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Entry, speed and degree of formality for household businesses: an integrated approach

Tien Dung Luu (Faculty of International Economic Relations, University of Economics and Law, Ho Chi Minh City, Vietnam and Vietnam National University, Ho Chi Minh City, Vietnam)

Journal of Entrepreneurship in Emerging Economies

ISSN: 2053-4604

Article publication date: 15 December 2022




This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.


The data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period.


This 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.


This 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.



Luu, T.D. (2022), "Entry, speed and degree of formality for household businesses: an integrated approach", Journal of Entrepreneurship in Emerging Economies, Vol. ahead-of-print No. ahead-of-print.



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