GROWTH TRAJECTORY AND INFORMAL SECTOR BUSINESSES IN NIGERIA: THE CASE OF ENUGU STATE

Abstract

The informal sector has become the bedrock for employment creation. However, its capacity for growth and production of goods and services remains doubtful. This study investigated the growth path of businesses in the informal sector and factors that sustain this growth trajectory in Enugu State, Nigeria. A sample of 500 respondents was chosen from two communities in each of the two local government areas from the three senatorial zones within Enugu State. The sampling techniques employed were purposive and stratified random sampling. Survey and quantitative research techniques were adopted. Results did not confirm a vertical growth trajectory of informal sector businesses but confirmed that economic, demographic, and environmental factors drive the informal sector horizontal growth trajectory in Enugu State. Therefore, we recommend a paradigm shift that curbs corruption, allows the gains from growth to trickle down, creates access to finance, and provides critical infrastructure to facilitate the vertical integration of informal sector businesses with the formal sector for improved productive capacity.