Informal Business Sector Research Articles

LITERASI KEUANGAN, FAKTOR DEMOGRAFI DAN AKSES PERMODALAN PENGARUHNYA TERHADAP KEPUTUSAN PENGAMBILAN KREDIT USAHA SEKTOR INFORMAL

This study aims to anlyze effect of financial literacy, demographics factor (age, income, employment, education) and acces toward credit investment decision on informal sector business in West Purwokerto District. Sample in this study were 202 people taken by purposive sampling method. Data were analyzed using descriptive statistics test, validity test, reliability test, classical assumption test and multiple linear regression analysis. The results showed that financial literacy, employment, and access to capital have sign toward credit investment decision, education has an insignificantly positive effect toward credit investment decision. While both age and income have significantly negative effect toward credit investment decision.

Data Mining Approaches in the Study of the Nigerian Informal Sector

The vast amounts of economic data currently being generated and collected calls for the application of new methodologies in order to make sense of them. It is for this reason that we have undertaken the analysis of some of data collected on the informal sector of the Nigerian economy using data mining and machine learning techniques. This is different from the traditional bare statistical methods hitherto being used in such analysis. In this work, we used data gathered by the National Salaries, Incomes and Wages Commission (NSIWC) on the informal sector of the Nigerian economy between the year 2014 and 2016. These data were subjected to analysis using WEKA data mining/machine learning tools and the Random Forest ensemble algorithm. The results show that the modal population age group of Nigerians working in the informal sector is in the age bracket of 30-44 years. Similarly, it was discovered that wholesale business is the dominant activity in the informal sector and women's participation in informal sector business is still low compared to their male counterparts. This study shows the relevance or implication of utilizing data mining methodologies over the conventional statistical analysis of data.

INFORMAL SECTOR IN MASVINGO CITY: CHALLENGES AND OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT

Zimbabwe, like other developing countries, is experiencing a proliferation of the informal sector. The development of the sector is mainly concentrated in the cities. Masvingo is a city in the South-eastern part of Zimbabwe. It is in this city that there are growing activities of informal business. The informal sector has significant impacts on the sustainable development of the city. The goal of this study is to examine the benefits and the challenges of the informal sector in Masvingo city. Primary data was collected using a questionnaire and two focus group discussions as research instruments. A total of 160 questionnaires and two group discussions were administered to solicit data from the participants in the informal sector in Masvingo city. It emerged from the study that the informal sector in the City has positive impacts such as income generation, acquisition of business experience, self-reliance, contribution to city revenue, supply of goods, contribution of the sector to national development and flexibility in the informal sector businesses. Apart from the benefits, the sector also has challenges such as lack of funding, low returns, harassment by local authorities, import restrictions, environmental pollution, management problems, shortage of space and arduous registration requirements. Various recommendations were made to mitigate the negative impacts of the informal sector in Masvingo city. Article visualizations:

Street Vendors (PKL) as the Survival Strategy of Poor Community

Street vendors are some of informal sector business actors who are directly related to city government policy. Illegal street vendors as one type of street vendors often get ill-treatment from the city government. It is because in running the business, street vendors occupy public space, such as sidewalks and shoulders, so they are disciplined. Through this phenomena, this study aimed to analyze (1) survival strategy done by street vendors and (2) reasons by street vendors in using public space as a place to trade. Those objectives were further described by employing qualitative descriptive method with data collection technique through interviews and observations. Once the data have been collected, they were analyzed qualitatively interactively. From the research results, it can be concluded. First, being a street vendor for low-level society is the only option and is the most viable way to sustain their lives. Some street vendors do survival strategy in order to meet the needs of everyday life. Second, street vendors use public spaces such as roadsides and sidewalks because (1) there are limitations which make them impossible to occupy locations with obligations to pay, (2) roads and sidewalks are strategic places to peddle merchandise; and (3) lack of attention from government to the needs and welfare of street vendors.

