ABSTRACT
Informal exchange in developing countries and transitional economies has long been an important subject of interest for researchers (de Soto 1989; Foster 1948; Foster 1961; Geertz 1962; Koo and Smith 1983; Morris and Pitt 1995; Portes, Castells and Benton 1989; Rosser, Rosser and Ahmed 2000; Tokman, 1978). Although the level of technology involved is often limited, there are nevertheless benefits derived from this kind of activity. At the household level, informal entrepreneurship can reduce poverty (see Mutungi and Ghaye, Chapter 16). Thai and Turkina (see Chapter 1) confirm that informal entrepreneurship is more vibrant in poorer countries than elsewhere. As suggested by Ayandé (see Chapter 15), informal entrepreneurs may remain in this sector and never formalize due to a lack of managerial knowledge.
