Williams, C.C. orcid.org/0000-0002-3610-1933, Adom, K. and Horodnic, I.A. (2020) Determinants of the level of informalization of enterprises: some evidence from Accra, Ghana. Journal of Developmental Entrepreneurship, 25 (01). 2050004. ISSN 1084-9467
Abstract
Based on the recognition that enterprises operate at different levels of informality, this paper evaluates the determinants of their degree of informalization. To do so, a 2016 survey of the varying degrees of informalization of 171 entrepreneurs in Ghana is reported. The finding is that only 21% of enterprises were wholly informal and 16% wholly formal. Nearly two-thirds (63%) were neither wholly informal nor wholly formal. Higher levels of informalization are significantly associated with younger entrepreneurs, those with lower levels of educational attainment, lower household incomes and younger enterprises. It is also significantly associated with the wider institutional compliance environment. Higher levels of informality are present among entrepreneurs unaware of the need for registration, who lack vertical trust (i.e., do not believe the state does anything for them, and perceive there to be public sector corruption), view informality as normal (i.e., a normal practice in their family) and view all similar businesses as operating informally (i.e., lack horizontal trust). The paper concludes by discussing the theoretical and policy implications.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 World Scientific Publishing Co Pte Ltd. This is an author-produced version of a paper subsequently published in Journal of Developmental Entrepreneurship. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Entrepreneurship; informal sector; development economics; Ghana |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 25 Mar 2020 11:15 |
Last Modified: | 02 Dec 2021 17:20 |
Status: | Published |
Publisher: | World Scientific Publishing |
Refereed: | Yes |
Identification Number: | 10.1142/s1084946720500041 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:158729 |