Narrow Results

Mirroring the representation of informal workers in a third world context as displaying entrepreneurial qualities, recent years have witnessed the emergence of a similar view of the informal sector in western nations as a hidden enterprise culture. Until now, however, few attempts have been made to analyze the nature and motives of informal entrepreneurs in western economies. Instead, it has been widely assumed that those engaged in entrepreneurship in the informal sector are those marginalized from the formal economy and driven out of necessity into this endeavor as a last resort. The aim of this paper is to evaluate critically this "marginalization thesis". Reporting the findings of face-to-face structured interviews with 130 informal entrepreneurs in England, the conventional representation of these entrepreneurs as necessity-driven, as well as an emergent depiction of them as opportunity-driven, is transcended. Instead, a richer and more textured understanding of informal entrepreneurship is developed that replaces such either/or thinking by a both/and approach that depicts how the majority are concurrently both necessity- and opportunity-driven. The paper then concludes by exploring the public policy implications of this rereading of the nature of informal entrepreneurship in western economies.

There are many underlying reasons justifying the importance of researching the informal economy from the academic and the practical perspectives. Evidence suggests that commercial activities generated by the informal economy could constitute an average of thirty percent of all commercial activities across the world with informal entrepreneurship consuming a big chunk of such activities. This research will focus on exploring the antecedents of informal entrepreneurship in Egypt as a developing country that is still undergoing a complicated political and economic phase that started in the financial crisis of 2008 passing by the revolution in 2011 and the subsequent corrective revolution in 2013.