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The purpose of this paper is to challenge the default portrayal of street trade as an informal occupation and spatial practice, by examining comparatively the changes in the regulatory frameworks of two politically distinct city administrations in Latin America since the introduction of the informal economy debate.

This paper draws from a comparative case study design to synthesize evidence from historical administrative records, secondary research and materials from a two-year fieldwork carried out in Lima and Bogotá in 2008 and 2009.

The author argues that the incorporation of the informal economy framework into local governments’ policymaking has reframed street trade as a subject of policy. Since the 1970s, the author traces a shift from worker-centered initiatives, through the deregulation of street trade, to entrepreneurial-centered approaches. Nowadays, both, Lima’s neoliberal governance focusing on “formalizing” and Bogotá’s socialist/progressive governance aiming at “upgrading” street trade respond more explicitly to distinct assessments about the informal economy – legalist and dualist, respectively. Yet, both cities converge in that the closer street trade is perceived as an informal occupation; the more likely policy initiatives decouple the right to work from the right to access public space, spurring more marginal forms of street vending.

Even though the informal economy framework has helped to draw attention to important policy issues locally, nationally and internationally, this paper calls for a critical revision of such framing at the local level to allow for inclusive urban governance.

The purpose of this paper is to test the effect of informal finance and trade credit on the performance of private firms.

Based on a survey to private firms in 19 cities, the paper empirically tests the promoting effects of informal finance and trade credit on the performance of private firms in China.

It was found that informal finance and trade credit have positive effects on private firms' performance measured by ROA. The net income reinvestment rate of private firms is positively related to whether or not the firm adopts informal financing or trade credit financing. A private firm having limited access to formal finance is more inclined to rely on self‐funds and is more limited by financing choices. Informal financing and trade credit can relieve the tension of cash flow chain but cannot solve the financing constraints. The empirical results also show that bank credit is still not the main financing choice for private firms and has not yet played a promoting role in private firms' performance and growth. Informal finance is more important to promote performance in manufacturing industry, while trade credit is more effective in wholesale and trading industry. The results show the coexistence viability of informal financing channels and formal financial institutions in China.

The policy implication is the Chinese Government should take careful steps to regulate informal financing sources.

After some theoretical literature, such as Lin and Sun, this paper explores for the first time the effect of informal financing channels on the performance of private firms.

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.

To do this, the results of a survey of 595 small business owners in the UK conducted in August 2012 are reported.

Of the 22 per cent of men and 13 per cent of women small business owners reporting that they traded informally when starting their business, 66 per cent of the men and 53 per cent of the women assert that a main reason was to test the viability of their business. Hence, just over one in six small businesses started by men and one in 14 started by women (one in eight overall) traded in the informal economy when starting-up in order to test the viability of the business.

A more extensive survey of a wider range of countries is required to further evaluate the tentative findings of this single country small-scale survey.

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. Men and women starting-up informally, however, require different policy approaches to help them formalise their business ventures.

This is the first paper to analyse whether men and women starting a business trade informally at the outset to test its viability.

Using small‐scale cross‐border trade and smuggling as an example of an informal practice carried out in many post‐socialist countries, the purpose of this paper is to explore which different meanings this activity possesses for the people being involved in it and in how far small‐scale cross‐border trade is being accepted and looked at by society. The authors hope to show the different connections between informal and formal activities and specificities of localities which people in the mentioned countries deploy when trying to secure their livelihood.

The authors used a qualitative empirical research including group discussions with small‐scale traders and small entrepreneurs, expert interviews with representatives of the border authorities and systematic observations at border crossing points and open‐air markets at the Finnish‐Russian, Polish‐Ukrainian, Polish‐Belarusian and Ukrainina‐Romanian borders.

The paper provides empirical insights about why people carry out smuggling and small‐scale trade and how these informal activities are perceived in the local environment. It suggests that informal economic cross‐border activities are often highly legitimized despite their illegal character. The border creates certain extra opportunities as it enables arbitrage dealings. Rather as a side effect though, the Schengen visa regime has evoked a decreasing profit margin of transborder economic activities. Therefore, it remains unclear whether the Eastern external EU border will serve as an informal economic resource in the future.

Thanks to a multisited qualitative approach to a very sensitive research topic, the paper allows empirical insights into meanings and uses of smuggling and cross‐border small‐scale trade.

The purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian context – a developing country in Western Africa. It advances new understanding on how Nigerian entrepreneurs trust in their indigenous institutions such as family ties, kinship, chieftaincy, religion, cooperatives and trade associations to resolve disputes arising from their exporting activities as opposed to dormant formal institutions in their country.

This exploratory study adopts an interpretive research paradigm, and it utilises a case study strategy. Data collected through observations, archival records and qualitative conversations with 36 exporting Nigerian small and medium-sized enterprises (SMEs) is analysed by utilising a combination of within and cross-case analysis techniques. Doing so enabled an in-depth study of the methods their owner-managers use in order to take advantage of the relationships they established through their long-standing cultural institutions in the place of weak formal institutions in their country.

Indigenous institutions have evolved to replace formalised institutions within the business environment in Nigeria. They have developed to become an alternative and trusted arbiter for solving SMEs' export issues because of weak/dysfunctional formal institutions in the Western African country. The owner-managers of exporting SMEs perceive formal institutions as representing a fragmented system that does not benefit their export businesses.

The findings demonstrate that there is need for policymakers to consider the role of informal institutions in the Nigerian context. Such an approach is essential given the economic importance and increasing number of SMEs that trade and export their goods through informal structures in Nigeria.

