Theorizing Entrepreneurship in the Informal Sector in Urban Brazil: A Product of Exit or Exclusion?
Journal of Entrepreneurship, Vol. 24, No. 2, pp. 148-168, 2015
27 Pages Posted: 10 Jan 2017
Date Written: February 10, 2015
This article evaluates critically the competing explanations for informal sector entrepreneurship that read such endeavours to result from either ‘exclusion’ from state benefits and the circuits of the modern economy or the voluntary ‘exit’ of workers from formal institutions. Reporting evidence from a 2003 survey in urban Brazil, it is revealed that similar proportions of informal sector entrepreneurs explain their participation to result from their involuntary exclusion and voluntary exit from the formal economy. The outcome is a call to shift from an either/or to a both/and approach when explaining informal sector entrepreneurship and for wider research on the relative weightings given to exit and exclusion in different contexts so as to develop a socio-spatially contingent explanation for participation in informal sector entrepreneurship across the globe.
Keywords: Entrepreneurship, Micro-Enterprise, Small Businesses, Enterprise Culture, Informal Sector, Underground Economy, Shadow Economy, Brazil
JEL Classification: H26, J46, J48, K34, K42, O17, P37
Suggested Citation: Suggested Citation