An assessment of informal SMEs’ potential in an African economy – theoretical and conceptual framework

Abstract

Informal Small and Medium Enterprises (SMEs) play a key role in their respective economies over the world particularly in the African continent. This paper reviews various theories on SMEs towards understanding the potential of the informal sector in the context of African countries. The paper uses a theoretical approach for the purpose of assessing the challenges that have affected the development of the informal SMEs sector over the years in both the developing and developed world. Economically developing countries in Africa pose unique challenges to informal SMEs development compared to the developed countries. The paper reviews the theories that define the rise to informality in Africa by identifying the key determinants for the emergence of informal SMEs. A conceptual framework for assessing informal SME’s potential for Africa is developed. The conceptual framework is based on the Fishbone diagram developed by Kaoru Ishikawa (1986). This paper discusses the intricacies of the applicability of the proposed conceptual framework to assess the potential of the informal SMEs in Africa and the way forward for the formalization debate.

Impact of Digital Marketing Capabilities on Market Performance of Small to Medium Enterprise Agro-Processors in Harare, Zimbabwe

“…In the Zimbabwean SME agro-processors context, research on the linkage between digital marketing capabilities and market performance is scarce. Previous research has dominantly focussed on agro-processors challenges (Mhazo et al, 2012), SME policy issues (Chigwenya & Mudzengerere, 2013), informal sector (Matsongoni & Mutambara, 2018), and government policies on SMEs (Bomani, 2016). Linking SME agro-processors' digital marketing capabilities to performance is important in the Zimbabwean context and other developing countries with similar conditions.…”

Application of Management Accounting in Informal Division Enterprises of Janakpurdham Submetropolis

“…They must be strategic. Research has proved that the majority of informal businesses fail within a few years after start-up due to not being strategic [25]. This research has concluded that informal entrepreneurs operated businesses above 5 years have learned know how to sustain.…”

Exploring digital marketing resources, capabilities and market performance of small to medium agro-processors. A conceptual model

“…The study contributes to digital marketing literature by applying existing knowledge to a digital and developing country context. This is crucial to the Zimbabwean context because existing research (Matsongoni & Mutambara, 2018;Mapakame, 2017;Bomani, 2016;FinScope, 2012;Mhazo, et al, 2012;Zindiye, et al, 2012) mainly focus on SME financial issues, accounting practices, government policy, general challenges and constraints.…”