IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v51y2018i1d10.1007_s11187-017-9916-0.html
   My bibliography  Save this article

Entrepreneurship: structural transformation, skills and constraints

Author

Listed:
  • Ralitza Dimova

    (University of Manchester)

  • Kevwe Pela

    (University of Manchester)

Abstract

This paper revisits the place of the entrepreneur in the process of structural transformation and economic development, using representative data from Nigeria. The focus is on the allocation of self-employed individuals with different skill levels across sectors—primary, secondary and tertiary—and on its link to selectivity corrected returns to skills in these sectors. While self-employment is dominated by service sector activities and these activities attract more skilled individuals than do the manufacturing and primary sectors, the level of skills across all three entrepreneurial sectors is lower than that of both salaried workers and individuals who do not work. Returns to skills among self-employed individuals in the manufacturing sector are particularly low. This is at least partially explained by constraints to productive entrepreneurial activities and is inconsistent with the idea of smooth structural transformation towards innovative entrepreneurship. We discuss some conceptual and policy implications.

Suggested Citation

  • Ralitza Dimova & Kevwe Pela, 2018. "Entrepreneurship: structural transformation, skills and constraints," Small Business Economics, Springer, vol. 51(1), pages 203-220, June.
    • Handle: RePEc:kap:sbusec:v:51:y:2018:i:1:d:10.1007_s11187-017-9916-0
    DOI: 10.1007/s11187-017-9916-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-017-9916-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-017-9916-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    2. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
    3. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    4. repec:dau:papers:123456789/10597 is not listed on IDEAS
    5. Dani Rodrik, 2008. "Normalizing Industrial Policy," World Bank Publications - Books, The World Bank Group, number 28009.
    6. World Bank, 2014. "Nigeria Economic Report, No. 2, July 2014," World Bank Publications - Reports 19980, The World Bank Group.
    7. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    8. Ralitza Dimova & Christophe J. Nordman & François Roubaud, 2010. "Allocation of Labor in Urban West Africa: Insights from the Pattern of Labor Supply and Skill Premiums," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 74-92, February.
    9. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995, September.
    10. Mary M. Shirley, 2008. "Institutions and Development," Books, Edward Elgar Publishing, number 12524.
    11. Mary M. Shirley, 2008. "Institutions and Development," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 24, pages 611-638, Springer.
    12. Dani Rodrik & Mark Rosenzweig (ed.), 2010. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 5, number 6.
    13. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
    14. William Kerr & Ramana Nanda, 2009. "Financing Constraints and Entrepreneurship," NBER Working Papers 15498, National Bureau of Economic Research, Inc.
    15. Grimm, Michael & Hoeven, Rolph van der & Lay, Jann, 2011. "Unlocking potential : tackling economic, institutional and social constraints of informal entrepreneurship in Sub-Saharan Africa : main findings and policy conclusions," Social Protection Discussion Papers and Notes 77925, The World Bank.
    16. Mazumdar, Dipak, 1983. "Segmented Labor Markets in LDCs," American Economic Review, American Economic Association, vol. 73(2), pages 254-259, May.
    17. Karlan, Dean & Morduch, Jonathan, 2010. "Access to Finance," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4703-4784, Elsevier.
    18. Shahid Yusuf, 2003. "Innovative East Asia : The Future of Growth," World Bank Publications - Books, The World Bank Group, number 15158.
    19. Markus Poschke, 2013. "‘Entrepreneurs out of necessity’: a snapshot," Applied Economics Letters, Taylor & Francis Journals, vol. 20(7), pages 658-663, May.
    20. Marcus H Böhme & Rainer Thiele, 2014. "Informal–Formal Linkages and Informal Enterprise Performance in Urban West Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 473-489, September.
    21. Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," The World Bank Economic Review, World Bank, vol. 13(2), pages 275-302, May.
    22. World Bank, 2008. "Finance for All? Policies and Pitfalls in Expanding Access," World Bank Publications - Books, The World Bank Group, number 6905.
    23. Martha Chen, 2014. "Informal Employment and Development: Patterns of Inclusion and Exclusion," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 397-418, September.
    24. repec:hal:pseose:hal-01060265 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ali Sher & Saman Mazhar & Azhar Abbas & Muhammad Amjed Iqbal & Xiangmei Li, 2019. "Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food Distribution in the Context of the CPEC: A Case of Pakistan," Sustainability, MDPI, vol. 11(7), pages 1-22, March.
