{"title":"THE CONVERSION FROM INFORMALITY TO A FORMAL ENTITY: LINKS TO THE NATURE OF THE OWNER-MANAGER","authors":"El hassania Rahou, A. Taqi","doi":"10.1142/s1084946721500278","DOIUrl":null,"url":null,"abstract":"Recognizing the heterogeneity of informal microentrepreneurs, this paper assesses the determinants of their willingness to enter the formal sector. Based on human capital theory and social capital theory, we test the hypothesis that firm decision-making regarding formalization is a function of the nature of the informal microentrepreneur. Using data collected from 500 informal microentrepreneurs in Morocco, and employing a logistic regression model, we find that higher education level, motivation by business opportunity, entrepreneurship training, work experience, gender and the importance of social networks have an impact on the desire to formalize. The paper concludes by discussing the theoretical and policy implications.","PeriodicalId":46653,"journal":{"name":"Journal of Developmental Entrepreneurship","volume":" ","pages":""},"PeriodicalIF":1.3000,"publicationDate":"2021-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Developmental Entrepreneurship","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1142/s1084946721500278","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 1
Abstract
Recognizing the heterogeneity of informal microentrepreneurs, this paper assesses the determinants of their willingness to enter the formal sector. Based on human capital theory and social capital theory, we test the hypothesis that firm decision-making regarding formalization is a function of the nature of the informal microentrepreneur. Using data collected from 500 informal microentrepreneurs in Morocco, and employing a logistic regression model, we find that higher education level, motivation by business opportunity, entrepreneurship training, work experience, gender and the importance of social networks have an impact on the desire to formalize. The paper concludes by discussing the theoretical and policy implications.
期刊介绍：
The Journal of Developmental Entrepreneurship (JDE) provides a forum for the dissemination of descriptive, empirical, and theoretical research that focuses on issues concerning microenterprise and small business development, especially under conditions of adversity. The intended audiences for JDE are scholars who study issues of developmental entrepreneurship and professionals involved in governmental and non-governmental efforts to facilitate entrepreneurship in economic and community development programs around the world. Articles will cover a broad range of topics, including: -Entrepreneurship and self-employment in developing contexts -Challenges and opportunities unique to minority and women entrepreneurs -Microenterprise funds and private-sector small business lending practices -Legislation, regulation, and tax policy that impact entrepreneurship and economic development -Processes that facilitate growth and development within emerging enterprises -Networks within and among entrepreneurial ventures -Marketing patterns and approaches in venture growth and development -International developmental entrepreneurship programs -Entrepreneurship in the informal economic sector -Education and training for aspiring entrepreneurs -Industry practices that adversely affect microenterprise development -Economic and social impacts of microenterprise activity
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