Investigating the impact of the dynamics of entrepreneurial intentions on ventures’ formalization

Abstract

Purpose To overcome economic hardship and survival, informal entrepreneurs must continually activate specific resilience capabilities and reassess their entrepreneurial intentions (EI). Accordingly, they may develop transformational characteristics to design a model supporting intersectorial business growth. This study aims to examine the EI ecosystem of change resulting from the above endeavors and proposes an entrepreneurial intention transformation model (EITM). Design/methodology/approach Using the EI questionnaire developed by Liñán and Chen, data was collected from street vendors in the main markets of the Cameroonian capital (N = 307) to capture the determinants of behavior reflecting the propensity to activate entrepreneurial events within informal ventures. Findings It was uncovered that perceived collective support, resilience, orientation capability and inferred policies influence the dynamics of EI in the informal sector. Additionally, while revisiting current entrepreneurial lifecycle models, the study distinguished between the entrepreneurial events of “renegare” and formalization. Furthermore, the construction of an informal entrepreneurial lifecycle model confirms the need to acknowledge the formalization and “deformalization” processes as integrative parts of an intersectorial entrepreneurial lifecycle model. Originality/value This study extends existing research by proposing an intersectorial entrepreneurial lifecycle to recognize the dynamics of EI on ventures’ formalization. The EITM encompasses the EI dynamic process model and the proposed entrepreneurial lifecycle.