Factors influencing firm’s local business environment in home country context

PurposeIndian and Chinese businesses are slowly making advances in each other’s markets. The purpose of this study was to understand factors that influence the business environment of a country and how does it compare between India and China.Design/methodology/approachThe study uses firm-level survey data from the World Bank’s Enterprise Surveys. The study considered survey data for 2,700 Chinese firms and 9,281 Indian firms. Exploratory factor analysis and structural equation modeling were used to analyze the factors that drive the business environment in both countries and why differences appear.FindingsThe data set reveals different factor structures for India and China. Across both the countries, infrastructure support and governance play a major role in shaping the business landscape, though in the case of India, regulatory dynamics play a crucial role. The study concludes that these differences drive the basic difference in business environment across both countries.Research limitations/implicationsThe study considers only the formal sector, and informal businesses have been left out because of paucity of data. The dynamics of informal business sector can be considered for future studies.Practical implicationsWhile making market entry or investment decisions globally, businesses can analyze country-specific environmental factors through this framework. As the study is based on the perceptions of businesses, policy-makers can also focus on these factors to attract businesses to specific countries or regions.Originality/valueThe study is an original research study. The study adds to the existing academic literature and is expected to help policy-makers and senior managers in focusing on specific aspects of business environment when developing policies or taking market entry decisions.

Business Tourism in Africa: The Case of Cameroon

Existing debates on tourism development in Africa largely focus on the impacts and dynamics of leisure tourism. This study turns attention to neglected issues around business tourism with specific reference to Cameroon. It critically examines the nature of business tourism in the country focusing on Cameroon's two major cities, Douala and Yaounde. The analysis is based upon data drawn from a survey of business tourists staying in local hotels as well as semistructure interviews conducted with hotel managers/representatives. The results reveal a differentiated pattern of business tourism with representation by both domestic and international travelers and formal as well as informal sector business tourists. One distinctive element in the formal economy of business tourists is the group of "bushfallers," which are Cameroonian citizens living abroad but retaining business interests in the country.

Security Risk and Xenophobia in the Urban Informal Sector

Whenever there are violent attacks on refugee and migrant businesses in South Africa's informal sector, politicians, officials and commissions of enquiry deny that xenophobia is a driving force or indeed exists at all in the county. A new strain of nativist research in South Africa does not deny the existence of xenophobia but argues that it is an insignificant factor in the violence. It is argued that because South African and non-South African enterprises are equally at risk, the reasons for the violence are internal to the sector itself. This paper critiques this position on the basis of the results of a survey of over 2,000 enterprises in the contrasting geographical sites of Cape Town and small town Limpopo. The survey results reported in this paper focus on security risks and the experience of victimisation and the experience of the two groups of enterprise operator are systematically compared.

Development Strategy on Business of Informal Sector and Its Role in Reducing Poverty in South Sulawesi, Indonesia

The study is aimed to identify the problems of informal sector business, to design the models and strategy in developing informal sector business, and to analyze the role of informal sector in reducing poverty in South Sulawesi. The population of the study is the informal sector in Makassar, and Pare-Pare, South Sulawesi Province. The number of samples is 200 people. Purposive sampling is used as the sampling technique. Data is analyzed by descriptive statistics, and Analytical Hierarchy Processes (AHP). Then, data is processed by IBM SPSS 22 and Expert Choice. The results show that the main problems faced by the informal sector consist of: (1) the lack of government support, (2) access to capital is relatively difficult, (3) business management unprofessional, (4) lack of labor skills, (5) Lack of marketing network, (6) retribution, (7) the urban planning policy, (8) generally do not have a business license, (9) competition, and (10) the existence of illegal fees. There are three alternative strategies that can be used to develop the informal sector, namely: (1) empowerment, (2) formalization (legal / business licensing), and (3) the localization, which provides the location for the informal sector. Development of the informal sector requires the support and commitment from the stakeholders, especially local government. In addition, the support from the institutions such as universities, NGOs, and the private sector. The study also shows that the informal sector has a greater role as a source of people income. Furthermore, the informal sector also contributed as a provider of jobs, reduce poverty, and as a source of local revenue and economic growth. DOI: 10.5901/mjss.2016.v7n6p97

Moving from Adaptive to Transformative Capacity: Building Foundations for Inclusive, Thriving, and Regenerative Urban Settlements

