The Dynamics of Entrepreneurship in the Informal Economy

Abstract

This study reviews the primary considerations in answering the controversial questions about the Informal Sector. The informal sector is a significant part of the Nigerian economy and provides goods and services to millions of Nigerians. It is also a vital source of employment, especially for those who cannot secure work in the formal sector.  According to the International Labour Organization (ILO), the common characteristics of an informal enterprise include ease of entry, reliance on indigenous resources, family ownership, small-scaled operations, labor-intensive, adaptive technology, and unregulated and competitive markets. The objective of this study is to examine the characteristics of the informal entrepreneurs, reasons for operating informally, and entrepreneurial strengths of the informal economy.