The study indicates that it is not just the void or absence of institutions that exist in a developing country such as Nigeria, but weak/dysfunctional formal institutions have been replaced by culturally embedded informal institutions. Thus, the study provides a new theoretical avenue depicting the concept of trusting in indigenous institutions.

The purpose of this paper is to show that, instead of replacing trade retaliation with alternatives that are equally problematic, such as monetary damages, mandatory trade compensation, or formal membership sanctions, the World Trade Organization (WTO) might gain from relying exclusively on informal remedies.

The paper critically reviews the main proposals brought forward in the literature and by WTO members on how to reform WTO remedies. It takes a fresh look at whether any viable, both economically and legally sensitive, alternatives exist.

First, the fact that WTO dispute settlement does not rely on monetary damages and on reparation for past losses is economically justified. Second, switching to an alternative remedy of mandatory trade compensation is not a viable alternative to proportional countermeasures. Third, introducing formal membership sanctions into the WTO would either remain ineffective or turn out to be counterproductive for progressive trade liberalization. Fourth, in order not to provoke an excessive increase of the total cost for WTO members to breach their obligations, any strengthening of the WTO's informal remedies should not be undertaken on top of existing remedies, but as part of a major paradigm shift built on the abrogation of trade retaliation.

The article contributes to the ongoing debate on how to reform the WTO's dispute settlement mechanism.

This article joins an already vast body of literature dealing with potential reforms of the WTO's dispute settlement mechanism. It provides a holistic review of the main existing reform proposals under both legal and economic aspects and adds original insights in discussing the replacement of trade remedies by strengthened informal remedies.

Presents findings from a case study looking at African medicine vendors in Durban, South Africa. Compares the culturally repressive apartheid period with the post‐apartheid explosion of self‐realization of the African population. Shows that street vending is still seen as an eyesore and a problem but still plays an important role in the post‐apartheid era as a form of resistance to simplistic African policies.

The International Labor Organization (2020) estimates that eight out of ten enterprises (i.e. own-account workers and small economic units) are informal worldwide. However, less is known about the internationalization of informal enterprises. Here, it is argued that economic blocs, such as sub-Saharan Africa, with a greater proportion of informal enterprises, may provide broader societal legitimacy for them to operate internationally. Thus, informal firms would need to collaborate with other firms to overcome their resource constraints. Geographic colocation is one way to facilitate positive interfirm interactions that promote networking and subsequently cooperation. The purpose of this paper is, thus, to addresses two questions. Firstly, how and to what extent does interfirm marketing cooperation in geographic colocation influence the internationalization of micro and small informal manufacturing enterprises? Secondly, how do the perceived benefits of local external economies moderate this relationship?

The study draws evidence from 125 randomly selected informal enterprises located in two major clusters in Ghana, using a mixed-method approach.

The partial least square - structural equation modeling (PLS-SEM) analysis applied revealed two central points. Firstly, sharing marketing costs allows informal firms to upgrade their phases of export development directly. Secondly, the linkage of increasing sales activities and local external economies encourages the progress of the phases of export development and the scope of internationalization. Results confirm that the cluster benefits of interfirm cooperation and local external economies on the informal firm internationalization process complement each other in addition to their linear relationship.

The study contributes to understanding the nexus of the informal sector, geographic colocation and the entrepreneurial internationalization literature. The results should motivate researchers and policymakers to approach informal firm internationalization through collaborative business activities.

This paper aims to evaluate whether early‐stage entrepreneurs and the established self‐employed in rural communities trade off‐the‐books and whether this tendency varies across deprived and affluent rural localities.

Face‐to‐face interviews were conducted with 350 households in both affluent and deprived rural communities in England.

In both the affluent and deprived rural communities surveyed, wholly legitimate enterprises represent just the tip of the iceberg. Beneath the surface is a large hidden enterprise culture of both registered businesses trading off‐the‐books and unregistered wholly off‐the‐books enterprises. However, the preponderance of both early‐stage entrepreneurs, as well as the established self‐employed to trade off‐the‐books is greater in deprived than affluent rural communities, intimating that deprived rural communities are perhaps relatively more enterprising and entrepreneurial than is currently recognised.

These findings are based on a small‐scale study of five English rural communities. Further studies are now required to evaluate whether similar findings are replicated elsewhere.

The paper reveals that legitimising the hidden enterprise culture in deprived rural communities could be an important but so far untapped means of promoting enterprise and economic development.

Evaluates the extent of informal entrepreneurship in rural communities and how this varies spatially.

Although it has been recognised that many entrepreneurs operate in the informal economy, little is so far known about their reasons for doing so. The purpose of this paper is to begin to unravel entrepreneurs’ rationales for trading in the informal economy in order to consider what policy measures need to be adopted to facilitate their formalisation.

To do this, the results of an empirical survey are reported conducted in Ukraine during 2006/2007 with 331 individuals who had started-up or owned/managed an enterprise.

Revealing that the rationales for entrepreneurs operating in the informal economy markedly differ according to whether they are wholly or partially informal entrepreneurs operating temporarily or permanently in the informal economy, the result is a call for a move beyond a “one-size-fits-all” policy approach and towards a variegated public policy approach whereby policy measures are tailored to tackling the different types of informal entrepreneurship, each of which operate informally for varying reasons.

No evidence yet exists of whether the rationales for engaging in each type of informal entrepreneurship, and the consequent policy measures that need to be used to formalise each type, are more widely valid. Further research to evaluate this is required.

This is the first paper to start to move beyond a “one size fits all” policy approach when considering how to facilitate the formalisation of entrepreneurs in the informal economy.