Facilitating the formalisation of entrepreneurs in the informal economy: Towards a variegated policy approach
Journal of Entrepreneurship and Public Policy
ISSN: 2045-2101
Article publication date: 14 April 2014
Abstract
Purpose
Although it has been recognised that many entrepreneurs operate in the informal economy, little is so far known about their reasons for doing so. The purpose of this paper is to begin to unravel entrepreneurs’ rationales for trading in the informal economy in order to consider what policy measures need to be adopted to facilitate their formalisation.
Design/methodology/approach
To do this, the results of an empirical survey are reported conducted in Ukraine during 2006/2007 with 331 individuals who had started-up or owned/managed an enterprise.
Findings
Revealing that the rationales for entrepreneurs operating in the informal economy markedly differ according to whether they are wholly or partially informal entrepreneurs operating temporarily or permanently in the informal economy, the result is a call for a move beyond a “one-size-fits-all” policy approach and towards a variegated public policy approach whereby policy measures are tailored to tackling the different types of informal entrepreneurship, each of which operate informally for varying reasons.
Research limitations/implications
No evidence yet exists of whether the rationales for engaging in each type of informal entrepreneurship, and the consequent policy measures that need to be used to formalise each type, are more widely valid. Further research to evaluate this is required.
Originality/value
This is the first paper to start to move beyond a “one size fits all” policy approach when considering how to facilitate the formalisation of entrepreneurs in the informal economy.
Keywords
Citation
Williams, C. and J. Nadin, S. (2014), "Facilitating the formalisation of entrepreneurs in the informal economy: Towards a variegated policy approach", Journal of Entrepreneurship and Public Policy, Vol. 3 No. 1, pp. 33-48. https://doi.org/10.1108/JEPP-05-2012-0027
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited