IDEAS home Printed from https://ideas.repec.org/a/spr/futbus/v10y2024i1d10.1186_s43093-024-00316-6.html
   My bibliography  Save this article

Striving for a life out of shadows: informal entrepreneurial dynamics in time of crisis

Author

Listed:
  • Jacques Yana Mbena

    (University of Sorbonne Paris Nord
    Research Projects)

  • Kwabena Obiri Yeboah

    (Catholic University of Ghana)

Abstract

Motivated by the unique opportunity that a crisis period provides for capturing and reassessing specific entrepreneurial behaviors, this paper takes on the debate about the entrepreneurial attributes of informal ventures “IVent” and their endeavor to formalize. In doing so, Cronbach’s alpha rationales and contingency analysis are applied to quantitative data from street vendors of the main markets of Cameroon to investigate informal entrepreneurial behavioral dynamics and their impact on a hypothetical willingness for change during the COVID-19 pandemic. It was uncovered that IVent have activated entrepreneurial attributes of resilience, intention and orientation. Also, specific composites or variables of entrepreneurial orientation and resilience have been found more supportive of IVent’s endeavor to formalize than others. The novelties in that regard are: (1) While most of the variables related to the composite of innovativeness reinforce the desire to formalize, the variable of “routine” plays a hindering role. (2) The composite of proactiveness is not significantly related to the willingness to formalize. (3) The composite of risk-taking has proven significant to IVent’s transformation aims. And (4) contrary to all other variables of the attribute of resilience and self-efficacy, the variable of behavior control appears to hamper the aim to move out of the shadows. It is argued that facilitating Ivent’s dynamics and aspiration to formalize necessitates policymakers to advance policies that support the development of the uncovered determining composites. Furthermore, academia should undertake an extensive investigation into the role that the captured non-significant variables, attributes, and composites may play in fostering IVent's shadowed business lifecycle. Graphical abstract

