Although entrepreneurship in the informal economy occurs outside state regulatory systems, informal commercial activities account for an estimated 30% of economic activity around the world. Informal entrepreneurship goes unmonitored despite the fact that it significantly contributes to poverty reduction and economic development. As a result, the informal sector is open to unethical practices including corruption, worker exploitation, and natural environment abuse to name just a few. In the media, debates have formed around whether informal entrepreneurship should be assisted or legitimized. Hence, a deep understanding of the phenomenon is vitally important.

This book is the first on the market to offer models and approaches to informal entrepreneurship as well as to its prospects for economic development. Offering an in-depth examination of informal entrepreneurship in many different countries, it reveals the motivations for engaging in entrepreneurship in the informal economy, characteristics of informal entrepreneurship, and informal entrepreneurs’ response to ethical issues. This volume illustrates the relationship between formal and informal economies and the conditions for the benefits of informal entrepreneurship to outweigh its disadvantages. And finally, it gives recommendations about when and how the informal economy can be formalized, which sectors should be formalized, and which ones can remain informal. This book offers much-needed guidance for stakeholders involved in economic development programs and scholars and entrepreneurs interested in the field of informal entrepreneurship as it is developing around the globe.

part 1|62 pages

Determinants of Informal Entrepreneurship

chapter 1|16 pages

Determinants of Informal Entrepreneurship

A Cross-Country Analysis
ByMai Thi Thanh Thai, Ekaterina Turkina

chapter 2|15 pages

Informal versus Formal New Ventures

A Choice Analysis and Some Policy Implications
ByBernard Sinclair-Desgagné

chapter 3|16 pages

Evaluating the Competing Explanations for Informal Entrepreneurship

Some Lessons from Brazil
ByCollin C. Williams, Youssef Youssef

chapter 4|13 pages

Motivations of Entrepreneurs in the Informal Economy

Examples from Cambodia
ByScott A. Hipsher

part 2|34 pages

Financial Aspects of Informal Entrepreneurship

chapter 5|18 pages

Informal Venture Capital Investing in Emerging Asian Economies

ByWilliam Scheela, Edmundo Isidro, Thawatachai Jittrapanun

chapter 6|14 pages

Alternative Financial Services

An Essential Tool for Informal Entrepreneurs
ByLes Dlabay

part 3|46 pages

Organizational Forms of Informal Entrepreneurship

chapter 7|15 pages

Informal Online Entrepreneurship in South Korea

ByAmanda Min Chung Han

chapter 8|13 pages

Institutional Entrepreneurship in the Informal Economy

The Case of the Zambia National Marketeers Association
ByMarcus Møller Larsen

chapter 9|16 pages

Informal Entrepreneurs in Central America

A Labor of Love or Survival?
ByMichael J. Pisani

part 4|32 pages

Institutional Environment for Informal Entrepreneurship

chapter 10|16 pages

Unbundling Institutional Reform

The Case of a Garment Cluster in Lima, Peru, 1988–2008
ByMatthew Bird

chapter 11|14 pages

Tackling Informal Entrepreneurs

Tailoring Policy Measures to the Varieties of Informal Entrepreneurship
ByC. Williams Colin

part 5|48 pages

Sociocultural Contexts of Informal Entrepreneurship

chapter 12|15 pages

The Feminine Paradigm of Entrepreneurship in the Informal Economy

ByMarsha A. Tongel

chapter 13|16 pages

Enterprise Education for Small Artisanal Businesses

A Case Study of Sokoban Wood Village, Ghana
ByBernard A. Obeng, Richard K. Blundel, Ahmed Agyapong

chapter 14|15 pages

When Religion Meets Capitalism

A Study of the Role of Islam among North African Entrepreneurs in Montreal
ByJamel Stambouli, Sébastien Arcand

part 6|34 pages

The Role of Informal Entrepreneurship in Economic Development

chapter 15|16 pages

Informal Economy and Women Entrepreneurs

A Case Study of Senegal in Africa
ByAlpha Ayandé

chapter 16|16 pages

Enhancing Well-Being at the Household Level

The Impact of Informal Economy Activity on Poverty Reduction in the Traditional Ankole Kingdom of S.W. Uganda
ByMutungi Emmanuel, Tony Ghaye

part 7|12 pages

Concluding Remarks

chapter 17|10 pages

Informal Economy Entrepreneurship and Policy Implications

ByLéo-Paul Dana