Abstract
Informal entrepreneurs operating in impoverished settings characterized by high institutional voids are limited in their capacity to elevate themselves out of poverty due to their inability to draw on formal institutions that facilitate and support the accumulation of resources and growth. However, as informal entrepreneurs interact with the formal economy they encounter institutional pluralism which results in competing pressures and conflicts between normative and regulatory expectations about operating in the informal economy. Using a unique government survey of entrepreneurs in urban slums in Rio de Janeiro, Brazil this study examines the factors that influence whether an entrepreneur crosses institutional boundaries.
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