An Examination of Factors Motivating Informal Entrepreneurship in Ibadan, South West Nigeria

Abstract

The study examined factors motivating informal entrepreneurship in developing countries with a view to determine how the peculiarities of the context influence the choice of form to operate formally or informally by owners of businesses. Primary data were collected through structured questionnaire administered on 150 entrepreneurs of Entrepreneurship Development Centre (EDC) extraction with operational base in Ibadan metropolis. Data were analysed using the inferential statistical tools of Multiple Regression for determining the impact of identified variables and to measure association between variables. Findings revealed that informal entrepreneurship conforms to the traditional culture, norms and values held by Nigerians and it also indicated that formal rules/principles are generally perceived as mere imposition. The study concludes that there is the need for policy makers to constantly design home-grown entrepreneurial processes, easier and friendly legal framework that take into cognizance the local peculiarities so as to promote entrepreneurship in formal economy.

Keywords: Entrepreneurship; Informal entrepreneurship; Opportunity-driven entrepreneurship;   Necessity-driven entrepreneurship; Formal Economy