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Open Access
Article
Publication date: 2 January 2024

Kasimu Sendawula, Shamirah Najjinda, Marion Nanyanzi, Saadat Nakyejwe Lubowa Kimuli and Ahmad Walugembe

The purpose of this study is to explore how the personal traits of the informal entrepreneurs influence their formalization decisions.

Abstract

Purpose

The purpose of this study is to explore how the personal traits of the informal entrepreneurs influence their formalization decisions.

Design/methodology/approach

This study adopted a qualitative approach using a multicase design in which 28 informal entrepreneurs situated in Kampala district, Uganda, were engaged. An interview guide, recorders and note books were used in data collection.

Findings

The results indicate that the traits of informal and semiformal entrepreneurs are distinct. Informal entrepreneurs have been noted to be more courageous and resilient, while their semiformal counterparts have greater passion for their businesses. It is thus observed that the formalization prospects are higher for the semiformal entrepreneurs than for their informal counterparts. Entrepreneurs that would be willing to formalize their businesses are discouraged by distance, technology and the cost of involving middlemen. Whereas the resilient entrepreneurs are noted to work through these challenges, the passive ones in both the informal and semiformal categories will not formalize their businesses by giving such excuses.

Originality/value

This study contributes to the extant literature on informal entrepreneurship by providing initial empirical evidence on how the personal traits of the entrepreneurs influence their formalization decisions specifically.

Details

New England Journal of Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2574-8904

Keywords

Open Access
Article
Publication date: 24 October 2023

Iraklis Dimitriadis

This article aims to explore the engagement of refugees and asylum seekers (RAS) in informal and precarious jobs from a civil society actors' perspective. Despite a burgeoning…

Abstract

Purpose

This article aims to explore the engagement of refugees and asylum seekers (RAS) in informal and precarious jobs from a civil society actors' perspective. Despite a burgeoning literature on refugee integration and a focus on institutional integration programmes, little is known about the early insertion of RAS into informal and precarious employment as an alternative to subsidised integration programmes, when these are available.

Design/methodology/approach

This article draws on rich qualitative data collected through in-depth interviews with social workers, volunteers and other professionals supporting migrants.

Findings

Data analysis shows that migrants' insertion in informal jobs and their rejection of integration programmes may be the result of people's need to access financial capital to cover actual and future needs. Although such an engagement may be criticised for hampering RAS’ integration, it can be seen as an important source of agency against insecurity surrounding one's legal status.

Originality/value

This article highlights the importance of legal status precarity in shaping informal workers' agency and perceptions of them, opening up a debate on the relevance of informal work in terms of long-term integration and future migration trajectories.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 31 October 2023

Faizan Khan Sherwani, Sanaa Zafar Shaikh, Shilpa Behal and Mohd Shuaib Siddiqui

The purpose of this paper is to analyse the determinants of financial inclusion among women-owned informal enterprises in India.

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Abstract

Purpose

The purpose of this paper is to analyse the determinants of financial inclusion among women-owned informal enterprises in India.

Design/methodology/approach

The study is based on a primary survey of 321 informal enterprises. The data has been collected through a structured questionnaire. A chi-square test has been used to examine the significant association between the characteristics of informal enterprises and their owners and financial inclusion. A logistic regression model has been developed to analyse the determinants of financial inclusion among women-owned informal enterprises.

Findings

A significant and negative association has been found between business duration and entrepreneurs’ experiences with financial inclusion. In addition, the chi-square test shows a significant association between resource capability, use of ICT by enterprises and financial inclusion. Further, logistics regression shows that duration of business, entrepreneurial experience, resource capability in terms of machinery and equipment use, and ICT are significant determinants of financial inclusion among women-owned informal enterprises.

Practical implications

There are several practical implications for national policymakers and other stakeholders, such as banks and international bodies working on financial inclusion. It is suggested that while designing the policy for financial inclusion among woman-owned informal enterprises, it should ensure that experience and older woman entrepreneurs are included in financial inclusion schemes.

Originality/value

There has been very few research on financial inclusion in woman-owned businesses. However, no research has been conducted on the financial inclusion of women-owned informal businesses. This study fills a gap by investigating the factors that influence financial inclusion in women-owned informal businesses.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Open Access
Article
Publication date: 28 April 2023

Sinhle Thwala, Tyanai Masiya and Stellah N. Lubinga

This study aims to investigates the contribution of the informal sector towards secure livelihoods. Using a case study design, the study focusses on Mandela park, situated in…

4070

Abstract

Purpose

This study aims to investigates the contribution of the informal sector towards secure livelihoods. Using a case study design, the study focusses on Mandela park, situated in Khayelitsha Township, Cape Town, in the Western Cape province of South Africa. Khayelitsha is predominantly an old township established by the apartheid government using unjust segregation laws to foster spatial planning that isolated people of colour in areas with insufficient infrastructure and informal economic activities. Therefore, informal trading became a survival strategy in Khayelitsha, attracting an increasing number of informal traders in public spaces within the township in pursuit of livelihoods. Informal activities are generally conducted to generate income and secure sustainable livelihoods.

