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Article
Publication date: 24 April 2023

Brenda Silupu, José Ernesto Amorós, Belen Usero and Ángeles Montoro-Sánchez

Motivations and access to resources for venturing differ between men and women. In developing countries, there has been an increase in businesses that do not have a specific…

Abstract

Purpose

Motivations and access to resources for venturing differ between men and women. In developing countries, there has been an increase in businesses that do not have a specific location and persist in informality. This research aimed to evaluate, from a gender perspective, the moderating effect of the decision not to have a place in the relationship between human capital (education, experience and type of entrepreneurship) and business informality.

Design/methodology/approach

Using the National Household Survey 2014–2018, a sample of 50,313 Peruvian entrepreneurs was obtained − 23,314 women and 27,002 men – who have been in business for over three years. The data were analysed with logistic regression.

Findings

The results showed a moderating effect of entrepreneurship without a settled location on the relationship between education and informality in the case of women. And, for men, the moderating impact falls on the education, experience and reason for venturing that influences the formality of their businesses.

Originality/value

The problem of business informality of established companies with more than 42 months of operation is analysed. The moderating effect of the decision not to have a specific location on the relationship between human capital and informality is explored. This work extends business informality studies in Latin America developing countries, incorporating a gender perspective.

Propósito

Las motivaciones y el acceso a recursos para emprender son diferentes entre hombres y mujeres. En países en desarrollo, se han incrementado los negocios que no disponen de un local específico y persisten en la informalidad. El objetivo de esta investigación fue evaluar, desde una perspectiva de género, el efecto moderador de la decisión de no disponer de un lugar específico en la relación existente entre el capital humano (educación, experiencia y tipo de emprendimiento) y la informalidad empresarial.

Diseño/metodología/enfoque

Se utilizó la Encuesta Nacional de Hogares 2014–2018, donde se obtuvo una muestra de 50.316 microempresas peruanas −23.314 lideradas por mujeres y 27.002 lideradas por hombres— con más de tres años de operación. Los datos fueron analizados con la técnica de regresión logística.

Hallazgos

Los resultados mostraron un efecto moderador de los negocios sin local específico sobre la relación entre la educación y la informalidad en el caso de las mujeres. Y, para los hombres, el efecto moderador recayó sobre la educación, experiencia y el tipo de emprendimiento que influye sobre la formalidad de sus negocios.

Originalidad/valor

Se analiza la problemática de la informalidad en las empresas establecidas con más de 42 meses de operación. Se explora el efecto moderador en la decisión de no tener un local específico en la relación entre capital humano e informalidad. Este estudio amplía los estudios de informalidad empresarial en países en desarrollo de América Latina, incorporando una perspectiva de género.

Details

Academia Revista Latinoamericana de Administración, vol. 36 no. 2
Type: Research Article
ISSN: 1012-8255

Keywords

Article
Publication date: 30 December 2021

Brenda Silupu, Belen Usero and Ángeles Montoro-Sánchez

The formalization of a company is a process that requires compliance with standards established by government institutions. In developing countries, many businesses start this…

Abstract

Purpose

The formalization of a company is a process that requires compliance with standards established by government institutions. In developing countries, many businesses start this process, but do not finish it, with different levels of formality. The objective of this research is to analyze how the perception of entrepreneurs about bureaucratic procedures and the sector determine the level of formality regarding an established company that has taken the first step to formality.

Design/methodology/approach

The National Survey of Micro and Small Enterprises (MSEs) is used with a sample of 4,619 Peruvian MSEs with more than three years of operation within the manufacturing and services sector. The data are analyzed with the ordered logistic regression technique.

Findings

The results show that the more favorable the perception of entrepreneurs about the ease of bureaucratic procedures, the higher the level of business formality; and companies in the manufacturing sector are less formal than those in the services sector. In addition, the perceptions of entrepreneurs positively moderate the level of formality in the case of companies in the manufacturing sector.

Originality/value

Levels of formality in established companies are analyzed, defined by the compliance degree with the requirements to be a formal company. The literature on business informality in emerging countries is expanded, particularly in Latin America, incorporating the analysis of the formalization process.

Propósito

La formalización de una empresa es un proceso que exige el cumplimiento de normas establecidas por las instituciones de gobierno. En países en desarrollo, muchas empresas empiezan este proceso, pero no lo terminan, existiendo diferentes niveles de formalidad. El objetivo de esta investigación es analizar cómo la percepción de los empresarios sobre los trámites burocráticos y el sector determina el nivel de formalidad de una empresa establecida que ha dado el primer paso hacia la formalidad.

Diseño/metodología/enfoque

Se utiliza la Encuesta Nacional de la Micro y Pequeña Empresa con una muestra de 4.619 micro y pequeñas empresas peruanas de los sectores de manufactura y servicios con más de tres años de operación. Los datos son analizados con la técnica de regresión logística ordenada.

Hallazgos

Los resultados muestran que cuanto más favorable es la percepción de los empresarios sobre la facilidad de los trámites burocráticos mayor es el nivel de formalidad empresarial, y las empresas del sector manufactura son menos formales que las del sector servicios. Además, las percepciones de los empresarios moderan positivamente en el nivel de formalidad para el caso de las empresas del sector manufactura.

Originalidad/valor

Se analizan niveles de formalidad en empresas establecidas, definidas por el grado de cumplimiento de las exigencias para ser una empresa formal. Se amplía la literatura sobre informalidad empresarial en países emergentes, particularmente en América Latina, incorporando el análisis del proceso de formalización.

Details

Academia Revista Latinoamericana de Administración, vol. 35 no. 1
Type: Research Article
ISSN: 1012-8255

Keywords

Article
Publication date: 14 May 2020

Thushari Wanniarachchi, Kanchana Dissanayake and Carolyn Downs

The purpose of this study is to assess sustainability across the handloom industry in Sri Lanka and identify opportunities for sustainable innovations supporting new markets…

2112

Abstract

Purpose

The purpose of this study is to assess sustainability across the handloom industry in Sri Lanka and identify opportunities for sustainable innovations supporting new markets, development of small-and-medium enterprises (SMEs) and growth in the Sri Lankan craft sector.

Design/methodology/approach

Using a multiple case studies methodology, 10 case studies and 37 semi-structured interviews were analysed along with the triple-layered business model canvas.

Findings

The study reveals the handloom industry to be fundamentally sustainable but with structural barriers that hinder both innovation and growth. The environmentally conscious production process and social inclusion within weaving communities are the key driving forces of sustainability in the sector; however, the structure of the industry and lack of access to markets and information act as barriers to both innovation and growth. The incorporation of design interventions, closed-loop manufacturing strategies and the encouragement of community-based entrepreneurship would support sustainability-orientated business innovation in the handloom industry.

Originality/value

The rapidly increasing market share for high-quality, hand-made goods indicates the potential of the creative industries to accelerate socio-economic growth. Handloom textiles is attracting growing interest in fashion markets because of increasing concern about exploitation in production, thus encouraging interest in the economic benefits of fairly traded, high quality materials and the potential contribution of handloom to sustainability in the fashion industry. The results of this study will support the handloom industry and policy-makers in developing support for sustainable innovation in the handloom industry.

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