Suggested Citation

  • Jacques Yana Mbena & Kwabena Obiri Yeboah, 2024. "Striving for a life out of shadows: informal entrepreneurial dynamics in time of crisis," Future Business Journal, Springer, vol. 10(1), pages 1-16, December.
    • Handle: RePEc:spr:futbus:v:10:y:2024:i:1:d:10.1186_s43093-024-00316-6
    DOI: 10.1186/s43093-024-00316-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s43093-024-00316-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s43093-024-00316-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cavotta, Valeria & Dalpiaz, Elena, 2022. "Good apples in spoiled barrels: A temporal model of firm formalization in a field characterized by widespread informality," Journal of Business Venturing, Elsevier, vol. 37(2).
    2. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    3. Michael H. Morris & Donald F. Kuratko & David B. Audretsch & Susana Santos, 2022. "Overcoming the liability of poorness: disadvantage, fragility, and the poverty entrepreneur," Small Business Economics, Springer, vol. 58(1), pages 41-55, January.
    4. Léo Paul Dana, 2019. "Entrepreneurship in Bolivia: An Ethnographic Enquiry," Springer Books, in: Veland Ramadani & Léo-Paul Dana & Vanessa Ratten & Abdylmenaf Bexheti (ed.), Informal Ethnic Entrepreneurship, pages 133-147, Springer.
    5. Daniel Béland & Alex Jingwei He & M Ramesh, 2022. "COVID-19, crisis responses, and public policies: from the persistence of inequalities to the importance of policy design [The impact of COVID-19 on gender equality]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 41(2), pages 187-198.
    6. Jacques Yana Mbena, 2022. "The status quo of research in sustainable FDI: exploring the theoretical agenda and policy inferences in West and Central Africa," Future Business Journal, Springer, vol. 8(1), pages 1-16, December.
    7. Eghosa Igudia & Robert Ackrill & Michael Machokoto, 2022. "Institutional incongruence, the everyday, and the persistence of street vending in Lagos: a demand-side perspective," Environment and Planning A, , vol. 54(6), pages 1256-1276, September.
    8. 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.
    9. Uwe Cantner & James A. Cunningham & Erik E. Lehmann & Matthias Menter, 2021. "Entrepreneurial ecosystems: a dynamic lifecycle model," Small Business Economics, Springer, vol. 57(1), pages 407-423, June.
    10. Nahrin Rahman Swarna & Iffat Anjum & Nimmi Nusrat Hamid & Golam Ahmed Rabbi & Tariqul Islam & Ezzat Tanzila Evana & Nazia Islam & Md Israt Rayhan & KAM Morshed & Abu Said Md Juel Miah, 2022. "Understanding the impact of COVID-19 on the informal sector workers in Bangladesh," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-20, March.
    11. Robert Fairlie, 2020. "The impact of COVID‐19 on small business owners: Evidence from the first three months after widespread social‐distancing restrictions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 727-740, October.
    12. repec:idq:ictduk:13663 is not listed on IDEAS
    13. Jaffar Abbas & Shahid Mahmood & Hashim Ali & Muhammad Ali Raza & Ghaffar Ali & Jaffar Aman & Shaher Bano & Mohammad Nurunnabi, 2019. "The Effects of Corporate Social Responsibility Practices and Environmental Factors through a Moderating Role of Social Media Marketing on Sustainable Performance of Business Firms," Sustainability, MDPI, vol. 11(12), pages 1-33, June.
    14. Raymond K. Van Ness & Charles F. Seifert & Janet H. Marler & William J. Wales & Mark E. Hughes, 2020. "Proactive Entrepreneurs: Who Are They and How Are They Different?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(1), pages 148-175, March.
    15. Colin C. Williams, 2015. "Tackling Entrepreneurship In The Informal Sector: An Overview Of The Policy Options, Approaches And Measures," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-21.
    16. Rajneesh Narula, 2020. "Policy opportunities and challenges from the COVID-19 pandemic for economies with large informal sectors," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 302-310, September.
    17. Andreas Kuckertz & Leif Brändle, 2022. "Creative reconstruction: a structured literature review of the early empirical research on the COVID-19 crisis and entrepreneurship," Management Review Quarterly, Springer, vol. 72(2), pages 281-307, June.
    18. Nnamdi O. Madichie & Ayantunji Gbadamosi & Pantaleo Rwelamila, 2021. "Entrepreneurship and the Informal Sector: Challenges and Opportunities for African Business Development," Journal of African Business, Taylor & Francis Journals, vol. 22(4), pages 441-447, October.
    19. Omri, Anis, 2020. "Formal versus informal entrepreneurship in emerging economies: The roles of governance and the financial sector," Journal of Business Research, Elsevier, vol. 108(C), pages 277-290.
    20. Joao Ayres & Gajendran Raveendranathan, 2023. "Firm Entry and Exit during Recessions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 47, pages 47-66, January.
    21. Marco Cucculelli & Valentina Peruzzi, 2020. "Post-crisis firm survival, business model changes, and learning: evidence from the Italian manufacturing industry," Small Business Economics, Springer, vol. 54(2), pages 459-474, February.
    22. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    23. Anuradha Joshi & Wilson Prichard & Christopher Heady, 2014. "Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research," Journal of Development Studies, Taylor & Francis Journals, vol. 50(10), pages 1325-1347, November.
    24. Said Muhammad & Ximei Kong & Shahab E. Saqib & Nicholas J. Beutell, 2021. "Entrepreneurial Income and Wellbeing: Women’s Informal Entrepreneurship in a Developing Context," Sustainability, MDPI, vol. 13(18), pages 1-22, September.
    25. Gannon, Kate & Castellano, Elena & Eskander, Shaikh & Agol, Dorice & Diop, Mamadou & Conway, Declan & Sprout, Liz, 2022. "The triple differential vulnerability of female entrepreneurs to climate risk in sub-Saharan Africa: gendered barriers and enablers to private sector adaptation," LSE Research Online Documents on Economics 115222, London School of Economics and Political Science, LSE Library.
