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Browsing Accounts by Author "Abdallah, Gorah. K."

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    Differences Between Firms from the Formal Sector and the Informal Sector in Terms of Growth: Empirical Evidence from Tanzania
    (Journal of Entrepreneurship in Emerging Economies, 2017) Abdallah, Gorah. K.
    Purpose – Small businesses growth has become an important area of study in the field of entrepreneurship. This paper aims to extend the inquiry by investigating whether there is a significant difference in growth between firms from the formal sector and the informal sector in the least developing countries (LDCs), particularly Tanzania. Design/methodology/approach – A survey strategy, as well as non-probability sampling, are used. The sampling included 50 formal and 61 informal small businesses from the furniture industry. Data collected were evaluated using chi-square and compounded annual growth rate (CAGR) techniques. Findings – The results indicate that firms from the formal sector do not grow faster than firms from the informal sector. on the contrary, our tests reveal that firms from the informal sector predominantly grow faster than firms from the formal sector. Research limitations/implications – The study was conducted in Tanzania which is just one of the 48 LDCs in the world. Second, the literature that is used predominantly applies to developed countries. Third, the fieldwork is dependent on the respondent’s perception. Finally, change of measurement scale from five to three is ought to have contributed to mixed findings. Practical implications – The overall implications are that external factors like inadequate regulatory tax systems may affect the growth of formal small businesses and thus influence market opportunities for informal small businesses. Further, internal factors like inefficiencies of workers from formal enterprises may affect growth and therefore create more opportunities for informal enterprises. Originality/value – Exploring differences between firms from the formal sector and the informal sector and the way five scales were aggregated into three scales in the methodology.
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    Unboxing Entrepreneurial Motivations in Tanzania: Business-Related and Personal-Related Factors
    (Journal of African Business, 2020) Abdallah, Gorah. K.
    An increasing number of researches has explored entrepreneurial motivations in terms of either opportunity, necessity or a mix of these two, in emerging contexts such as informal economies of Least Developed Countries (LDCs). However, research has stopped short exploring entrepreneurial motivation beyond these three previously mentioned types. This study expands the distinction of opportunity, necessity and mixed motivations in LDCs by exploring additional underlying dimensions. Based on a literature review and a qualitative pre-study with experts on the spot, 170 informal entrepreneurs in Tanzania were surveyed with a questionnaire covering 30 items measuring entrepreneurial motivations. The analyses unbox entrepreneurial motivation in two new distinctive types: those motivations related to the business and those related to the person. On a general level, this study follows up on the increasing call for contextualization of entrepreneurship research. On a more granular level, this study contributes to the existing literature of entrepreneurial motivation, especially in LDCs, by providing detailed insights of two motivation types of informal entrepreneurs in their consideration of shifting to the formal sector. Moreover, detailed pertinent information of the informal entrepreneurs is described, providing a closer look at an LDC’s informal economy.