The Informal Economy in Developing Nations

2019 ◽  
Vol 8 (1) ◽  
pp. 40-61 ◽  
Author(s):  
Gautam Sharma ◽  
Hemant Kumar

Purpose The purpose of this paper is to discuss the commercialisation mechanisms of the innovations that emerge from the informal sector of Indian economy. Also known as grassroots innovations, they are said to better fit with the local market demands and conditions in the developing nations of the world. The paper discusses the grassroots innovation ecosystem in India and the role that is played by the state in providing institutional support. Design/methodology/approach The paper is based on an exploratory study using both the primary and secondary sources of data. Primary data are taken from the interview of the innovators during the field work, whereas secondary data are acquired from research articles published in various journals indexed in Scopus and web of sciences, government publications and reports. The annual reports of National Innovation Foundation are analysed to gather information and to build the arguments for this paper. The secondary data are also collected and evaluated from the database of the grassroots innovators available on Grassroots Innovation Augmentation Network. Findings The paper provides insight into how the grassroots innovations are commercialised in India through different pathways such as social entrepreneurship, technology transfer and open source technology. It takes four case studies to discuss the institutional support to the grassroots innovator and the challenges in the diffusion of the grassroots innovations. Research limitations/implications Due to the chosen research approach, the results cannot be generalised on all grassroots innovations. Researchers are encouraged to conduct a survey of more grassroots innovations in order to derive generalised outputs. Practical implications The paper includes implications for understanding the diffusion process of grassroots innovations that can be useful for all the emerging and developing nations. Originality/value The paper fulfils an identified need to study the diffusion modes of informal sector innovations and management of grassroots innovations.


2013 ◽  
Vol 18 (01) ◽  
pp. 1350004 ◽  
Author(s):  
COLIN C WILLIAMS ◽  
YOUSSEF YOUSSEF

The aim of this paper is to evaluate critically the gender variations in informal sector entrepreneurship. Until now, a widely-held belief has been that entrepreneurs operating in the informal sector in developing nations are lowly paid, poorly educated, marginalized populations doing so out of necessity as a survival strategy in the absence of alternatives. Reporting an extensive 2003 survey conducted in urban Brazil of informal sector entrepreneurs operating micro-enterprises with five or less employees, the finding is that although less than half of these entrepreneurs are driven out of necessity into entrepreneurial endeavor in the informal economy, women are more commonly necessity-driven entrepreneurs and receive lower incomes from their entrepreneurial endeavor than men despite being better educated. The outcome is a call to recognize how the gender disparities in the wider labor market are mirrored and reinforced by the participation of men and women in the realm of informal sector entrepreneurship.


2011 ◽  
Vol 16 (03) ◽  
pp. 351-369 ◽  
Author(s):  
COLIN C WILLIAMS ◽  
ANJULA GURTOO

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-to-face 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 self-employed 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.


Author(s):  
Pia Markkanen ◽  
Charles Levenstein

Globalization—and the manner in which it has been governed during the last decade—has harmed various public policy infrastructures of developing nations, but especially those in health, social, and environmental sectors. The poorest population suffers the most severe consequences, as production takes place in the “informal” economy and in homes. Work safety and health in the informal economy has not gained the attention it warrants and requires, considering that this “sector” constitutes the majority of the world's labor force. The purpose of this article is twofold: (i) to describe the working environment in home-based shoemaking—based on Indonesian and Philippines experience by Markkanen [1]; and (ii) to examine the research framework proposed by Levenstein and Tuminaro in The Political Economy of Occupational Disease [2] and further developed in Wooding and Levenstein, The Point of Production, 1999 [3]. The field investigation by Markkanen employed this approach to explore how hazardous working conditions and inadequate health protection are the product of complex, converging relationships among diverse “actors” or agents at international, national, community, and shoe industry levels.


2012 ◽  
Vol 2 (12) ◽  
pp. 176-177
Author(s):  
N. Sri Gokilavani N. Sri Gokilavani ◽  
◽  
Dr.D.Prabhakaran Dr.D.Prabhakaran ◽  
Dr. T. Kannadasan Dr. T. Kannadasan

GIS Business ◽  
2020 ◽  
Vol 14 (6) ◽  
pp. 1050-1061
Author(s):  
Sathish, ◽  
Rajendra Kumbharjuvenkar

The retail industry is changing worldwide, especially in developing nations. This retail transformation is a result of changing lifestyles, increased disposable income, growing brand consciousness and changing consumption patterns of consumers. In the process of meeting these growing expectations of consumers, there are noteworthy initiatives adopted by retail organizations. Brand equity of a retail store is seen as a major factor influencing buying decisions and repurchases intent of consumers’ world over.


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