Kwame Adom

Beyond the Marginalization Thesis: An Examination of the Motivations of Informal Entrepreneurs in Sub-Saharan Africa: Insights from Ghana

For years, informal entrepreneurs were largely classified as ‘marginalized’ and were perceived to be conducting marginalized ventures for survival. However, this perception gradually changed between the middle of the twentieth century and the start of the new millennium. In analysing the motivations of informal entrepreneurs from Ghana, based on face-to-face interviews with 150 respondents, the key findings were that the motivations of the entrepreneurs transcended the marginalization thesis and that informal entrepreneurs were often motivated not by necessity or opportunity, but rather by an amalgamation of the two. Although women constitute the majority of the necessity-driven informal entrepreneurs, in time some of them become opportunity-driven entrepreneurs. The implication is that there is a need for a shift from necessity–opportunity dualism to a unified approach, which depicts the motivations of informal entrepreneurs in more detail, and for broader research in other economic landscapes.

An evaluation of human capital theory and female entrepreneurship in sub-Sahara Africa: Some evidence from Ghana

Purpose The study aims to evaluate critically how the elements of human capital theory such as level of education, area of education, training and prior work experience influence female entrepreneurship in sub-Saharan Africa, with focus on Ghana. Though it is very critical that the elements of human capital are known and assessed, there is currently very little known about the elements of human capital as pertains to female entrepreneurship in Ghana. This situation has called for a study such as this one. Design/methodology/approach A phenomenological paradigm was adopted for the study. This includes in-depth interview, documentation and observation. Unlike narrative research that reports on lived experiences of an individual, phenomenological study focuses on describing the lived experiences of several individuals. It is mainly a descriptive account of shared experiences of those individuals located near universal lived experience(s). Findings Reporting data from a 2014 qualitative in-depth interview of 25 women entrepreneurs in Accra who work in service delivery, manufacturing and trading, it was revealed that level of education, business training and knowledge gained during the course of their work were crucial factors for their success. As a consequence, this study calls for effective policies that will encourage education and training of women entrepreneurs, especially those with low levels of education, on a sustainable basis. Research limitations/implications The study focused on some of the elements of human capital and women’s entrepreneurship in Ghana. However, there exist other issues that are critical to the development of female entrepreneurship in the sub-Saharan region that can be explored to provide more insight on this subject or different context. Practical implications The human capital dimensions which were evaluated for this study included level of education, area of education, business training and experience gained from prior employment. The outcome is that these elements are crucial for the success of women entrepreneurs in Ghana, but there is the need for wider research in other global regions on women entrepreneurs and human capital factors and whether similar variations prevail. Originality/value Evidence from the literature reveals that little is known until now to evaluate the elements of the human capital of female entrepreneurs in Ghana, and this study seeks to bridge this gap. Results are examined comparing what is pertaining in other international communities, thus avoiding a merely national viewpoint.

Formalisation of Entrepreneurship in the Informal Economy in Sub-Saharan Africa and the Role of Formal Institutions: An Analysis of Ghana’s Experience

Informal entrepreneurship has been for a long time a major lifeline for many living in rural and urban economies in developing countries especially in sub-Saharan Africa and more particularly Ghana. Formalising the informal economy has become prominent within development circles but there has been no clear policy direction from the formal institutions in terms of their role in formalising informal entrepreneurship. This chapter seeks to evaluate critically the role of formal institutions in formalising entrepreneurship in the informal economy in Ghana. Formal institutions are seen as strategic leaders in this endeavour but they are also perceived as enemies of formalisation since they profit from the current bureaucratic impediments as informal entrepreneurs try to formalise their operations.

Tackling informal entrepreneurship in Ghana: a critical analysis of the dualist/modernist policy approach, some evidence from Accra

The principal aim of this study is to provide a critical analytical overview of the nature and extent of informal entrepreneurship in Ghana, and to evaluate how it is being tackled through government policies under the spectacle of the dualist/modernist. Despite the widespread recognition of its magnitude and even growth, the informal economy in Ghana has not received the attention it deserves in the employment policies of the government until now. Little is known until now to evaluate how informal entrepreneurship could be tackled to make it more relevant to the economy. This study seeks to bridge this gap. Reporting data from a 2014 qualitative in-depth interview of government officials and other policy think-tanks, the key finding is that government policy towards tackling informal entrepreneurship has been at best ad hoc with no clear-cut policy to deal with informal entrepreneurship but somewhat adopting deterrent approach (mainly force eviction - aggressive, combative and impulsive). As a consequence, this paper calls for humane approach that will make informal entrepreneurship significant part of the overall economy such as deregulation, facilitating formalisation of informal entrepreneurship amongst others.