Future Business Journal (Feb 2024)
Striving for a life out of shadows: informal entrepreneurial dynamics in time of crisis
Abstract
Abstract Motivated by the unique opportunity that a crisis period provides for capturing and reassessing specific entrepreneurial behaviors, this paper takes on the debate about the entrepreneurial attributes of informal ventures “IVent” and their endeavor to formalize. In doing so, Cronbach’s alpha rationales and contingency analysis are applied to quantitative data from street vendors of the main markets of Cameroon to investigate informal entrepreneurial behavioral dynamics and their impact on a hypothetical willingness for change during the COVID-19 pandemic. It was uncovered that IVent have activated entrepreneurial attributes of resilience, intention and orientation. Also, specific composites or variables of entrepreneurial orientation and resilience have been found more supportive of IVent’s endeavor to formalize than others. The novelties in that regard are: (1) While most of the variables related to the composite of innovativeness reinforce the desire to formalize, the variable of “routine” plays a hindering role. (2) The composite of proactiveness is not significantly related to the willingness to formalize. (3) The composite of risk-taking has proven significant to IVent’s transformation aims. And (4) contrary to all other variables of the attribute of resilience and self-efficacy, the variable of behavior control appears to hamper the aim to move out of the shadows. It is argued that facilitating Ivent’s dynamics and aspiration to formalize necessitates policymakers to advance policies that support the development of the uncovered determining composites. Furthermore, academia should undertake an extensive investigation into the role that the captured non-significant variables, attributes, and composites may play in fostering IVent's shadowed business lifecycle. Graphical abstract
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