Informal entrepreneurial formalization for migrants: Determinants and effects on jobs creation in Côte d’Ivoire (Published)
This paper analyses the determinants behind the formalization of immigrants’ informal entrepreneurship in Cote d’Ivoire and its effects on jobs creation. The data cover 400 informal business from the CAPEC/IDRC enterprises survey. The estimation of an instrumental variable model highlights, on the one hand, the barriers to formalisation and, on the other hand, the levers of formalisation. It emerges that taxes, the cost of registration, the ignorance of declaration procedures, family workforce and the narrowness of the market are the constraints to the formalization of immigrants’ entrepreneurship. On the other side, membership of a professional association, simplification of procedures and access to formal credit boost formalisation. In the same token procedures popularization and costs reduction are factors of formalization propulsion. However, the problem of access to the market is exclusively relevant for immigrants. Furthermore, the results show that the provision of formalisation increases jobs creation.
An organization can be likened to a building whose strength is determined by the structure and frames which holds it. The structure is the manner in which interrelated elements (resources) are arranged so that the building can be stable, resist stress and it provides the right form. To this end, for the performance of an organization to be effective, it is important to understand the right manner in which interrelated elements (structure) in the specific organization is arranged. To measure the performance of the organization, dependent variables such as sales, profit, and customer satisfaction will be considered. Also, the study utilized independent variables centralization and formalization organizational structures. This is to show the effects of the dependent variables on the independent variable. The research adopted quantitative design and applied mono method which brought about numerical data generated from questionnaire administered. The population of this study comprises of all staff of Covenant Micro Finance Bank as well as the customers of the banks. Total sum of 354 sample size comprising of both employees (51) and customers (303) of Covenant Micro Finance Bank is the sample size. The propositions assumed for this study are that: there is no relationship between organizational centralization and organizational customer satisfaction, there is no relationship between organizational centralization and organizational profit, there is no relationship between organizational formalization and organizational customer satisfaction and that there is no relationship between organizational formalization and organizational profit. Also, among the secondary data collected are views of various management researchers. As a result of the primary and secondary data collected, the study recommends that organizations should adopt decentralization structure and reduce formalization in the work place.