Entry, speed and degree of formality for household businesses: an integrated approach

Abstract

Purpose

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

Design/methodology/approach

The data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period.

Findings

This study elucidates how firm-level resources, entrepreneur characteristics and costs of doing business influence an entrepreneur’s decision to enter, the speed and the degree of formality.

Originality/value

This study provides insight into the origins of an entrepreneur’s decisions to the multidimensions of business formality through the lenses of the resource-based view, entrepreneurship and institution theories.

Citation

Luu, T.D. (2024), "Entry, speed and degree of formality for household businesses: an integrated approach", Journal of Entrepreneurship in Emerging Economies, Vol. 16 No. 3, pp. 812-841. https://doi.org/10.1108/JEEE-04-2022-0111