The fuzzy boundaries and intertwined nature of informal and formal sectors in Nigeria has varied impact on the economy. Global Competitiveness of Informal Economy Organizations. So governments find it difficult bringing taxpayers to the tax net. Locations of small and medium enterprises (SMEs) play a crucial role in It will explain the roles of the informal sector in Nigeria and this will make the government pay attention to using the informal sector as a tool for solving unemployment which is a problem confronting the country. Next, an estimation of the contribution of this sector to employment generation, income generation and tax revenue was undertaken with data obtained from World Development Indicators report of 2019 using Ordinary Least Square (OLS) estimation technique. foreign investments, knowledge for policy makers and to generate further comparative Informal–Formal Linkages and Informal Enterprise Performance in Urban West Africa. In this regard, this chapter seeks to contribute to the limited extant literature on small business social responsibility in developing economies – specifically Nigeria – and how the exposition of such practices could contribute immensely to the sustainable development of the country. This puts Nigeria in a class of its own as the United Nations assessments suggest that for developing economies the average percentage composition of GDP by informal sector ought to be 41% and for countries in transition; 38%. Number of times cited according to CrossRef: An Appraisal of Production Subcontracting Toward Small and Medium Scale Enterprises Development in the Nigeria Industrial Sector: A Review Approach. However, studies on social responsibility in businesses have largely neglected discourse on socially responsible practices in the informal sector, especially in Nigeria. From the result it was found that the informal sector by its various components contributes positively and significantly to employment generation and income generation but has not significantly contributed to tax revenue. of people who look to the informal sector for economic survival. Coagglomeration of formal and informal industry: evidence from India. of legal and illegal economic activities in, The definition of informal economy by the, rapidly changing terrain, and referred to, units that are –in law or in practice – not, and service’. This is as the Federal Government has been called upon to create enabling environment for private investors to grow the economy. This paper provides a quantitative analysis of the nature of the informal sector's linkages with the formal sector in Nigeria. The Car Wash enterprise is dotted in every nook and crannies of the urban areas. The main objective of this research is to examine the impact of unemployment as it causes psychological trauma, frustration and aggression thereby resulting to a state of insecurity. The informal economy is the source of livelihood for the teeming population of low-income earners in developing economies. Sacrificing urban governance at the altar of political expediency: Illegal street vending in Harare. Particularly characterized by t his dichotomy is the urban labour market. as This reflects the heterogeneous nature of the informal sector. The formal sector cannot absorb all the participants of the informal sector, even if government were to create jobs for all. The informal forest sector comprises an informal wood based sector which is the country’s largest user of wood, (most of which are burnt as fuel) and the non wood forest products sector. This research work has focused on the impact of unemployment with specific attention to Nigeria. Nigeria is the largest country in Africa, and the largest concentration of black people in the world — with a land area of close to 1 million square kilometers, and a population of well over 125 million. Findings from the study highlighted apprenticeship and credit sales as the major practices informal businesses engage in while also noting that such practices are integrated into the daily operations of informal businesses rather than as a separate department. This study examined the role of informal sector in income and employment generation besides the contribution of the sector to tax revenue. framework of informal economy in Nigeria. Speaking at an […] Although the informal economy accounts for a significant percentage of total commerce in many countries, there has been little management research about it. In view of the findings, it is recommended that government should show more than just a passive interest in the activities of the informal sector by creating a master list of all the informal sector operators in the economy, fight corruption and review the existing legislation to make ease of registration of businesses possible. 4. Two types of forward linkages are identified. Over the past twenty years or so, there has been a debate that basically asks “…whether the informal sector should really be seen as a marginalized, ‘survival’ sector, which mops up excess or entrenched workers, or as a vibrant, entrepreneurial part of the economy which can stimulate economic growth and job creation.” (African Union 2008). The European Journal of Development Research. Purpose: The purpose of this paper is to examine whether men and women starting a business use the informal economy and do so to test the viability of their venture. Therefore, the study recommends the need for policy initiatives towards exposing these young graduates to market opportunities through a mentor-protégé arrangement with successful entrepreneurs during the NYSC programme and providing the necessary supports in the form of funding. We outline some key issues and questions involving the informal economy that management researchers could help to answer, forming a potential research agenda in the process. The work made use of qualitative research design through the conduct of interviews. 