Two-sided Institutional Impacts and Informal Entrepreneurship Motivation in Nigeria

Abstract

Institutions are developed to direct individuals’ behaviours in ways that lead to their fulfilment. However, either by deliberate human design or other factors, institutions can also either impact positively or negatively on individuals with entrepreneurial ambition. This characterisation is typical of Nigeria’s institutions because of their often two-sided impacts on the individual. This article uses interview data from a qualitative study to demonstrate how ambiguity, as reflected in the often conflicting effects of institutional arrangements in Nigeria influence the decision to engage in informal entrepreneurship. In particular, the finding that both the enforcement and the absence of enforcement of formal laws potentially cause informality, presents a challenge that seriously implicate policy formulation and point to the need for more targeted research.