Informal Entrepreneurial Activities Research Articles

The geography of women’s informal entrepreneurial activities in urban Zambia: place, mobility and locational decision-making

Informal entrepreneurship constitutes an essential source of income for women in sub-Saharan Africa. Research has indicated the importance of location to the productivity of informal enterprises, yet we know little about the geography of African women’s entrepreneurial activities and associated decision-making. This article studies how female slum dwellers in Lusaka organise their entrepreneurial activities spatially and how they justify associated locational choices. The study found a substantial variety in spatial arrangements although proximity to the home often took precedence over other business-related considerations. The ability to overcome or take advantage of geography when carrying out business was clearly bound up in wider relationships pertaining to gender, poverty and regulatory frameworks. Important factors contributing to satisfying business-related locational needs included a strong intra-household bargaining position, the ability to outsource reproductive work, social networks, access to financial resources and uneven regulation of space in the residential settlement. This article was published open access under a CC BY licence: https://creativecommons.org/licences/by/4.0 .

History from the Dustbins

In this essay, I reflect on the growing political obstacles to doing business history in China and how, in my doctoral dissertation research, I attempted to overcome them. More specifically, I discuss how I drew on unconventional historical sources and novel data to examine the relationship between informal entrepreneurial activity and economic change in Maoist China (1949–1978). Through the quantitative analysis of thousands of case files of individuals prosecuted as “speculators and profiteers”—discarded administrative documents that were recovered from Chinese flea markets—I reassessed the scale and scope of informal entrepreneurial activity in Maoist China. I then went on to triangulate these data with evidence found in other sources to illustrate how, over time, informal entrepreneurial activity became more collusive, encompassing, and impossible to contain. Ultimately, I argued that China’s “Reform and Opening Up” was not the state-led watershed event that it is often made out to be; rather, economic and institutional change was, at least partly, the result of a bottom-up transformation, decades in the making. This essay thus suggests that the use of unconventional sources and mixed methods presents opportunities both for doing research in contexts where history is being actively securitized and for producing countervailing narratives that decenter the state.

Entrepreneurial Learning in Higher Education: Perceptions, Realities and Collaborative Work from the Stakeholder Point of View

Abstract In recent years, Portuguese universities have diversified their strategies for the promotion of entrepreneurial education among (under/post) graduates, both through formal education and non- formal and informal activities. Indeed, Higher Education Institutions can provide entrepreneurial learning opportunities for students, stimulating new attitudes and behaviours towards entrepreneurship. In terms of non-formal and informal learning, various types of activity are of particular significance, and include entrepreneurship promotion and skills-based training, as well as monitoring of the development of ideas and projects. These activities are undertaken by various higher education stakeholders and key-actors, who contribute to the construction of an entrepreneurial ecosystem, and increase entrepreneurial spirit in (under/post) graduates. The research reported here is based on the main findings gathered from the ongoing project “Entrepreneurial Learning, Cooperation and the Labour Market: Good Practices in Higher Education (POAT-FSE)”, focusing particularly on the results of a survey questionnaire completed by a diverse sample of entities linked to Portuguese public Higher Education Institutions (HEIs) and working to promote non-formal and informal entrepreneurial activities, as well as a set of case studies carried out regarding examples of best practice in Portuguese Higher Education. In doing so, this paper aims to highlight the importance of non-formal and informal learning, and to contribute to reflection on the added value of inter-organizational cooperation and collaborative work.

“It's easier to make money.” The homeless youth of Châtelet-les-Halles, an extreme case of disadvantaged entrepreneurs within the informal economy

This article examines homeless youth as a specific category of disadvantaged entrepreneurs in the Châtelet-les-Halles district in central Paris. It proceeds by showing how the investigation into the informal economic activities of homeless youth, examined through the lens of disadvantaged entrepreneurship and geography, represents a novel research area, particularly within the Parisian context. It is distinguished by its original four-year ethnographic and geographic methodology, encompassing street observations, recorded and unrecorded interviews, and the use of Facebook and geographic information systems to observe and understand 10 homeless youths and their environment. After presenting and exploring the sociological, economic, and geographic context of Châtelet-les-Halles, specifically focusing on the activities of homeless youth, the article provides an analysis of the informal entrepreneurial endeavors pursued by these individuals. Finally, the discussion articulates the notion of geographical context with entrepreneurial creativity and resilience, to better understand how informal entrepreneurial activities are developed in urban environments.

