EXAMINING THE DETERMINANTS OF THE LEVEL OF INFORMALIZATION OF MICRO-ENTERPRISES IN A DEVELOPMENTAL URBAN CONTEXT

Joseph Omoloba () and Christophe Estay
Additional contact information
Joseph Omoloba: LIRSA, CNAM, Hesam Université, Paris, France
Christophe Estay: Ferrrandi Paris, Paris, France

Journal of Developmental Entrepreneurship (JDE), 2023, vol. 28, issue 01, 1-17

Abstract: This study aims to identify the key determinants of the level of informalization of micro-enterprises in Nigeria. We seek to understand the motives of entrepreneurs doing business in different segments of the informal sector and to clarify further the relationship between formal and informal economic activity. To fill the research gap, we developed a theoretical framework that focuses on a decision matrix regarding the level of informality. The quantitative approach involved a sample of 120 entrepreneurs operating in the Nigerian informal economy. Our results show that institutional constraints significantly affect the decision to engage in the informal sector. The institutional constraint is related to ambiguity in tax assessment and business registration policies and procedures, including the mismanagement of those in power. We conclude that the presence of informal firms is not always as harmful as it sometimes is considered to be.

Keywords: Informal sector; social exclusion; institutional voids; informality; micro-enterprise (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1084946723500061
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jdexxx:v:28:y:2023:i:01:n:s1084946723500061

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1084946723500061

Access Statistics for this article

Journal of Developmental Entrepreneurship (JDE) is currently edited by Peter Koveos

More articles in Journal of Developmental Entrepreneurship (JDE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().