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Entrepreneurship in the Informal sector : examining the Determinants of the level of Informalisation of Micro-Enterprises in Nigeria

Abstract : his thesis reviews the primary considerations in answering the controversial questions about the Informal sector. The informal sector is a significant part of the Nigerian economy and provides goods and services to millions of Nigerians. It is also a vital source of employment, especially for those who cannot secure work in the formal sector. Regardless of the significance of the informal sector, it is often neglected and misunderstood. The sector comprises business activities that are not fully regulated by the government and other public authorities; however, most of these activities are legitimate but executed irregularly. The extant entrepreneurship literature on the informal economy in Nigeria has mostly focused on the concept and measuring its size rather than exploring the nature and motives of the people engaged in informal activities. Thus, the lack of conceptual evidence and consensus about the underlying factors driving individuals into informal economic activity constitutes a significant knowledge gap. To fill the gap, we developed a theoretical framework that focuses on constructs such as Social exclusion, opportunity exploitation, Business activity, Characteristics of enterprises, and the Decision matrix of the informality level. To validate the measurement scale of these different constructs and hypotheses, we conducted multivariate analyses grounded on a series of ordered logistic regressions. Our findings call on the importance of introducing the informal sector in undertaking policies that target the institutional void reform in Nigeria. These policies should also target the firms' access to finance, infrastructure, and training as practical tools are inducing the formalization process and fostering economic growth. Therefore, within this context, it is a very pertinent question underlying: What role does the informal sector serve in its evolution? Is it a new concept that provides a viable, useful, or dramatic shift in the way we tackle society's concerns and development; is it just an innovative marketing technique to attract capital and customers; or is it based purely on rhetoric and already exists in the form that business or organizations are today?By establishing a solid foundation that does not automatically perceive the sector as a panacea to solve economy and society's inefficiencies but instead treats it as a questionable entity within the shifting paradigm that is capitalism, the research study will address the following question; What are the determinants of the level of informalisation of micro-enterprises in Nigeria.
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Submitted on : Wednesday, February 16, 2022 - 7:50:50 PM
Last modification on : Wednesday, September 28, 2022 - 5:51:57 AM


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Joseph Olugbenga Omoloba. Entrepreneurship in the Informal sector : examining the Determinants of the level of Informalisation of Micro-Enterprises in Nigeria. Business administration. Cnam, 2021. English. ⟨tel-03577946⟩



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