Light entrepreneurship as a parallel staying strategy - insights from Tanzanian medical doctors

Africa faces numerous challenges such as retaining globally mobile talent and informal economies. Economic inequality leads developing countries to lose human capital, but research on staying strategies remains limited. This multiple-case study explores how Tanzanian medical doctors organise a sufficient income through parallel entrepreneurial activities with forms of light entrepreneurship. We present four strategies from intramural entrepreneurial strategy to extramural diversified entrepreneurial strategy that illustrates distinct contextual adaptations. These dual practices through parallel entrepreneurship enhance their stickiness to the context and profession, thus reducing brain drain. Such entrepreneurial strategies feed in towards upholding their primary profession, suggesting that informal entrepreneurial activity may advance overall sustainability of the society. However, parallel entrepreneurial activities require empowering capacity-building lenses and holistic policy approaches as they are linked to broader issues of local systemic viability and of talent retention in Africa. This study contributes to international migration-, human resources-, entrepreneurship- and sustainability management.

COVID-19 pandemic, a blessing or a curse for sales? A study of women entrepreneurs from Khyber Pakhtunkhwa community

Purpose The coronavirus (COVID-19) pandemic has had profound economic effects, putting women entrepreneurs at considerable risk of losing income and sales growth as a result. This study aims to examine whether the COVID-19 pandemic is a blessing or a curse for women entrepreneurs in Pakistan’s informal sector. The influence of business type, family support and other socio-economic factors on the sales volume of women’s businesses is examined. Design/methodology/approach Data were collected from 400 women entrepreneurs using a survey questionnaire. Logistic regression was used to investigate the relationships between perceived sales volume and socio-economic as well as demographic factors of women entrepreneurs. Findings Findings for RQ1 revealed that the pandemic was a blessing for cloth and cosmetic entrepreneurs, but a curse for those women selling dairy products. Results for RQ2 showed that age, homeownership, household size, family support and type of business were significant predictors of sales. Furthermore, women entrepreneurs were greatly influenced by their family’s desires and decisions, such that women entrepreneurs who received support from families and relatives reported higher sales than those who did not receive such support. Practical implications The results may assist policymakers in designing supportive programs to encourage women’s informal entrepreneurial activities. Creating entrepreneurial ecosystems may provide support for women entrepreneurs beyond family support. The findings provide a better understanding of women’s business effectiveness during COVID-19 pandemic. It reveals the resilience of women entrepreneurs in the face of cultural, economic and institutional constraints encountered during the pandemic. Originality/value This study is unique because it focuses on the impact of the pandemic at the household level rather than examining broad macroeconomic scenarios. To the best of the authors’ knowledge, this study is the first attempt to explore the informal, home-based business sector of women entrepreneurs in Pakistan during the pandemic.

Formal Institutions and Informal Entrepreneurial Activity: Panel Data Evidence from Latin American Countries

Abstract The objective of this work is to examine the influence of formal institutions on the level of informal entrepreneurial activity in Latin American countries. We use a panel dataset for 18 countries during the 2004–2017 periods. This dataset has not been widely used for longitudinal research by academics in the field of entrepreneurship in developing countries. Using the percentage of the adult population identified as self-employed as a proxy for informal entrepreneurial activity, our results suggest that informal entrepreneurial activity is lower in Latin American countries that have stronger property rights and lighter business regulation. However, countries with more flexible labor regulation show higher informal entrepreneurial activity. Therefore, we believe there is margin for policy intervention to reduce informal entrepreneurial activities in Latin America.

Entrepreneurial activities and models of advanced European science and technology universities

Purpose The purpose of this paper is threefold. It is aimed at identifying: a broad set of entrepreneurial activities; different university entrepreneurial models; and the entrepreneurial best practices of advanced European S&T universities. Design/methodology/approach The paper has adopted a mixed-method design. By mainly relying on primary data, collected through questionnaires and interviews with those in charge of the technology transfer offices of 20 universities belonging to the CESAER association, the empirical analysis has combined both quantitative and qualitative approaches. Findings The results of the empirical analysis have allowed five entrepreneurial activities to be identified. Three main entrepreneurial university models, based on different configurations of entrepreneurial activities, on different organisational and ecosystem characteristics and on a set of entrepreneurial best practices: an “engage” model, which focusses on local economic development; a “formal” model, which focusses on the financial advantage of universities and their faculties; and a “comprehensive” model, which focusses on the local economic development and the financial advantage of universities and their faculties. Research limitations/implications The first limitation of the present paper concerns the limited number of sampled universities. Moreover, this paper is limited to the European area. Future research could enlarge this study by increasing the number of universities and by focusing on other geographical areas. Furthermore, the paper does not assess the effectiveness of the identified entrepreneurial models in supporting entrepreneurship and local economic development. Further research could extend the present analysis and fill these gaps. Originality/value The paper contributes to the extant literature under many respects. First, it relies on original primary data. Moreover, it extends previous literature by encompassing the conventional distinction between formal and informal entrepreneurial activities. It also contributes to the emerging literature on entrepreneurial university models and the strategic approaches by identifying the different models of entrepreneurial universities in the European setting of S&T universities focusing on the role played by organisational and regional factors in affecting the adoption of a specific model by universities.

