Search results

The “unplannable” is a welcomed exception to the formal order of urban planning. This opinion article explores some examples of informal urbanism and discusses its ambiguous relationship to public space and unplanned activities in the city. The informal sector offers important lessons about the adaptive use of space and its social role. The article examines the ways specific groups appropriate informal spaces and how this can add to a city’s entrepreneurship and success. The characteristics of informal, interstitial spaces within the contemporary city, and the numerous creative ways in which these temporarily used spaces are appropriated, challenge the prevalent critical discourse about our understanding of authorised public space, formal place-making and social order within the city in relation to these informal spaces.

The text discusses various cases from Chile, the US and China that illustrate the dilemma of the relationship between informality and public/private space today. One could say that informality is a deregulated self-help system that redefines relationships with the formal. Temporary or permanent spatial appropriation has behavioural, economic and cultural dimensions, and forms of the informalare not always immediately obvious: they are not mentioned in building codes and can often be subversive or unexpected, emerging in the grey area between legal and illegal activities.

The distinction between formality and informality has been a topic central for many scholarly fields. Without rejecting the usefulness of this distinction, the authors argued that instead of analyzing an empirical situation in terms of what is formal and what is informal, it could sometimes be fruitful to focus on what is stable and what is fluid.

This paper reports the results of review and analysis of secondary sources on the distinction between formality and informality, followed by a conceptualization of an alternative distinction between fluidity and stability. This conceptualization was inspired by a science and technology studies (STS) understanding of relations, and was assessed through applying it to a case of patient organizations’ participation in patient councils in Russia.

Stability and fluidity do not map neatly into formality and informality; rather, the stability and fluidity cut across these categories. The authors propose a view of both stability and fluidity as kinds of relations between elements of the societal fabric. The distinction proposed here could be especially fruitful when applied to analyses of (1) complex bureaucracies where formal requirements are extensive and potentially in conflict with each other and (2) oppressive situations where significant power imbalances exist.

Instead of providing yet another line of demarcation between formality and informality, this paper proposes a shift in attention to what is stable and what is fluid. This novel distinction can help not only in discerning how things actually work but also in bringing to the fore hitherto unnoticed forms of creativity, responsiveness and inclusion.

Motivated by a lack of evidence regarding the effect of migration on entrepreneurship in a highly informal country, such as Colombia, this paper has a twofold purpose. First, it explores how Venezuelan immigration affects entrepreneurial activity in Colombian regions. Second, it intends to shed light on this relationship, by distinguishing between formal and informal sectors.

With a sample of 1,776,063 individuals, from the Labor Survey Gran Encuesta Integrada de Hogares (GEIH) from the Departamento Administrativo Nacional de Estadística (DANE), the authors employ an instrumental variable approach to account for the selection of immigrants into locations with more or less desirable conditions.

The results suggest Venezuelan immigration positively influences self-employment and own-account workers, but negatively affects employers. However, once these immigrants proliferate in the informal sector, the effects increase.

This paper brings new insights into the intersection between immigration, unofficial economies, and entrepreneurship. First, while the prior literature focuses on migration from developing to developed countries, migratory flows between developing economies and its effects on local entrepreneurial activity remain unexplored. Second, although informality is mostly common in developing countries, little (albeit growing) evidence of its role in the relationship between migration and entrepreneurship research exists. Finally, the authors bring together these two phenomena to enhance our understanding of different types of entrepreneurial activities when immigration and informality take place. Policy implications are derived from these insights.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

This study explores the relationship between corruption and shadow economy (SE) by examining the potential links and interactions between these two phenomena to see whether it is a one-way or two-way relationship and a complementarity or substitution linkage.

Using a dataset comprised of 145 countries all over the world between 1996 and 2015, the authors apply the simultaneous two-step system generalized method of moments approach to address the research question.

The study findings support a positive bidirectional relationship between corruption and SE. As such, this study has provided evidence supporting the complementarity association. In the authors' further analyses, they point out that several factors can moderate this positive bidirectional linkage. In particular, while Foreign Direct Investment (FDI) inflows strengthen it, it is weakened by other institutional factors such as civil liberties and political rights. Finally, by splitting the full sample into three different subsamples and then examining countries at varying stages of economic development, the authors can gain valuable insights into the evolving dynamics of the relationship between corruption and SE. Specifically, while the authors observe that the positive direction of corruption to SE remains unchanged across different nations, they observe that the positive influence of SE on corruption is strongest among developed economies only.

The study findings provide an important policy implication. This study highlights the synergistic relationship between SE and corruption, indicating that reducing corruption will reduce the size of the SE. Consequently, this reduction in the SE can mitigate the adverse effects of corruption on economic development.

This paper is among the first empirical studies that critically investigate the interrelationship between SE and corruption. It then explores how this two-way linkage is conditional on some factors, such as economic development levels and institutional quality indicators.

The research study provides empirical insights on the relationship between entrepreneurial leadership (EL), entrepreneurial passion for founding (EPF), entrepreneurial bricolage (EB) and project success (PS), in the case of freelancers. The study aims to get a better understanding of whether freelancers, who behave like entrepreneurial leaders, can successfully complete projects through EB.

The study collected data from 209 freelancers through snowball sampling, in two waves, with a time-lag of fourteen days, to better examine the causality of variables. Data were analyzed by Model No. 4 and 7 (i.e. mediation and moderation, respectively) of Process macro.

Drawing on the effectuation theory, the results show that EB mediates the relationship between EL and PS and EPF moderates this relationship.

The freelancers can formally establish businesses later, after knowing whether they can complete these new types of projects. These online freelancing platforms can provide special services to freelancers who first want to test their skills on unrelated projects. In sum, the paper suggests that freelancers can be successful entrepreneurial leaders.

The EL, EPF, EB and PS are studied in the context of the informal sector, i.e. freelancing, which is the emerging working style in the world. It provides an in-depth understanding of phenomena in freelancers that lacks background literature.

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).

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).

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.

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.