The Contextual Dimensions Of Informal Economy And Entrepreneurship

Résumé: This study investigates the global dynamics of informal economy and the need for the coexistence of both the informal and formal economy. Developing and developed countries are beset with various forms of social and economic problems such as unemployment, poverty levels, informal jobs, and global issues. Informal Entrepreneurship remains a focal means to reduce unemployment and create jobs in many economies. Using the Institutional theory, the dynamics of informal economy and entrepreneurship was investigated using a qualitative approach and secondary data from the International Labour Organization and Women in Informal Employment:Globalizing and Organizing datasets. The findings depict the need to ensure that both the informal and formal economy coexist well rather than merging them due to their interwoven nature . This calls for the adoption of a system and holistic perspective for studying facets of informal-formal entrepreneurship in different contexts Informal economy and informal entrepreneurship are essential for the reduction of global unemployment and development of innovation in the value chain in their contexts. Globally, informal economy and informal entrepreneurship provides safety nets, source of livelihood and pay informal levies that contribute to economic growth and development. The study shows how informal entrepreneurship contributes to their business environment. The contextual evidence from the literature justify the necessity for informal entrepreneurship and economy due to interplay of imperfect market conditions, institutional voids, entrepreneurial behavior, and local business dynamics.

Publié dans la revue: مجلة بحوث الإدارة والاقتصاد