthat the volume of people involved intheinformal sector will rapidly increase. Informaleconomicactivities are technically illegal yet are notintended asantisocial,therebyremainingacceptable to many individuals withinthesociety.This research aimedto identify the factorsthat leadtoentrepreneurial necessityand opportunity. Methods-The data of51respondents whowereemployed as informal entrepreneursin Klang Valley areasin Malaysiawas collected with the use ofaquestionnaire andconvenientand proportionate sampling techniques. The data wereanalysedusing SPSS software. Results-The two primary drivers of informal entrepreneurial activitywerenecessity and opportunity. The inability to find a formal jobwasan example of being driven by necessity.Meanwhile,individuals that are driven by opportunitychose towork independentlyinthese informal sectors.Between necessity and engagement, refinement actedas a mediator. Often, necessityand opportunity do not automatically translate into successful entrepreneurship; further refinement is required in terms of market potential, technology usage, location preferences, and capital requirements. Improved refinement results in increased entrepreneurial engagement. Conclusions -The role andcontributionof theinformal sector entrepreneurshipineconomicdevelopmentneedto be evaluated and not just observed as an opportunity forindividualswhochoose this type of career. Therefore,further research is required in a wider variety of contexts to evaluate whetherthe same remains truein different populations.The results of thisstudy can beuseful forthe governmentto setpoliciesto encouragethe transition ofinformalto formal entrepreneurshipsin Malaysia.
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