Exploring the role of informalisation on the eudaimonic well-being of informal entrepreneurs

Abstract

The research study explores the influence of informalisation on the eudaimonic well-being of informal entrepreneurs, particularly semi-formal affluent and informal-affluent entrepreneurs operating the Johannesburg Central Business District (CBD). Past research studies have focused on the contextual factors that influence individuals to participate and remain in informal sector, however, there is little research on the cognitive factors that influence individuals to participate and remain in the informal sector. The research explores how informalisation influences the cognitive well-being of semi-formal affluent and informal-affluent entrepreneurs using the eudaimonic well-being theory. The theory has received little research in terms of informal entrepreneurship and furthermore, it seeks to understand the well-being of individuals using six components that speaks to living a meaningful, purposeful life. The theory focuses on six components of well-being i.e. purpose in life, self-acceptance, personal growth, autonomy, positive relationships and environmental mastery. The study investigates the influence of informalisation on each of the components of the eudaimonic well-being theory. The study employed a qualitative, exploratory research approach to gather in-depth lived experiences and perspectives from semi-formal affluent and informal-affluent entrepreneurs. Data was collected using semi-structured interviews with 12 informal entrepreneurs of which 6 were semi-formal entrepreneurs and the other 6 were informal-affluent entrepreneurs. The findings indicated that informalisation fosters a sense of meaning and purpose, promotes personal growth and autonomy and provides endless opportunities to informal entrepreneurs. The study provides insights tor policymakers to develop formalisation policies that acknowledge and support the psychological well-being for informal entrepreneurs to transition to the formal sector.