Determinants of Informal Entrepreneurship in Africa

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

doi:10.1504/IJESB.2022.120552

Determinants of Informal Entrepreneurship in Africa

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

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

4 Citations (Scopus)

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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)	35-61
Number of pages	27
Journal	International Journal of Entrepreneurship and Small Business
Volume	45
Issue number	1
Early online date	11 Jan 2022
DOIs	https://doi.org/10.1504/IJESB.2022.120552
Publication status	Published - 2022

Bibliographical note

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

Africa
informal entrepreneurship
socio-cultural
corruption
crime

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1504/IJESB.2022.120552

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Cite this

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Determinants of Informal Entrepreneurship in Africa

Abstract

Bibliographical note

Keywords

UN SDGs

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