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The Nature Of Entrepreneurship In The Informal Sector: Evidence From England


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    (School of Management, University of Sheffield, 9 Mappin Street, Sheffield, S1 4DT, United Kingdom)

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    Mirroring the representation of informal workers in a third world context as displaying entrepreneurial qualities, recent years have witnessed the emergence of a similar view of the informal sector in western nations as a hidden enterprise culture. Until now, however, few attempts have been made to analyze the nature and motives of informal entrepreneurs in western economies. Instead, it has been widely assumed that those engaged in entrepreneurship in the informal sector are those marginalized from the formal economy and driven out of necessity into this endeavor as a last resort. The aim of this paper is to evaluate critically this "marginalization thesis". Reporting the findings of face-to-face structured interviews with 130 informal entrepreneurs in England, the conventional representation of these entrepreneurs as necessity-driven, as well as an emergent depiction of them as opportunity-driven, is transcended. Instead, a richer and more textured understanding of informal entrepreneurship is developed that replaces such either/or thinking by a both/and approach that depicts how the majority are concurrently both necessity- and opportunity-driven. The paper then concludes by exploring the public policy implications of this rereading of the nature of informal entrepreneurship in western economies.

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    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Journal of Developmental Entrepreneurship.

    Volume (Year): 12 (2007)
    Issue (Month): 02 ()
    Pages: 239-254

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    Handle: RePEc:wsi:jdexxx:v:12:y:2007:i:02:p:239-254

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    Keywords: Underground economy; necessity entrepreneurs; opportunity entrepreneurs; England;


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    Cited by:
    1. Fara Azmat & Ramanie Samaratunge, 2009. "Responsible Entrepreneurship in Developing Countries: Understanding the Realities and Complexities," Journal of Business Ethics, Springer, vol. 90(3), pages 437-452, December.
    2. Syed Awais Ahmad Tipu, 2012. "What have we learned? Themes from the literature on necessity driven entrepreneurship," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1), pages 70-91.


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