15 May 2018. Towards an Educational Curriculum Aligned to the Reality of High Youth Unemployment in Africa. The result confirms the predictive ability of the PPM model on entrepreneurial intentions. growth. Informal firms operate in a shadowy zone where they produce legal goods and services but do not follow legal requirements to register with government authorities. L'analyse empirique faisant appel à un modèle de régression avec variables logit montre que les variables clés représentant le rôle que jouent les liaisons en amont dans le secteur formel de l'économie concernent l'enregistrement des entreprises du secteur informel, du niveau des investissements, du revenu annuel de l'entrepreneur, du nombre des employés, de l'expérience professionnelle antérieure des entrepreneurs et du niveau d'instruction des employés. A total of 187 questionnaires were administered on three categories of informal sector activities in the area, while interviews were conducted with the staff of the Area Office of the Ministry of Lands, Survey and Town Planning and of the Works Department of the Barkin Ladi local government council, which is the planning authority. The paper presents current data on youth unemployment on the continent and juxtaposes this against the skills which employers in Africa are looking for in terms of cognitive, non-cognitive and technical skills. The objective of the paper is to examine the planning challenges posed by the informal sector activities and to make appropriate recommendations towards integrating and regulating such activities within the settlement. Nigeria’s COVID-19 waste management policy should include the informal sector November 22, 2020 4.13am EST Chidi Nzeadibe , Adaeze Ejike-Alieji , University of Nigeria Men and women starting-up informally, however, require different policy approaches to help them formalise their business ventures. This study contributes to the literature on cross-country comparison of All the series were tested for normalities to determine the appropriateness of Ordinary Least Square (OLS) regression. This paper investigates the contribution of small firms to employment, job creation, and growth in developing countries. While small firms (. On a identifié deux types de liaisons en aval: il s'agit, d'une part, des accords de sous‐traitance avec les grandes sociétés nationales, les agences gouvernementales et les sociétés étrangères, et, d'autre part, de la fourniture de biens de consommation par les entreprises du secteur informel au secteur formel. Nigeria Deposit Insurance Corporation (NDIC) 17 11. informal sector because of their transito, authorities, illiteracy and taxes contributing, is a reflection of the population, economic, frameworks that exist in the state. AN EVALUATION OF THE CONTRIBUTION OF THE INFORMAL SECTOR IN EMPLOYMENT AND INCOME GENERATION IN NIGERIA: THEMATIC APPROACH, Effect of Informal Sector Tax Revenue on Capital Development in Lagos Metropolis, Nigeria’s Informal Economy, Social Responsibility and Sustainable Development, Characteristics, Challenges and Prospects of Informal Land Use Activities in Barkin Ladi Town, Nigeria, The determinants of location specific choice: small and medium-sized enterprises in developing countries. Enter your email address below and we will send you your username, If the address matches an existing account you will receive an email with instructions to retrieve your username, I have read and accept the Wiley Online Library Terms and Conditions of Use. Access scientific knowledge from anywhere. Specifically, there are at least five major areas where changes need to be made: 1) Establish an enabling environment and supportive regulatory framework, 2) Provide access to appropriate training, 3) Improve basic facilities and amenities and infrastructure, 4) Increase ability to obtain property title and access to credit, and 5) Improve national databases and establish uniform standards. Journal of Small Business & Entrepreneurship. é Patrick Ainley, Helen Rainbird and named contributors, 1999. There are no proper registration and identification of small businesses even medium scale business. © 2008-2020 ResearchGate GmbH. and you may need to create a new Wiley Online Library account. International Review of Applied Economics. Toward a Research Agenda on the Informal Economy, Is the informal economy an incubator for new enterprise creation? The lopsided nature of, institutions coupled with imbalances in the forma, study highlights the effectiveness of the apprenticeship, and decision makers should continuously revise the educational. The Nigerian Informal Sector (IS) is a major contributor to the Nigerian economy, accounting for a significant portion of employment and national GDP. endowments and types of business climate in their environment. ROLE OF INFORMAL SECTOR IN EMPLOYMENT GENERATION IN NIGERIA CHAPTER ONE INTRODUCTION 1.1 Background to the study. SMEs agglomerations are often due to natural resource Practical implications: If tax administrations seek to stamp out informal sector entrepreneurship, one hand of government will be eradicating a significant minority of the entrepreneurship that other hands of government wish to foster. All content in this area was uploaded by Adeleke Oladapo Banwo on Sep 01, 2016, The fuzzy boundaries and intertwined nature of informal and formal sectors in, impact on the economy. Key words: Informal Sector, Employment, Generation, Youths and Development. The Handbook of Economic Sociology, Second Edition is the most comprehensive and up-to-date treatment of economic sociology available. An empirical analysis. The amoebic nature The authors set the historical context and discuss the theoretical and practical aspects of acquiring the necessary knowledge and skills for competence. Shadow economy and unemployment rate in USA: is there a structural relationship? Over the past years, scholars have debated on whether the informal sector should really be seen as a marginalized sector, which mops up excess or entrenched workers or as a vibrant, entrepreneurial part of the Nigeria economy which can stimulate economic … Conceptualizing Livelihood Strategies in African Cities. Development Challenges of India After Twenty Five Years of Economic Reforms. For instance, the Central Bank of Nigeria (CBN) fiscal stimulus package which includes a 50-billion-naira credit facility to households and small-medium enterprises most affected by the pandemic can be effectively monitored through the use of social capital mechanisms. Subcontracting Linkages in the Informal Manufacturing Sector in Uttar Pradesh. The governments at various levels have, yourself’’ model also encourages the freedom, the leading states in the ease of starting a, unemployment. One of the recommendation include that the Car Wash Enterprise should be integrated into the SURE-P Programme of the government in order to make the enterprise more viable. Lagos- Mr. Segun Awolowo, the Chief Executive Officer of Nigeria Exports Promotion Council (NEPC) has said that Nigeria informal sector records at least N41 billion annually across the West African States.
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