Issues and Newness
Edited by Alain Fayolle
Chapter 15: Entrepreneurship Education for the African Informal Sector
Hanas A. Cader and David W. Norman Introduction This chapter assesses the role of the informal sector in Africa, the need to foster entrepreneurship education and also proposes a new approach to entrepreneurship education for the informal sector. The concept of the ‘informal sector’ or ‘informal economy’ itself originated from Africa. An International Labour Organization (ILO) employment mission to Kenya in 1972 concluded that rural–urban migration contributed to higher urban unemployment (ILO, 1972: 5–6). As urban unemployment increases, a high proportion of newly arrived migrants and urban dwellers have become engaged in small-scale production and distribution of goods and services as an alternative means of livelihood. Until recently this segment of the economy has been largely unregulated and has often been ignored in employment-related studies and in national income accounting exercises. However, in recent decades, as a result of recognizing its potential significance, the ILO has implemented many action programmes to improve the functioning of the informal sector in numerous different countries. Although perhaps explicit recognition of the potential significance of the informal sector first occurred in urban areas, it is also important to note the significance of the informal sector in rural areas as well. Given the small-scale nature of agriculture in most African countries, the informal sector in rural areas can be viewed as consisting of both farming and non-farming activities. Naturally in such areas farming usually provides the ‘catalyst’ for economic growth and employment, while the non-farm sector provides opportunities for activities relating to agriculture...
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