<i>Vho</i> (Ms) Denga <i>na</i> (and) <i>Vho</i> (Ms) Masindi: role-model rural bricoleur women entrepreneurs

This paper explores how simple and ordinary rural women pioneered, developed and sustained their informal entrepreneurial activities. The success of these women entrepreneurs came at the back of a plethora of intertwined complexities these women entrepreneurs had to contend against. This paper uses the story of Vho (Ms) Denga and Vho (Ms) Masindi in its discourse. Vho Denga and Vho Masindi were successful bricoleur entrepreneurs. Their activities have influenced a few other local women to enter entrepreneurship. This paper finds that these entrepreneurs never developed into larger formal entities commonly known as SMMEs. Vho Denga and Vho Masindi should be considered and utilised as role models and mentors of aspiring women entrepreneurs.

Negotiating business and family demands within a patriarchal society – the case of women entrepreneurs in the Nepalese context

ABSTRACTThe aim of this paper is to advance our understanding of how women negotiate their business and family demands in a developing country context. The highest cited motivation for women’s pursuit of entrepreneurship has been their need to attend to these demands. Yet, empirically we know little about the negotiating actions taken by, and the business satisfaction of women in the context of both livelihood challenges and patriarchal contexts, despite several scholarly calls for contextualized accounts of women’s entrepreneurship. We explore these issues by employing a qualitative study of 90 women engaged in primarily informal entrepreneurial activities in three Nepalese regions. Our findings highlight three main and interrelated themes – negotiating consent, family resource access and gaining status. These themes allow us to contextualize the process of negotiating business and family demands by highlighting how women legitimize their business activities, respond to family/societal expectations and mobilize support for, and find satisfaction in their business. Overall, our study contributes towards accounts of business–family interface that incorporate the everyday practices of entrepreneurial activities amongst those less privileged in terms of resource access in particular sociocultural contexts.

Small family business in Russia: formal or informal?

PurposeThe purpose of this paper is to deal with informal entrepreneurial activity of micro and small family businesses in the specific transitional environment.Design/methodology/approachThe paper uses two cases – an informal micro business (“marginal” family business), and a formal retail small firm (“simpleton” family firm), respectively, of a panel conducted in 2013–2015 in Moscow.FindingsFirst, the real distribution of responsibilities between family members is informal; it relies more on interpersonal trust and “common law.” Second, exactly the ease of governing such trust-based businesses for the founders’ generation sets limits of succession of small-scale family businesses. Third, as trust in the state is very low, the policy of Russian authorities to quickly force informal entrepreneurs to become legalized is substantially wrong; the results would be either a transformation of “simpleton” into “marginal” businesses or quitting business.Research limitations/implicationsResearch limitations of the study are the number of observations and the localization of the panel only in the capital of Russia.Practical implicationsThe fundamental failure of Russian State policy toward small-scale family businesses is its attempt to convince “marginal” to formalize and to oppress “simpleton” family businesses pushing them into informality. In fact, it should be designed vice versa: tolerate “marginal” businesses and let them to “live and die” while shaping a friendly environment for “simpleton” family firms.Originality/valueThe paper argues that the most important facet of informality in small family entrepreneurship is the informal property rights and governance duties’ distribution among the family members.