Design/methodology/approach

This study uses a qualitative research design, incorporating structured interviews instrumental in data collection and in-depth thematic analysis.

Findings

The study findings reveal that the informal sector positively contributes to the sustainable livelihoods of those involved in the informal sector and the relatives of those through income generation, family support, wealth creation, source of employment, business incubation and innovation and creativity.

Originality/value

The study concludes that given the increasing unemployment rate in South Africa, caused by the stagnant economic growth rate, policymakers should rethink their policies on the informal economy, acknowledge the sector's relevance and support the sector.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 19 April 2023

Rania Moaaz and Sarah Mansour

This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal…

1061

Abstract

Purpose

This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal sector.

Design/methodology/approach

This paper uses an experimental methodology to examine the impact of behavioral interventions on the formalization of the Egyptian informal sector. Specifically, it conducts a survey experiment on a total of 240 informal businesses, operating in the Egyptian informal sector. The primary data collected from the survey experiment is then analyzed using a binary logistic regression to assess the impact of the behavioral primes on the probability of joining the formal market.

Findings

The empirical findings of the survey experiment indicate that the biggest obstacle facing informal businesses is finding a formal source of finance that could help them in penetrating the market. Providing informal businesses with information on funding opportunities offered by the ministry of micro, small and medium enterprises (MSME) significantly increased the probability of joining the formal sector to benefit from this opportunity.

Originality/value

This paper is the first to apply behavioral primes, in the form of informational cues, to the Egyptian case of informal business owners. Previous research on the use of behavioral nudges and primes has focused mainly on the western economies.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 11 July 2017

Joanna Shapland and Jason Heyes

Recent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating…

3839

Abstract

Purpose

Recent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating formal economy working conditions separately from research on the informal economy). The question is whether the means of work and benefits to the worker for formal and informal work are now as different as the former images of formal and informal economy work imply under a “jobs-for-life” economy. The purpose of this paper is to consider whether the current aim of government regulation of the informal economy – to formalise it – is actually of benefit to workers, as might be supposed.

Design/methodology/approach

This paper considers recent research findings on the formal and informal economy, using official government statistics for the UK and more detailed European studies on the informal economy.

Findings

This paper argues that formal employment in the UK is becoming more casualised, with less associated benefits to employees. Though it is still of benefit to the state to formalise informal work (to increase tax take), some of the links between formalisation and a good working environment for workers are being broken, which may lead to the informal economy becoming more popular and requiring different priorities in its regulation.

Originality/value

This paper argues that we need to change our assumptions and image of work in the formal economy, compared to that in the informal economy.

Details

International Journal of Sociology and Social Policy, vol. 37 no. 7/8
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 13 August 2021

Colin Williams and Jan Windebank

The aim of this paper is to evaluate contrasting ways of tackling self-employment in the informal sector. Conventionally, the participation of the self-employed in the informal…

1173

Abstract

Purpose

The aim of this paper is to evaluate contrasting ways of tackling self-employment in the informal sector. Conventionally, the participation of the self-employed in the informal sector has been viewed as a rational economic decision taken when the expected benefits outweigh the costs, and thus enforcement authorities have sought to change the benefit-to-cost ratio by increasing the punishments and chances of being caught. Recently, however, neo-institutional theory has viewed such endeavor as a product of a lack of vertical trust (in government) and horizontal trust (in others) and pursued trust-building strategies to nurture voluntary compliance.

Design/methodology/approach

To evaluate these contrasting policy approaches, data are reported from special Eurobarometer survey 92.1 conducted in 2019 across 28 European countries (the 27 member states of the European Union and the United Kingdom) involving over 27,565 interviews.

Findings

Using probit regression analysis, the finding is that the likelihood of participation in informal self-employment is not associated with the level of expected punishments and chances of being caught, but is significantly associated with the level of vertical and horizontal trust, with a greater likelihood of participation in informal self-employment when there is lower vertical and horizontal trust.

Practical implications

The outcome is a call for state authorities to shift away from the use of repressive policy measures that increase the penalties and chances of being caught and toward trust-building strategies to nurture voluntary compliance. How this can be achieved is explored.

Originality/value

Evidence is provided to justify a shift toward seeking trust-building strategies by state authorities to engender voluntary compliance among the self-employed operating in the informal sector in Europe.

Details

Fulbright Review of Economics and Policy, vol. 1 no. 1
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 11 July 2017

Monder Ram, Paul Edwards, Trevor Jones and Maria Villares-Varela

The purpose of this paper is to assess ways in which informality can be understood and reviews an emerging area of management scholarship. The origins and nature of informality…

6687

Abstract

Purpose

The purpose of this paper is to assess ways in which informality can be understood and reviews an emerging area of management scholarship. The origins and nature of informality are discussed with the aid of two different theoretical tools: “workplace sociology” (WS) and “mixed embeddedness” (ME).

