Determinants of Informal Entrepreneurship in Africa

Amanze Ejiogu; Obiora Okechukwu; Chibuzo Ejiogu; Andrews Owusu; Ogechi Adeola

Determinants of Informal Entrepreneurship in Africa

Amanze Ejiogu, Obiora Okechukwu, Chibuzo Ejiogu, Andrews Owusu, Ogechi Adeola

Research output: Contribution to journal › Article › peer-review

Abstract

This study investigates the determinants of informal entrepreneurship in Africa. Using a cross-section of 21,954 firms from 47 African countries, the study estimates several multivariate models to examine the factors that are associated with the decision of firms to register at the start of their operation and the length of time to remain unregistered. The findings show that entrepreneurship in the informal sector is complex and context-bound as contextual factors unique to Africa, such as, corruption, political instability, crime rate, infrastructure (electricity and transportation), access to land and finance, influence the entrepreneur’s decision to register their firm at the start of its operation. The length of time firms remain unregistered is shown to be positively correlated to access to finance and infrastructural availability and negatively related to crime and political instability. These results vary based on the size of the business with larger businesses being impacted less by these variables.

Original language	English
Pages (from-to)	(In-Press)
Journal	International Journal of Entrepreneurship and Small Business
Volume	(In-Press)
Publication status	Accepted/In press - 30 Mar 2019

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Accepted author manuscript, 157 KB
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Andrews Owusu
- School of Economics, Finance and Accounting - Assistant Professor Academic
- Faculty Research Centre for Financial & Corporate Integrity - Associate
Person: Other, Teaching and Research

Cite this

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title = "Determinants of Informal Entrepreneurship in Africa",

abstract = "This study investigates the determinants of informal entrepreneurship in Africa. Using a cross-section of 21,954 firms from 47 African countries, the study estimates several multivariate models to examine the factors that are associated with the decision of firms to register at the start of their operation and the length of time to remain unregistered. The findings show that entrepreneurship in the informal sector is complex and context-bound as contextual factors unique to Africa, such as, corruption, political instability, crime rate, infrastructure (electricity and transportation), access to land and finance, influence the entrepreneur{\textquoteright}s decision to register their firm at the start of its operation. The length of time firms remain unregistered is shown to be positively correlated to access to finance and infrastructural availability and negatively related to crime and political instability. These results vary based on the size of the business with larger businesses being impacted less by these variables.",

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AU - Ejiogu, Chibuzo

AU - Owusu, Andrews

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