    2. Pindado, Emilio & Sánchez, Mercedes & García Martínez, Marian, 2023. "Entrepreneurial innovativeness: When too little or too much agglomeration hurts," Research Policy, Elsevier, vol. 52(1).
    3. Deusdedit Rwehumbiza & Marin A. Marinov, 0. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    4. Deusdedit Rwehumbiza & Marin A. Marinov, 2020. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 667-689, June.
    5. Debmalya Mukherjee & Saumyaranjan Sahoo & Satish Kumar, 2023. "Two Decades of International Business and International Management Scholarship on Africa: A Review and Future Directions," Management International Review, Springer, vol. 63(6), pages 863-909, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olabimtan Adebowale & David Lawson, 2018. "Does access to formal finance matter for stimulating entrepreneurship in developing countries? Evidence from non-farm entrepreneurial activities in Nigeria," Global Development Institute Working Paper Series 262018, GDI, The University of Manchester.
    2. Falco, Paolo & Maloney, William F. & Rijkers, Bob & Sarrias, Mauricio, 2015. "Heterogeneity in subjective wellbeing: An application to occupational allocation in Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 137-153.
    3. Floridi, A. & Wagner, N. & Cameron, J., 2016. "A study of Egyptian and Palestine trans-formal firms – A neglected category operating in the borderland between formality and informality," ISS Working Papers - General Series 619, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. Dimova, Ralitza & Nordman, Christophe Jalil & Roubaud, François, 2008. "Allocation of Labour in Urban West Africa: Implication for Development Policies," IZA Discussion Papers 3558, Institute of Labor Economics (IZA).
    5. Federico S. Mandelman & Gabriel Montes-Rojas, 2007. "Microentrepreneurship and the business cycle: is self-employment a desired outcome?," FRB Atlanta Working Paper 2007-15, Federal Reserve Bank of Atlanta.
    6. Mandelman, Federico S. & Montes-Rojas, Gabriel V., 2009. "Is Self-employment and Micro-entrepreneurship a Desired Outcome?," World Development, Elsevier, vol. 37(12), pages 1914-1925, December.
    7. Matteo Bobba & Luca Flabbi & Santiago Levy, 2022. "Labor Market Search, Informality, And Schooling Investments," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 211-259, February.
    8. Thi Hong Hanh Pham, 2022. "Shadow Economy and Poverty: What Causes What?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 861-891, December.
    9. Tomasz Legiedz, 2020. "Economic policy for development and the new institutional economics," Catallaxy, Institute of Economic Research, vol. 5(2), pages 61-73, December.
    10. Jaime Lara Lara & Leobardo Pedro Plata Pérez, 2021. "Satisfacción con la vida y condiciones de empleo en México," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 55(2), pages 109-126, Julio-Dic.
    11. Danquah Michael & Schotte Simone & Sen Kunal, 2021. "Informal work in sub-Saharan Africa: Dead end or stepping-stone?," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-44, January.
    12. Roxana Gutierrez-Romero & Luciana Méndez Errico, 2015. "The Long-Term Impact of Inequality on Entrepreneurship and Job Creation," Working Papers wpdea1501, Department of Applied Economics at Universitat Autonoma of Barcelona.
    13. Ralitza Dimova & Christophe J. Nordman & François Roubaud, 2010. "Allocation of Labor in Urban West Africa: Insights from the Pattern of Labor Supply and Skill Premiums," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 74-92, February.
    14. Radchenko, Natalia, 2014. "Heterogeneity in Informal Salaried Employment: Evidence from the Egyptian Labor Market Survey," World Development, Elsevier, vol. 62(C), pages 169-188.
    15. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    16. Galiani, Sebastian & Gertler, Paul & Bando, Rosangela, 2016. "Non-contributory pensions," Labour Economics, Elsevier, vol. 38(C), pages 47-58.
    17. Flórez, Luz A., 2017. "Informal sector under saving: A positive analysis of labour market policies," Labour Economics, Elsevier, vol. 44(C), pages 13-26.
    18. Prina, Silvia, 2015. "Banking the poor via savings accounts: Evidence from a field experiment," Journal of Development Economics, Elsevier, vol. 115(C), pages 16-31.
    19. World Bank, 2015. "Republic of Yemen," World Bank Publications - Reports 23660, The World Bank Group.
    20. Mathan Satchi & Jonathan Temple, 2006. "Growth and labour markets in developing countries," Bristol Economics Discussion Papers 06/581, School of Economics, University of Bristol, UK.

    More about this item

    Keywords

    Entrepreneurship; Structural transformation; Economic development; Nigeria;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N80 - Economic History - - Micro-Business History - - - General, International, or Comparative
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:51:y:2018:i:1:d:10.1007_s11187-017-9916-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.