Formalizing women entrepreneurs in Kathmandu, Nepal

PurposeWomen’s economic empowerment through entrepreneurship is increasingly being recognised as significant to achieving the Sustainable Development Goals (SDGs). However, women entrepreneurship in developing countries is characterised by an overrepresentation in the informal economy and exposure to high levels of gender disparities. The purpose of this paper is to explore whether formalisation of women’s entrepreneurial activities in the informal economy supports SDGs through ensuring empowerment and equality.Design/methodology/approachThe research adopts a qualitative research design to explore the empowerment outcomes of the formalisation of women’s entrepreneurial activities in the informal economy of Kathmandu, Nepal. Data were collected through interviews with 30 women entrepreneurs engaged in a mix of formal and informal entrepreneurial activities.FindingsBy using Mayoux’s (1998) framework of empowerment at the individual, household and community level, the findings show the variation in empowerment outcomes as a result of women’s diverse motivations for engaging in entrepreneurship. Whilst informal entrepreneurial activities improve women’s confidence and life aspirations, they have limited potential in lifting women out of poverty and enable them to significantly challenge gender relations in the society. Formalization does further empower women at the household and community level but this is primarily the case of younger and more educated women.Originality/valueThe research contributes to the debates on entrepreneurship as “emancipation” and more specifically, on whether formalization contributes to the SDGs by furthering gender equality and empowerment. Formalization policies need to acknowledge the heterogeneity of women entrepreneurs.

Informal Lending and Entrepreneurship

How does the informal economy affect financial inclusion and entrepreneurial activity of consumers? We investigate the impact of informal lending on the types and terms of contracts offered by formal lenders, considering factors that facilitate informal lending activity such as social ties between consumers. The density of the connections between consumers represents the degree to which those with and without wealth mix, indirectly capturing the degree of inequality in a society. We develop a model which relates the density of social connections to the availability of informal lending activity. We show that a low to moderate degree of informal activity in a market can help unwealthy entrepreneurs because it motivates the bank to compete by cutting down the interest rate of unsecured loans offered to these consumers. In turn, the bank faces an overinvestment problem when financial inclusion is higher. As informal borrowing opportunities increase further, lenders’ benefit from increased access to credit diminishes. It earns higher rents by increasing the rates on wealthy low-risk consumers who can informally lend to their social contacts. As a consequence, the overinvestment problem is replaced by an underinvestment problem and creditworthy entrepreneurs are deprived of loans from banks. We argue that although the entrepreneurial investment shrinks, only those projects with the best return are awarded financing, implying that the average investment in the market is now more attractive.

Financial Development and Occupational Choice: Evidence from India

Theory suggests that access to finance facilitates entrepreneurship. However, evidence from randomized surveys of over one million individuals in India show instead that financial access shifts workers away from entrepreneurship into wage employment. Identifying access to finance using bank branch location determined by government policy, we find that individuals living in a district with greater access to finance are on average significantly less likely to be entrepreneurs in micro-enterprises and more likely to be formally employed. This shift is more pronounced for more educated workers. The results also show that individuals are paid higher wages on average in districts with more bank branches, and this effect is driven by those engaged in formal employment. To establish the firm-level channel, we use randomized surveys of over 400,000 service sector firms, and find that firms located in districts with more bank branches have significantly higher bank loans. The results indicate that firms in more financially developed districts are more productive, employ more workers, and pay higher wages on average, with the benefits mostly accruing to larger, formal sector firms. Our results suggests a mechanism by which financial development facilitates economic growth: by moving workers out of less productive, informal entrepreneurial activity into formal jobs in more productive firms.

Entrepreneurial Learning in Higher Education: Perceptions, Realities and Collaborative Work from the Stakeholder Point of View

In recent years, Portuguese universities have diversified their strategies for the promotion of entrepreneurial education among (under/post) graduates, both through formal education and non- formal and informal activities. Indeed, Higher Education Institutions can provide entrepreneurial learning opportunities for students, stimulating new attitudes and behaviours towards entrepreneurship. In terms of non-formal and informal learning, various types of activity are of particular significance, and include entrepreneurship promotion and skills-based training, as well as monitoring of the development of ideas and projects. These activities are undertaken by various higher education stakeholders and key-actors, who contribute to the construction of an entrepreneurial ecosystem, and increase entrepreneurial spirit in (under/post) graduates. The research reported here is based on the main findings gathered from the ongoing project "Entrepreneurial Learning, Cooperation and the Labour Market: Good Practices in Higher Education (POAT-FSE)", focusing particularly on the results of a survey questionnaire completed by a diverse sample of entities linked to Portuguese public Higher Education Institutions (HEIs) and working to promote non-formal and informal entrepreneurial activities, as well as a set of case studies carried out regarding examples of best practice in Portuguese Higher Education. In doing so, this paper aims to highlight the importance of non-formal and informal learning, and to contribute to reflection on the added value of inter-organizational cooperation and collaborative work.

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.

