You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy
Academy of Management Review, Vol. 34, No. 3, pp. 492-510, 2009
44 Pages Posted: 28 Aug 2009
Date Written: August 27, 2009
The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multi-level perspective integrating entrepreneurship theory (micro-level) with institutional (macro-level) and collective identity (meso-level) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence transition to the formal economy.
Keywords: Entrepreneurship, formal economy, informal economy, shadow economy, renegade economy
Suggested Citation: Suggested Citation