Motivations for Engaging in Entrepreneurial Activity in the Informal Sector in Sub Saharan Africa

In this paper we investigate entrepreneurship in the informal sector in Sub-Saharan Africa. Using data from the World Bank we examine the motivational antecedents for why individuals become self-employed within the informal sector. We build on research focusing primarily on data from the formal sector to generate a number of testable hypotheses regarding individual-level predictors of opportunity status. We test our hypotheses using multiple probit model regression analyses. Our results indicate that opportunity-driven entrepreneurs comprise a large portion ofinformal sector in Sub-Saharan Africa and suggest that there are important differences between the antecedents of entrepreneurship in the informal sector in the region and the findings of research focused on the formal sectors of developed countries. Despite a number of limitations, our paper sheds important light on an interesting and comparatively understudied topic but leaves much room for future development