The commitment to understanding the implications of a 1.5 °C global temperature warming limit has contributed to a growing realisation that transformative adaptation is necessary to avoid catastrophic environmental and social consequences. This is particularly the case in urban settlements where disconnection from the systems that support life is pervasive and injustice and inequality play out daily. This paper argues that in order to transform towards thriving social-ecological systems, transformative capacity needs to be strengthened. The paper builds on the rich literature of adaptive capacity, alongside concepts of transformation that are drawn from resilience theory, organisational change, and developmental psychology. Reconnection to life-support systems, agency, and social cohesion are put forward as three foundational aspects of transformative capacity. A transdisciplinary case study of the FLOW programme in the Bergrivier Municipality, South Africa, is used to explore how transformative capacity has been built in practice. The case study explores an innovative programme that works with unemployed urban youth, alongside the exploration and introduction of a community currency in the informal business sector, and strengthening cross-scalar interaction between the local municipality and youth. The paper suggests that working across sectors and scales in a transdisciplinary manner is a challenging endeavour but necessary for building inclusive, thriving, and regenerative urban settlements.

English

This study is set out to investigate poverty and women in the informal sector with evidences from urban areas of Eritrea. The study uses descriptive technique on primary data collected using interview and questionnaire from 12 towns distributed throughout the 6 administrative regions of the country. The approach adopted includes both a survey and structured interviews targeted at women who are active in the informal business sector. The main findings from the sample data of 1604 women collected indicate that majority of the respondents are poor as their monthly income hovers around the poverty line set by the world bank (of one dollar and fifteen cents per day). Furthermore, it has been noted that the greater part of women interviewed are active as petty traders, followed by services and only a minority of them are active in the manufacturing (production) sector. Poverty and unemployment are the two main driving forces that made them to try their chance by making themselves active in this sector. However, they lack the entire necessary infrastructure and amenities to facilitate their businesses as the majority of them work in open public places under continuous harassment and uncertainty. They do need legal and social protection, place of work, training, credit and other amenities if they are going to expand their business and go out poverty. The result shows the situation and plight of women in informal sector in the country and the paper therefore recommends that policy makers take notice of their situation and give more support and formulate policies that will provide an enabling environment for the growth, expansion and prosperity of the sector in general and women working in the sector in particular. Key words: Women, informal business, developing country, Eritrea.

ICT Access and Social Infrastructural Facilities and the Performance of Informal Micro- and Small-Business Enterprises in Nigeria

This paper examines the roles that access to ICT and improved social infrastructure play on the performance levels of informal micro and small business enterprises in Nigerian. For formal sector organisations, studies have been conducted to verify this, but not much is known with respect to micro and small informal sector businesses. This study therefore intends to bridge this yawning gap by carrying out an analysis of the impact of the access to telephone (a major component of ICTs that is fast finding common usage among informal sector enterprise-owners) among informal micro and small businesses in Nigeria. The study relies on primary data on the informal sector enterprises collected by the Nigerian Institute for Social and Economic Research (NISER) in 2014. Basic descriptive statistics in addition to the Ordinary Least Squares Regression model is used in the analyses of the data. Policy measures that will enhance further diffusion of ICT infrastructure among micro and small business to enhance their growth and contributions to income and employment generation are recommended at the end of the paper.

Pesticide Vendors in the Informal Sector: Trading Health for Income.

South African low-income communities face many challenges (e.g., insufficient housing, poor service delivery, and abject poverty); additionally, a silent challenge of pest infestation plagues these areas resulting in disease risks, nuisances, and stigma. Consequently, an enterprising urban informal sector business has emerged providing residents with highly toxic, effective, cheap, and illegal "street pesticides." These pesticides pose acute and chronic health risks for vendors and residents. The economic opportunity provided by the high demand for effective and cheap pest control results in the high risk of health effects being traded for income. Current measures to control and "regulate" the massive street pesticide sales result in toxic stockpiles and government's "turning a blind eye." Solutions will only be achieved through open dialog identifying and developing non-toxic pest control strategies while ensuring vendors' income; and relevant stakeholder recognition that pest infestation is a social and environmental health determinant needing acknowledgement in different government policies.