Design/methodology/approach

The analysis is grounded in empirical material reflecting different aspects of informality mainly within the ethnic economy, such as a study on the implementation of the National Minimum Wage regulations (Ram et al., 2007; Jones et al., 2004, 2006).

Findings

The authors argue that the combination of WS and ME provides a valuable means of content and character of informality. It can also help to explaining variations and patterns within the informal economy, as well as understanding new forms of informality in the ethnic economy and beyond in “superdiverse” contexts.

Originality/value

This paper bridges two different theoretical approaches to explain the interactions between the firm and state regulations, as well as the workplace relations between employer and employees.

Details

International Journal of Sociology and Social Policy, vol. 37 no. 7/8
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 11 July 2017

Ana Carolina Ogando, Sally Roever and Michael Rogan

This paper explores the perceptions and experiences of women and men who work as informal waste collectors in four different cities. The purpose of this paper is to map out how…

6602

Abstract

Purpose

This paper explores the perceptions and experiences of women and men who work as informal waste collectors in four different cities. The purpose of this paper is to map out how and to what extent occupational, political-legal, economic and social dynamics are experienced differently by gender in a highly vulnerable segment of the urban informal economy, and explore gender differences in these workers’ coping strategies and the levels of action they develop to protect their livelihoods.

Design/methodology/approach

The analysis is based on a mixed methods study which combined a quantitative survey of informal workers with a qualitative participatory methodology. Study participants were drawn from a purposive sample of informal workers who belong to, or are affiliated with, membership-based workers’ organisations. The sample consists of waste pickers (n=614) from Belo Horizonte, Brazil; Bogotá, Colombia; Durban, South Africa; and Nakuru, Kenya.

Findings

The data show that despite significant differences between women and men upon entry into (informal) employment, their perceptions of key drivers and impacts are largely similar, with the exception of concerns around various types of physical security among women. They also indicate that levels of action among men and women waste pickers are only moderately influenced by gender, but are strongly influenced by the degree of organisation in the sector and the symbolic assets held by workers. The findings also illustrate the way in which gendered power dynamics operate within the informal recycling sector and how different levels of sector organisation and development often contribute to opportunities for collective action and, in turn, a reduction in gendered vulnerabilities.

Originality/value

The study offers a new policy angle which connects the level of sector organisation and development with the levels of action taken by informal workers in adapting to different types of shocks, as well as what this means in terms of gender empowerment.

Details

International Journal of Sociology and Social Policy, vol. 37 no. 7/8
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 8 July 2022

Busani Moyo

This study aims to investigate the factors that affect the likelihood of formalizing informal sector activities in 13 Sub-Saharan African countries, using World Bank enterprise…

3305

Abstract

Purpose

This study aims to investigate the factors that affect the likelihood of formalizing informal sector activities in 13 Sub-Saharan African countries, using World Bank enterprise survey data collected between the periods 2009 and 2018. Notwithstanding the great contribution of the informal economy in Africa, developing countries may stand to gain more if they make inroads in formalizing the informal sector.

Design/methodology/approach

Since the dependent variable is binary taking the value of one if the firm is willing to formalize and zero otherwise, the study will employ a discrete choice probit model.

Findings

Results inter alia show that firms that are more likely to formalize are young, owned by individuals with high levels of education and, have registered before. Governments should therefore target firms that are young and provide them with information about the benefits of registration, and if these firms are owned by experienced and educated individuals, the likelihood for them to register would be high.

Research limitations/implications

The study uses cross sectional data and therefore cannot capture time variant factors affecting the probability to register and also cannot correct effectively for endogeneity.

Practical implications

Governments should therefore target firms that are young and provide them with as much information as possible about the benefits of registration, and if these firms are owned by experienced and educated individuals, the likelihood to convince them to register would be high. They should also reduce the cost of registration so as to improve net benefits in line with the rational exit view.

Social implications

Formalizing informal activities will help improve the performance of these firms, reduce vulnerable employment as well as crime, poverty and inequality. Providing decent operating and working conditions to informal players will reduce social and political unrest.

Originality/value

The African continent is home to many informal firms accounting for roughly 55% of economic activity with 90% of workers eking out a living in a sector that does not respect worker rights, provide decent working conditions and where changes in growth have done little to reduce its size. Regulatory reforms have also been implemented resulting in the number of start-up registration procedures falling from 11 in 2003 to seven in 2019. The uniqueness of Sub Saharan Africa in terms of entrepreneurial culture, political, institutional and economic conditions as well as lack of consensus in the extant empirical literature make this study pertinent.

Details

African Journal of Economic and Management Studies, vol. 13 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

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