An analysis of the decision to formally register a new venture in Sub-Saharan Africa

Abstract

This dissertation considers the factors that influence the decision to formally register a new venture, by nascent entrepreneurs in Sub-Saharan Africa. Understanding these factors is important because registration is the inflection point where entrepreneurs move from the informal to the formal economy. Registered businesses are more likely to pay taxes, hire employees, access capital for growth, and participate in other activities that contribute to economic development. In Study 1, I use a grounded theory development approach and conduct a series of interviews with entrepreneurs and institutional actors in Ghana and Ivory Coast, to identify factors that influence the registration decision. In Study 2, I develop a model from Study 1, and use a survey design to evaluate the efficacy of the model. Both studies use three samples, two from the Nafana ethnic group, with one sample from Ghana and the other sample from the Ivory Coast, and one from the Bono ethnic group in Ghana.