Evaluating Women Entrepreneurs in the Informal Sector: Some Evidence From India

Abstract

Studies on women entrepreneurs in the informal economy no longer view them merely as a residue from some pre-modern mode of production that is disappearing. Instead, they are either read through a structuralist lens as marginalized populations engaged in low quality work conducted under poor conditions for low pay out of necessity in the absence of alternative means of livelihood, or through a neo-liberal lens as engaged in relatively higher quality endeavours more as a rational choice. The aim of this paper is to evaluate critically these contrasting explanations. To do this, the results of face-toface interviews with 323 women entrepreneurs operating in the Indian informal economy are analyzed. The finding is that although the structuralist representation is largely appropriate for women engaged in informal waged work, it is not as valid for women informal entrepreneurs working on a selfemployed basis where incomes are higher, they receive more credit from informal institutions, union membership is higher, and such work is more likely to be a rational choice. The outcome is a call to recognize the diversity of women's experiences in the informal sector and that not all informal entrepreneurship by women in developing nations is a low-paid, necessity-oriented endeavour carried out as a last resort.

Facilitating the formalisation of entrepreneurs in the informal economy

“…This emergent literature intimates that a large proportion of entrepreneurs conduct some or all of their transactions in the informal economy (Antonopoulos and Mitra, 2009;Llanes and Barbour, 2007;Rehn and Taalas, 2004;Small Business Council, 2004;Williams, 2006Williams, , 2009Williams and Gurtoo, 2011). Until now, however, few studies have estimated the proportion of entrepreneurs operating informally.…”

Tackling enterprise in the informal economy: an introductory overview

“…This scholarship has analysed not only its magnitude, including the prevalence of enterprise in the informal economy (Autio and Fu, 2015; and the determinants of its variable prevalence (Dau and Cuervo-Cazurra, 2014;Siqueira et al, 2014;Thai and Turkina, 2014), but also its characteristics, including who participates (Thai and Turkina, 2014;Williams, 2007;Williams and Martinez-Perez, 2014;Williams and Nadin, 2010b;Round, 2007, 2008;Williams and Youssef, 2014) and their motivations for doing so, such as whether they are necessity-and/or opportunity-driven (Adom, 2014;Adom and Williams, 2012;Maloney, 2004;Perry et al, 2007;Williams and Gurtoo, 2011). Until now however, and despite the growing understanding of the magnitude, characteristics and rationales underpinning informal entrepreneurship, relatively little attention has been paid to tackling enterprise in the informal economy.…”

Tackling Entrepreneurship in the Informal Sector: An Overview of the Policy Options, Approaches and Measures

“…This literature has analyzed not only its magnitude, including the prevalence of informal entrepreneurship (Autio and Fu, 2014; and the determinants of its variable prevalence (Dau and Cuervo-Cazurra, 2014;Siqueira et al, 2014;Thai and Turkina, 2014), but also its nature, including who participates (Thai and Turkina, 2014;Williams, 2007;Williams and Martinez-Perez, 2014;Williams and Nadin, 2010b;Round, 2007, 2008;Williams and Youssef, 2013) and their motives, such as whether they are necessity-and/or opportunity-driven (Adom, 2014;Adom and Williams, 2012;Maloney, 2004;Perry et al, 2007;Williams and Gurtoo, 2011;Williams et al, 2009). Until now however, and despite the growing understanding of the magnitude, characteristics and rationales underpinning informal entrepreneurship, little attention has been paid to what is to be done about entrepreneurship in the informal economy.…”