Entrepreneurial Training: A Comparative Study across Fifteen European Countries

This paper arises from the contents of the Lisbon Strategy, a set of cooperation policies stressing the role of education and training. The findings from a comparative study of the influence that entrepreneurial training – classified as formal or informal – can have on start-up expectations are analysed. The study covers fifteen European countries and uses data derived from the Global Entrepreneurship Monitor (GEM) website. The results of a logistic regression model show significant differences across Europe: in some countries, start-up expectations are influenced only by participation in formal entrepreneurial training programmes; in others, they are affected only by participation in informal entrepreneurial training activities; in yet others, such expectations are induced by both formal and informal entrepreneurial training. Regarding the current status of entrepreneurial training, it appears that although the fifteen European countries are following the correct path there is still much to do to achieve the overall objectives established by the Lisbon Strategy. Some recommendations for policy makers and the implications for future research are suggested in the concluding section of the paper.

Universities as Training Grounds of Entrepreneurial Activities in Developing Nations: A Case Study of Fort Hare, South Africa

This paper assessed informal entrepreneurial activities demonstrated by post-graduate business management students at the University of Fort Hare (South Africa). To achieve this objective, literature on entrepreneurship, formal and informal entrepreneurial activities was reviewed. A survey was carried out among 40 post-graduate business management students (Honours and Masters). Data was collected through the use of self-administered questionnaires. Data was analysed using descriptive statistics and Chi-square test of association. The empirical results obtained indicate a strong concurrence with other empirical papers. The findings of the paper confirm the existence of informal entrepreneurial activities. Informal entrepreneurs enjoyed both intrinsic and extrinsic rewards though their degree of preference varied on individuals. Further, results indicate that informal entrepreneurial activities were of different types and informal entrepreneurs (post-graduate business management students) were being rewarded by profits. The paper recommends that post-graduate business management students should plan their activities in order for them to succeed both academically and entrepreneurially.

The International Summer School on “The Role of Informality in Socio-Economic Transition Environments”

The International Summer School on “The Role of Informality in Socio-Economic Transition Environments”, organized by the National Research University Higher School of Economics (HSE) in cooperation with Freie Universitat (FU) Berlin, was held from 30 June to 6 July, 2014 at the Moscow campus of HSE. The Summer School brought together 20 students from both of the sponsoring institutions, as well as from other European universities, around a rich programme of lectures given by HSE and FU Berlin faculty. The lectures covered various aspects of informality such as informal entrepreneurial activity, corruption in transition societies, informal political action and social networks, as well as methods for their study, ranging from ethnographic methods to lab experiments on police corruption. The students were organized into three working groups to study informality in more depth. Each working group focused on one of the following topics: corruption in (higher) education, informality in the labor market and violent pressure on businesses. The working groups met with experts at HSE Moscow research centers, and at the conclusion of the Summer School made a presentation of their findings. The Summer School shows how a rich research agenda can emerge from bringing together perspectives from Russia and Germany as well as other West European countries on the field of informality.

Ethno-cultural clusters and informal entrepreneurship in Russia

Purpose – This article aims to explore informal entrepreneurial activities in ethno-cultural clusters in the Russian South. It evaluates the agglomeration economy efforts of ethno-cultural communities and the formation of a new operations of the informal sector. The transition of the ethnic project “Obukhovsky Choir” from an informal to a formal enterprise is considered as unfinished. The emphasis is pointed at the barriers affecting the process and extra-economic factors influencing entrepreneurship activities in ethno-cultural clusters in Russia. Design/methodology/approach – For investigation of the informal entrepreneurship in the Southern Russian agglomeration, in-depth interviews method has been used. The paper researched concept of entrepreneurship and cultural entrepreneurship through the interviews, trying to distinguish the core factors influencing activities of Obukhovsky Choir. These questions concern motivation to enter entrepreneurship activity, regional and local policies affecting the overall situation, core values (ideology) of these types of activity, the role of institutional and other contexts, spatial distribution and social capital influence. Findings – The case of the Rostov agglomeration demonstrates the delayed development of ethno-cultural clusters and attempts to closure activities of communities into local political space. Rostov agglomeration has not stepped through the threshold and involved ethno-cultural communities in the formation of the “common good” conception. While Rostov agglomeration is still attractive for labour migration and migrants' entrepreneurial initiatives, local government does not support such intervention into the stable regional market. These steps delay the development of ethno-cultural clusters and contradict communication between ethnic communities, autochthonic population and local administration. Originality/value – The case chosen for analysis is Cossack music entrepreneurial space as a salient sample of ethno-cultural cluster with powerful economic potential. It could be used for further consideration of ethno-cultural cluster as a source for socio-economic modernization of Russian multicultural agglomeration where established ethnic communities' communicative style strategically provides support or opposition to the local administration initiatives.