Entrepreneurship in the Informal Economy: Why it Matters

The informal economy is generating 10–20% of GDP in developed countries. It takes many forms and is difficult to measure, but has nevertheless a permanent and widely acknowledged characteristic: strong entrepreneurial dynamism. However, research seldom focuses on this aspect. This paper addresses this gap by offering a conceptual framework for entrepreneurial activities within the informal economy. The authors also discuss how crossing canonical entrepreneurship models and theories with atypical empirical contexts – such as, for instance, deprived neighbourhoods – can help consolidate existing evidence and/or, on the contrary, unveil myths and even generate new hypotheses and innovative and stimulating management methods.