What determines enterprises' technical efficiency? An empirical investigation of informal enterprises in Burkina Faso Online publication date: Wed, 18-May-2016
by Denis B. Akouwerabou
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 28, No. 2/3, 2016
Abstract: Although the creation rate of new informal enterprises is very high in the cities of developing countries, the bankruptcy rate of such enterprises is also significant. This article studies the determinants of the growth rate and technical inefficiency of informal production units (IPUs). The data used in this study were collected from enterprises in Ouagadougou based on a survey of informal enterprises in the business of hairdressing, two-wheeled mechanics, carpentry, and sewing. Analysis of the data showed that IPUs run by skilled entrepreneurs are less dynamic than those run by non-qualified entrepreneurs in the short run. Detailed results further showed that qualified entrepreneurs conducting business in the informal sector expect the formal sector to offer a more profitable opportunity than the informal sector. Our data also showed that the IPUs become more inefficient as their workers contract more diseases. However, having qualified workers enables IPUs to reduce technical inefficiencies.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Entrepreneurship and Small Business (IJESB):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook