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Informal Entrepreneurship and Past Experience in an Emerging Economy

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  • Cory R. A. Hallam
  • Gianluca Zanella

Abstract

Informal economies account for up to 70 per cent of GDP in developing countries, but few studies have explored informal entrepreneurship. To fill this gap, an exploratory study involving 855 university students in an emerging economy applies the Theory of Planned Behaviour (TPB) to study the cognitive process of informal entrepreneurship. The effect of past experience (PE) and necessity entrepreneurship on the intention to start a business is also explored. Our findings provide evidence that the decision to start a business in the informal economy reinforces the effect of subjective norms on entrepreneurial intentions (EIs). Implications for education programmes and for theory are discussed.

Suggested Citation

  • Cory R. A. Hallam & Gianluca Zanella, 2017. "Informal Entrepreneurship and Past Experience in an Emerging Economy," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 26(2), pages 163-175, September.
    • Handle: RePEc:sae:jouent:v:26:y:2017:i:2:p:163-175
    DOI: 10.1177/0971355717708843
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    References listed on IDEAS

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    Cited by:

    1. Esther Salvi & Frank-Martin Belz & Sophie Bacq, 2023. "Informal Entrepreneurship: An Integrative Review and Future Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(2), pages 265-303, March.
    2. Getahun Fenta Kebede, 2018. "Social Capital and Entrepreneurial Outcomes: Evidence from Informal Sector Entrepreneurs in Ethiopia," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 209-242, September.
    3. Getahun Fenta Kebede, 2020. "Network Locations or Embedded Resources? The Effects of Entrepreneurs’ Social Networks on Informal Enterprise Performance in Ethiopia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 630-659, June.
    4. Selçuk Akçay & Emre Karabulutoğlu, 2021. "Do remittances moderate financial development–informality nexus in North Africa?," African Development Review, African Development Bank, vol. 33(1), pages 166-179, March.

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