| 02.09.2024

Innovative solutions from illegal ventures can be harnessed also in society

What motivates innovators operating in the informal economy, and why do they continue to run illegal ventures? New research uncovers the dynamic role of contexts and entrepreneurs' lived experiences in their decision to run illegal ventures.

In his doctoral thesis, Moses Osofero explores the motivations of entrepreneurs who form informal ventures and how they justify the continued running of such ventures.

“I found that policy formulation and implementation, and individual lived experiences, such as adversity play crucial roles when these entrepreneurs decide to stay within the informal economy”, claims Osofero.  

Research on the informal economy has largely focused on measuring its size and impact on the mainstream, formal economy. It has also been perceived as primarily negative, with interventions most focused on punitive measures against its actors.

“My research reveals diverse, innovative solutions emerging from the informal economy. One such solution is cryptocurrencies, which were developed as currency for illegal operations before gaining relevance for general commerce. Another is how unemployed youths in the oil-rich region of Nigeria, due to adversity, invent locally fabricated refineries to refine stolen crude oil and sell the finished products locally and internationally,” says Osofero.

These innovative solutions and many more emerging from the informal economy can only be harnessed when governments and policymakers begin to seek to understand the actors in the informal economy and their motivations.

“A change in our approach to the informal economy, with more effort invested in understanding the motives and justifications of the actors in the informal economy, would provide a fresh perspective that could lead to more effective policy formulation and open us up for exploring the innovative economic solutions that are emerging from the much-maligned informal economy”. Osofero summarises.

You can read the whole thesis here: Understanding Enterpreneurship in the Informal Economy : Theories, Justifications and Motivations

Moses Osofero will defend his thesis on 5 September, at 12.00 in Hanken School of Economics, Arkadiankatu 22, Helsinki.
The doctoral defence will be held as hybrid. Participants can attend on-site or via videoconference.
Access the video conference via the link: https://go.hanken.fi/defence-osofero

More information:
Moses Osofero
E-mail: moses.osofero@hanken.fi
Opponent: Manuel Hess, Grenoble Ecole de Management
Custos: Joakim Wincent