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Unlocking potential : tackling economic, institutional and social constraints of informal entrepreneurship in Sub-Saharan Africa : main findings and policy conclusions

Author

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  • Grimm, Michael
  • Hoeven, Rolph van der
  • Lay, Jann

Abstract

In the past two decades, research on the informal sector has emphasized the heterogeneity of this part of the economy, example in terms of entry costs, firm size, and access to credit, forward- and backward linkages as well as human and physical capital endowments. Yet, not much research has investigated the causes of this heterogeneity and the implied inefficiencies. This is true in particular for Sub-Saharan Africa, where informality dominates urban labor markets. Understanding these causes and the implied inefficiencies is however necessary to design policy interventions that are able to remove the most binding constraints for informal entrepreneurs. This note summarizes the main findings and policy conclusions from a research project that analyzes the quantitative importance of various constraints to informal enterprises in West Africa and Madagascar.

Suggested Citation

  • 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.
    • Handle: RePEc:wbk:hdnspu:77925
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    Citations

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    Cited by:

    1. 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.
    2. Ligita Gasparėnienė & Rita Remeikienė & Colin C. Williams, 2022. "Unemployment and the Informal Economy," SpringerBriefs in Economics, Springer, number 978-3-030-96687-4, February.
    3. Ligita Gasparėnienė & Rita Remeikienė & Colin C. Williams, 2022. "Theorizing the Informal Economy," SpringerBriefs in Economics, in: Unemployment and the Informal Economy, chapter 0, pages 7-60, Springer.
    4. repec:dau:papers:123456789/13410 is not listed on IDEAS
    5. Dasgupta, Nandini & Lloyd-Jones, Tony, 2018. "Heterogeneity and vulnerability in the urban informal economy: Reworking the problem in the current context. The case of uganda," World Development Perspectives, Elsevier, vol. 10, pages 64-72.
    6. 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.
    7. Fox, Louise & Sohnesen , Thomas Pave, 2012. "Household enterprises in Sub-Saharan Africa : why they matter for growth, jobs, and livelihoods," Policy Research Working Paper Series 6184, The World Bank.
    8. Ralitza Dimova & Kevwe Pela, 2018. "Entrepreneurship: structural transformation, skills and constraints," Small Business Economics, Springer, vol. 51(1), pages 203-220, June.
    9. Philippe De Vreyer & François Roubaud, 2013. "Urban Labor Markets in Sub-Saharan Africa," World Bank Publications - Books, The World Bank Group, number 15808.
    10. Negrete Garcia, Ana Karen, 2018. "Constrained Potential: A Characterisation of Mexican Microenterprises," GIGA Working Papers 309, GIGA German Institute of Global and Area Studies.
    11. Jean-Philippe Berrou & Damien Girollet, 2019. "A la recherche des « gazelles » du secteur informel urbain africain. Entreprises et entrepreneurs à fort potentiel dans leur environnement socioéconomique et numérique," Working Papers hal-02507441, HAL.

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