Formalization of Enterprises in Senegal, Benin, and Burkina Faso: Segmentation Approach to Informal Entrepreneurs
Date
2021-11-15
Authors
Dieng, Abdou Khadre
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
This paper aims to identify the determinants of business formalization in West
Africa, specifically in Senegal, Benin, and Burkina Faso. The methodology used
is based on a theoretical model on formality and a Logit model. We adopted the
segmentation approach of informal entrepreneurs. We distinguished between
the ambitious informal entrepreneur and the default or non-ambitious informal
entrepreneur. In the three countries studied, the results showed the importance
of access to business premises, firm productivity, and the ambition of the
informal entrepreneur on formalization. The age of the firm, access to ICT, and the business environment have a significant influence on formalization only in Benin.
The average level of education for employees is significant only in the case of Senegal.