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Effects of individual and household characteristics on informal entrepreneurship among youths in Senegal

Author

Listed:
  • Ibrahima Barry

    (Cheikh Anta Diop University)

  • Lassana Cissokho

    (Cheikh Anta Diop University)

Abstract

This paper investigates the determinants of entrepreneurship among young people aged between 15 and 35 years in the informal sector in Senegal. The latter contributes to around 50% of GDP and harbors around 90% of businesses and 90% of total employment in the country. A probabilistic model is used to estimate the effects of individual and household characteristics on young people’s choice to engage in informal entrepreneurship. The data at hand come from the Survey on Youth Transition in Senegal, better known as the DEMTREND Survey (World Bank, 2015). The survey collected information on education, employment, entrepreneurship, and risk preference, in addition to other characteristics related to individuals. The results reveal that young people with primary or secondary levels of education and those who have attended only Quranic school are more likely to become entrepreneurs in the informal sector than their peers, probably because of their inability to land formal jobs. In addition, risk lovers are more likely to be informal entrepreneurs than risk-averse individuals. Moreover, in addition to laying out that family characteristics matter, the results show that the position of an individual’s household in terms of wealth distribution has a significant influence on their likelihood of engaging in informal entrepreneurship. The results are robust to the use of different types of models, such as the Tobit model.

Suggested Citation

  • Ibrahima Barry & Lassana Cissokho, 2025. "Effects of individual and household characteristics on informal entrepreneurship among youths in Senegal," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 15(1), pages 1-15, December.
  • Handle: RePEc:spr:jglont:v:15:y:2025:i:1:d:10.1007_s40497-024-00420-5
    DOI: 10.1007/s40497-024-00420-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Informal entrepreneurship; Discrete regression; Youth; Education; Wealth;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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