Title:
INFORMAL SECTOR ENTREPRENEURSHIP, EMPLOYMENT AND INCLUSIVE GROWTH IN SOUTHEASTERN NIGERIA

Authors:
Stella. I. Madueme and Joan Chinonyelum Okafor ,Nigeria

Abstract:
This study empirically examined the relationship between informal entrepreneurship, employment and inclusive growth in Southeastern Nigeria based on the neo-Schumpeterian framework. 500 respondents were randomly selected across the states in the southeastern region using a structured questionnaire. The Ordinary Least Square (OLS) technique was employed in analyzing the data. Informal sector entrepreneurship was measured by the number of business ownership, while employment was captured by informal wage and self-employment. An index of inclusive growth was constructed using income growth and equity in income distribution. Per capita household income growth was used as income growth and the differences in average income were used to capture equity in income distribution among the population of the study. The results of the study showed that informal sector entrepreneurship increases informal employment and directly impacted on inclusive growth but the indirect impact on inclusive growth through employment is insignificant. We recommended formalization of the informal sector, however, the formalization process should not be directed towards controlling and regulating. Instead, it should be enabling and supporting informal enterprises. The enabling methods should include the provision of suitable premises for entrepreneurs; organizing pieces of training on entrepreneurial skills development, employment practices and contracts, provision of water and electricity as well as low-interest loans and credits until they become more mature and ultimately part of the formal sector. This process will also fast formalize the informal sector, enhance growth and will bring about an increase in employment, earnings and more suitable job conditions for the poor.