What is it about?
This study explores the financial challenges faced by female entrepreneurs in Lima, Peru, specifically in the "Bodega" sector of small vendors. It investigates how education, financial literacy, and access to formal financial services influence their intentions to formalize their businesses. Surprisingly, the research found that legal registration (formalization) does not significantly impact their financial practices or reduce informal tendencies. Instead, financial literacy and inclusion play a bigger role in shaping their decisions, highlighting the complex dynamics of entrepreneurship in this context.
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Why is it important?
The study sheds light on how female entrepreneurs in developing economies navigate informal business practices, which are often overlooked in favor of legal formalization. By emphasizing financial literacy and inclusion over legal status, this research challenges traditional policies that prioritize formal registration. It also highlights the specific needs of older and younger women entrepreneurs, offering insights for public policies and institutional efforts to better support female-led businesses.
Perspectives
As an author, I’m struck by the resilience and creativity of female entrepreneurs in Lima’s Bodega sector. Their reliance on informal financial practices reflects deeper systemic barriers rather than a simple choice to avoid formalization. This research underscores the need for more inclusive policies and education tailored to women of all ages. I believe these findings can inspire better support systems and financial education programs to empower women entrepreneurs, ultimately contributing to more sustainable business ecosystems.
Professor Luis Demetrio Gomez Garcia
Pontificia Universidad Catolica del Peru
Read the Original
This page is a summary of: Beyond the counter: unveiling the financial informality dynamics of female entrepreneurs in Lima’s Bodega sector, Journal of Small Business and Enterprise Development, November 2024, Emerald,
DOI: 10.1108/jsbed-03-2024-0172.
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