Entry and stay in the informal economy: qualitative findings from a least developed country

Abdallah, Gorah, and Eijdenberg, Emiel (2019) Entry and stay in the informal economy: qualitative findings from a least developed country. Journal of Enterprising Culture, 27 (2). pp. 115-145.

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Abstract

This study explores the factors determining the entry and stay of entrepreneurs in the informal economy in a Least Developed Country (LDC): Tanzania. Qualitative data from a focus group with six experts, and individual interviews with two experts and 15 entrepreneurs from the informal economy, were analysed. The results show that (1) necessity motivations are important for the entry and stay of entrepreneurs, as well as (2) the unattractive factors of the formal economy (e.g. degree of excessive regulations regarding high taxes)/attractive factors of the informal economy (e.g. little procedures, low capital requirements) and (3) low levels of education possessed by entrepreneurs, emerged as essential. This study enriches the literature with personal narratives of entrepreneurial activities from the micro level. Therefore, many detailed factors are revealed of the lives of entrepreneurs and experts, dealing in one way or the other with the informal economy.

Item ID: 60111
Item Type: Article (Research - C1)
ISSN: 1793-6330
Keywords: developing countries, education, entrepreneurial motivation, entrepreneurs
Copyright Information: © World Scientific Publishing Company.
Date Deposited: 14 Aug 2019 07:44
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150304 Entrepreneurship @ 100%
SEO Codes: 97 EXPANDING KNOWLEDGE > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services @ 100%
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