The Contextual Dimensions of Informal Economy and Entrepreneurship

This study investigates the global dynamics of the informal economy and the need for coexistence between it and the formal economy. Developing and developed countries are beset with various social and economic problems, such as unemployment, poverty levels, informal jobs, and global issues. Informal Entrepreneurship remains a focal means to reduce unemployment and create jobs in many economies. The informal economy and entrepreneurship dynamics were investigated using institutional theory and by drawing on a qualitative approach and secondary data from the International Labour Organization and Women in Informal Employment: Globalizing and Organizing datasets. The findings depict the need to ensure that the informal and formal economies coexist well rather than merge due to their interwoven nature. This calls for adopting a system and holistic perspective for studying facets of informal-formal entrepreneurship in different contexts. Informal economy and informal entrepreneurship are essential for reducing global unemployment and developing innovation in the value chain in their contexts. Globally, the informal economy and informal entrepreneurship provide safety nets, a source of livelihood, and pay informal levies that contribute to economic growth and development. The study shows how informal entrepreneurship contributes to the business environment. The contextual evidence from the literature justifies the necessity for informal entrepreneurship and the economy due to the interplay of poor market conditions, institutional voids, entrepreneurial behavior, and local business dynamics