African Women in the Entrepreneurial Landscape: Reconsidering the Formal and Informal Sectors

Informal and formal can be seen as «dual economies» of African countries. Governments often concern themselves with the formal, while development agencies often support the informal. This paper discusses the full landscape of entrepreneurship, considering both sectors, and the range from small to large within each. It queries whether or not there can be movement within and between sectors, and if the «rages to riches» upward movement, as seen in developed countries, is possible in developing ones. The range of women in traditional micro enterprises to the emerging new generation of African women owners of large‑scale companies are discussed in particular, but the research applies to both men and women. A paradigm of the entrepreneurial landscape will be presented with variables that consider demographics; types of typical enterprises and firms; product sourcing and markets; start‑up capital; and movement within and between the sectors. Some conclusions are that the informal‑formal distinction has been useful to disentangle the landscape, but movement between may not be substantial other than minor taxation for sites and services because of the entry requirements of capital, education, business networks, etc. Similarly, within the formal sector of small to medium to large businesses, there is some movement but they too are limited by access to capital, networks, market intelligence and niches, and product innovation. Nevertheless, there is a growing cadre of women at the top who both confound researchers/donors and provide role models for success within their societies.