Informal Entreprenurship in Ghana: An analysis of motivational factors.

Abstract

The study was conducted in Ghana specifically Greater Accra region. The aim was to identify the motives for informal entrepreneurship. A total of 400 respondents were selected for data collection. A structured questionnaire which has been pre-tested was used. The collected data was analysed using SPSS. Descriptive statistics and logistic regression analysis were the mode of data presentation. The results revealed that, 48.2% of owners of small scale informal enterprises were females and 51.8% males. Majority (65%) of the respondents were between the year group 21 to 40. The majority of the respondents (60.1%) were married and 29% of them were single. Moreover, the owners of small enterprises surveyed were fairly literate: 32% of them were educated up to Senior High level, 28% of them have received Junior High Education, whiles 14.3% have up to primary education. However, 6.4% of them have no formal education. Further analysis using logistic regression, showed that, financial challenge, unemployment, experience acquired from previous employment and ones’ expectation of being better off as an entrepreneur will push an individual into entrepreneurship. The findings are that Ghanaian entrepreneurs are motivated mainly by necessity to start their engagements in the informal economy.