Beyond the Marginalization Thesis: An Examination of the Motivations of Informal Entrepreneurs in Sub-Saharan Africa

Abstract

For years, informal entrepreneurs were largely classified as ‘marginalized’ and were perceived to be conducting marginalized ventures for survival. However, this perception gradually changed between the middle of the twentieth century and the start of the new millennium. In analysing the motivations of informal entrepreneurs from Ghana, based on face-to-face interviews with 150 respondents, the key findings were that the motivations of the entrepreneurs transcended the marginalization thesis and that informal entrepreneurs were often motivated not by necessity or opportunity, but rather by an amalgamation of the two. Although women constitute the majority of the necessity-driven informal entrepreneurs, in time some of them become opportunity-driven entrepreneurs. The implication is that there is a need for a shift from necessity–opportunity dualism to a unified approach, which depicts the motivations of informal entrepreneurs in more detail, and for broader research in other economic landscapes.