    26. Mohammad Imran Hossain, 2021. "COVID-19 Impacts on Employment and Livelihood of Marginal People in Bangladesh: Lessons Learned and Way Forward," South Asian Survey, , vol. 28(1), pages 57-71, March.
    27. Brian McCaig & Nina Pavcnik, 2021. "Entry and Exit of Informal Firms and Development," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(3), pages 540-575, September.
    28. Margarida Rodrigues & Mário Franco & Nuno Sousa & Rui Silva, 2021. "Reviewing COVID-19 Literature on Business Management: What It Portends for Future Research?," Sustainability, MDPI, vol. 13(11), pages 1-21, May.
    29. Colin C. Williams & Sara Nadin, 2010. "Entrepreneurship And The Informal Economy: An Overview," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 361-378.
    30. Alfredo De Massis & Emanuela Rondi, 2020. "Covid‐19 and the Future of Family Business Research," Journal of Management Studies, Wiley Blackwell, vol. 57(8), pages 1727-1731, December.
    31. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    32. Eggers, Fabian, 2020. "Masters of disasters? Challenges and opportunities for SMEs in times of crisis," Journal of Business Research, Elsevier, vol. 116(C), pages 199-208.
    33. Colin C. Williams & Muhammad S. Shahid, 2016. "Informal entrepreneurship and institutional theory: explaining the varying degrees of (in)formalization of entrepreneurs in Pakistan," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 1-25, January.
    34. Covin, Jeffrey G. & Rigtering, J.P. Coen & Hughes, Mathew & Kraus, Sascha & Cheng, Cheng-Feng & Bouncken, Ricarda B., 2020. "Individual and team entrepreneurial orientation: Scale development and configurations for success," Journal of Business Research, Elsevier, vol. 112(C), pages 1-12.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    3. Kaisu Puumalainen & Helena Sjögrén & Juha Soininen & Pasi Syrjä & Sascha Kraus, 2023. "Crisis response strategies and entrepreneurial orientation of SMEs: A configurational analysis on performance impacts," International Entrepreneurship and Management Journal, Springer, vol. 19(4), pages 1527-1559, December.
    4. Ioannis Giotopoulos & Alexander S. Kritikos & Aggelos Tsakanikas, 2023. "A lasting crisis affects R&D decisions of smaller firms: the Greek experience," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1161-1175, August.
    5. Cameron J. Borgholthaus & Joshua V. White & Erik Markin & Vishal K. Gupta, 2023. "Venture creation in the aftermath of COVID-19: The impact of US governor party affiliation and discretion," Small Business Economics, Springer, vol. 61(2), pages 655-674, August.
    6. Usman Ladan & Colin C. Williams, 2019. "Evaluating Theorizations Of Informal Sector Entrepreneurship: Some Lessons From Zamfara, Nigeria," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-18, December.
    7. Colin C. Williams & Abbi M. Kedir, 2017. "Evaluating The Impacts Of Starting Up Unregistered On Firm Performance In Africa," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-20, September.
    8. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    9. Eunice Maria M. N. Dos Santos & João J. Ferreira, 2017. "Analyzing Informal Entrepreneurship: A Bibliometric Survey," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-20, December.
    10. Sam Z. Njinyah & Simplice A. Asongu, 2023. "Unregistered Firms, Financial Access and Innovation," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(2), pages 307-346, July.
    11. Nguyen, Bach & Tran, Hai-Anh & Stephan, Ute & Van, Ha Nguyen & Anh, Pham Thi Hoang, 2024. "“I can't get it out of my mind” - Why, how, and when crisis rumination leads entrepreneurs to act and pivot during crises," Journal of Business Venturing, Elsevier, vol. 39(4).
    12. Colin C. Williams & Brunilda Kosta, 2019. "Evaluating Institutional Theories Of Informal Sector Entrepreneurship: Some Lessons From Albania," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-17, June.
    13. Brink, Siegrun & Weicht, Rebecca & Levering, Britta & Icks, Annette, 2022. "Unternehmertum während der Corona-Pandemie: Individuelle Resilienz," IfM-Materialien 293, Institut für Mittelstandsforschung (IfM) Bonn.
    14. DODERO ORTIZ DE ZEVALLOS Gino Felix & CLEMENTE-ALMENDROS José Antonio & BAHAMONDES ROSADO María Emilia, 2023. "The Covid-19 Crisis And The Financial Impact On Family Firms," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(2), pages 86-108, August.
    15. Rajapakshe, PSK & Gamage, SKN & Prasanna, RPIR & Jayasundara, JMSB & Ekanayake, EMS & Upulwehera, JMHM & Wijerathna, WAID & Abeyrathne, GAKNJ, 2020. "Social Capital, Performance of SMEs, and COVID-19 Pandemic," MPRA Paper 109530, University Library of Munich, Germany, revised 30 Aug 2020.
    16. Joao Capella-Ramos & Romina Guri, 2022. "Firm adaptation in COVID-19 times: The case of Portuguese exporting firms," GEE Papers 0169, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2022.
    17. Estrin, Saul & Guerrero, Maribel & Mickiewicz, Tomasz, 2024. "A framework for investigating new firm entry: The (limited) overlap between informal-formal and necessity-opportunity entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(4).
    18. Olivier Torrès & Alexandre Benzari & Christian Fisch & Jinia Mukerjee & Abdelaziz Swalhi & Roy Thurik, 2022. "Risk of burnout in French entrepreneurs during the COVID-19 crisis," Small Business Economics, Springer, vol. 58(2), pages 717-739, February.
    19. Brunetti, Marianna & Zaiceva, Anzelika, 2023. "Is Self-Employment for Migrants? Evidence from Italy," GLO Discussion Paper Series 1313, Global Labor Organization (GLO).
    20. repec:ers:journl:v:xxiv:y:2021:i:4b:p:788-798 is not listed on IDEAS
    21. Silvia Muzi & Filip Jolevski & Kohei Ueda & Domenico Viganola, 2023. "Productivity and firm exit during the COVID-19 crisis: cross-country evidence," Small Business Economics, Springer, vol. 60(4), pages 1719-1760, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:futbus:v:10:y:2024:i:1:d:10.1186_s43093-024-00316-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.