Paper short abstract:

This paper investigates informal entrepreneurs' perceptions and practices of environmental and social sustainability in Kenya. Using thematic analysis, we considered what the main barriers to sustainability are using an entrepreneur-driven approach.

Paper long abstract:

Existing practice and literature regarding sustainability in the informal sector has focussed on a top-down approach. That is, policy makers have introduced policies or regulations targeting the informal economy to drive sustainable development.

These initiatives often fail because they do not consider dynamics in the informal sector which hugely differ compared to traditional sectors of the economy. Recent research has shown that a bottom-up (entrepreneur driven) approach to this challenge can a) be an effective way to increase sustainability in the informal sector and b) offer insights to support top-down approaches.

We used thematic analysis to extract key themes emerging from semi-structured interviews with informal entrepreneurs throughout Kenya's Rift Valley. The analysis was driven by our five hypotheses about where barriers to environmental and social sustainability might occur:

1. A lack of awareness of sustainability

2. A lack of knowhow about what sustainable practices are in their business

3. The resource (time, money, etc.) implications of sustainability being unaffordable

4. Lack of access to key requirements for sustainable practices (e.g. technology)

5. Behavioural and motivational barriers

The main finding is that people in the informal economy are often aware and care about sustainability. They have the knowhow of some sustainable practices, and it is not uncommon for these to be financially feasible. Nonetheless, access to appropriate skills and high set-up costs are major barriers. Providing finance and skills for relevant investments can be key to encourage entrepreneurs towards more sustainable practices.