Livelihood in the Urban Informal Sector: A Study of Street Vendors of Dhaka City

Though Dhaka city has huge population, it lacks educated and qualified people who are able to work in the formal-sector jobs. On the one hand, the job opportunities in the formal sector are limited and on the other hand, informal sector offers livelihood opportunity to the poor people. Education and huge capital are not required to start a business in the informal sector. So less educated and less-qualified people are easily attracted by informal-sector activities. Many people work as street vendors in Dhaka city and earn their livelihood. An informal-sector activity, like street vending is seen as a cause of rural–urban migration, because it lowers the risk of the individuals being unemployed once they move to the city. This study shows that most of the street vendors of Dhaka city belonged to rural areas and most of them were unemployed. The income of others who were employed in rural areas was not high. So they migrated to Dhaka city and started street vending as their livelihood strategy. After that their conditions have been changed and currently they are meeting their basic needs partially or fully. They are self-employed now. Most of them have monthly savings and they are satisfied with their business that is why they want to continue their business. Though street vending is the source of livelihood, the vendors have to face different types of problems to run their business smoothly. The government can facilitate the transition of informal-sector business to the formal-sector business instead of encouraging or suppressing informal activities. The government should think deeply about the informal sector since it provides livelihood to a great number of people of the country.

English

Hardly any research is available regarding women entrepreneurs in the informal business sector in Eritrea. Results based on a survey of 1,607 women drawn from 12 cities in 6 regions indicate that in setting up an informal business the main sources of initial capital are: the owner’s cash savings; loans from friends and relatives; and interest free credit from suppliers, based on trust. On the positive side, half of the survey respondents indicated that their initial capital had increased since startup, while a significant number stated that it had remained the same, and in a few cases respondents indicated that their initial capital had decreased. Furthermore, it has been noted that Ukub (Rotating Saving and Credit Associations),  a form of non-interest bearing savings is a traditional way of network for saving money. Since the majority of the respondents indicated that they purchase their merchandise/raw materials from the formal sector, these informal businesses are assisting formal businesses by serving as important channels of distribution. However, the evidence also reveals that a lack of funds, a lack of demand for products, high cost of materials, and municipal and national laws (and regulations) governing the informal sector represent key problems faced by informal business owners.    Key words: Women, informal sector, financing, networking, economic empowerment, Eritrea.

The Challenges Faced by Informal Traders in Greater Letaba Municipality in Limpopo Province, South Africa

Informal trade has grown at an alarming rate in South Africa because of lack of employment opportunities in both the private and public sectors. This has resulted in many unemployed members of the population joining the informal business sector. The majority of people in this sector do not have skills that are needed in the formal employment sector, others are semi-literate and a small percentage has some level of qualification. Nevertheless, this sector is plagued by a number of challenges which this article presents. The article reports on the study that was conducted at Greater Letaba Municipality in Limpopo Province. The aim of the study was to investigate the challenges that were faced by informal traders in Greater Letaba Municipality in Limpopo Province in South Africa. The area was chosen because of its accessibility to the researchers and its potential to provide relevant and accurate information for the research project. Thus, a qualitative research method was used to collect data through face to face interviews. The research discovered that some of the challenges experienced by the informal traders in the area ranged from lack of support from the local municipality to structural challenges like lack of ablution facilities and limited access to electricity. Furthermore, other challenges concerned safety and health issues that were also gender based. Most of the traders in the area were women; an element which attest to the fact that it is difficult to find employment in the country when one is less educated and is also a woman.

The Influence of Capital, Number of Working Hours, Works Force and Time to Run Business on Operating Income of Angkringan in Yogyakarta

Informal business sector is the largest economic activity unit in Indonesia. Most informal businesses have earned no more than five million rupias per year. One form of informal business sector is angkringan. Angkringan is one of informal business forms that sales foods and drink to lower-middle-class consumers . This type of business is mostly done in Jogjakarta. This business is the main source of income some communities in Jogjakarta.
 This research is aimed to analyze the influence of capital, number of working hours, work force, and time to run the business on operating income of angkringan. The sample was collected by using purposive sampling method. The respondents are 70 angkringan owners in Jetis, Yogyakarta. Data collection was carried out by distributing questionnaire to respondents about their operating income, amount of their capital, working hours, and work force. Analysis instrument used in this research is multiple regression analysis, while the hypothesis is tested by using t test and F test.
 Data on this research is cross sectional. To obtained better result better, the amount of business capital and operating income are transformed into a logarithm. Model of multiple regression is formulated as a log y = 4,113 + 0,283 Log x1 + 0,006x2 + 0,093x3 + 0,012x4. 
 The result of the study showed that income level of angkringan sellers in Jetis, Yogyakarta, is influenced by the amount of business capital, working hours, work force and time to run their business. Number of working hours is the greatest influencing factor on angkringan income. The result of testing the regression coefficient in partial and unison shows that all variables significantly impact the income level angkringan sellers in Jetis, Yogyakarta. The coefficients determination (r2) result reaches 32.5%. While the remaining 67.5% described by other variables is not included in the model research.
 Key word: Influence of capital, number of working hours, works force and time to run business, bboperating income

