GROWING AN INFORMAL DIGITAL MICRO-ENTERPRISE: THE ROLE OF INDIVIDUAL ENTREPRENEURIAL ORIENTATION AND SOCIAL CAPITAL

Abstract

This research examines the effects of individual entrepreneurial orientation (IEO) on informal sector digital micro-enterprise growth in developing countries and the moderating role of networking social capital. The majority of EO research on company growth has focused on registered traditional SMEs and larger enterprises in higher-income markets. A total of 248 informal online micro-enterprises from Senegal were studied. The findings show that IEO has distinct effects on informal digital microbusiness development. Individual risk-taking boosts digital micro-enterprise growth, whereas inventive behaviour hinders it. Proactiveness does not seem to increase growth. Different social capital’s moderating effects on IEO dimensions and online micro-enterprise growth are also found. This study is one of the first to examine individual entrepreneurial behaviour that may lead to the growth of informal digital micro-businesses and the differentiated role of SC. It has also expanded business contextualisation to better comprehend IEO in informal online micro-enterprises outside developed countries.