The Conception of Street Vending Business (SVB) in Income Poverty Reduction in Tanzania

Street vending is ubiquitous, especially in developing countries. Despite its role in pro-poor economies, it has received little attention; much has been focused on its negative impacts like, use of public space, congestion, health and safety risks, tax evasion and the sale of shoddy merchandise. In Tanzania, street traders are usually concerned with confrontation with local authorities, and at the end they lose their products and money. This study is basically concerned with exploring the approaches of street vending business operation and conceptualizes the best mode of operation for successful income poverty reduction. It is carried out by reviewing previous studies relating to SVB and the micro informal business sector in general. The study proposes a model for street vending business operations and its interventions that can lead to an income poverty reduction.

Women's dominance in the informal sector in Gaborone, Botswana

The purpose of this study was to find out why the informal business sector in Gaborone, Botswana is dominated by women. The study adopted the qualitative research method in order to tell the women’s stories and experiences as they told them. Convenience and purposive sampling were used to select 12 women who operate particular informal businesses around Gaborone. Using in-depth interviews, observation and photography, the study established that the women dominate the informal business sector due to unemployment which is a result of low levels of education. In addition, the study found out that some women are pushed into the streets to eke for a living in the informal business sector because of the need to provide for children whose fathers have disserted. Interestingly, the study revealed that some women have decent jobs but they engage in the informal business sector to fulfil their desire for autonomy while others do it to satisfy their entrepreneurial spirit.

Women in the informal sector in Mauritius: a survival mode

Purpose– The purpose of this paper is to analyse the characteristics of women entrepreneurs operating in the informal sector in Mauritius and to investigate the impact of women entrepreneurship on their own livelihoods and that of their families.Design/methodology/approach– Using survey data on 158 women entrepreneurs operating in the informal sector, the authors analyse whether there has been an improvement in the standard of living of women entrepreneurs as a result of their informal entrepreneurial activities.Findings– Findings reveal that the informal sector has provided a self-employment outlet for unemployed and retrenched women in Mauritius. Even if for a majority, their earnings remain low, their informal activity has indeed helped to contribute to their livelihood and household earnings.Research limitations/implications– Research on informal sector businesses is fraught with limitations, given that these firms operate on the fringes of legality and data are thus a major issue. Hence interviewing owners of informal sector businesses to get relevant data is quite challenging.Practical implications– The results indicate that informal entrepreneurial activities contribute positively to women's livelihoods, hence policy should be aimed at encouraging women agency even if it is in the informal sector.Social implications– The study helps to shed light as to whether entrepreneurship even if it exists in the informal sector helps to improve the living of these women and their families.Originality/value– This study is innovative as it investigates the livelihood of a vulnerable section of the population, in this case, women entrepreneurs operating in the informal sector. The authors find that the informal sector provides women with higher income when they are married and are more formally educated.

Informal Sector Business Tourism and Pro-poor Tourism: Africa’s Migrant Entrepreneurs

Debates about tourism and poverty and around ‘pro-poor tourism’ are at the forefront of current tourism scholarship in Africa. However, much of the existing body of African writings is focused upon questions relating to international leisure tourism. It is stressed that in light of the scale and importance of business tourism in contemporary Africa this oversight requires correction. This article highlights the existence of different forms of business tourism in sub-Saharan Africa and draws an important distinction between formal business tourism and an extensive segment of informal sector business tourism. The pro-poor impacts of informal variants of business tourism are explored through a review of available research. Informal sector business tourism is shown as the domain of migrant entrepreneurs in sub-Saharan Africa. DOI: 10.5901/mjss.2014.v5n16p153