Entrepreneurial Behaviour in Informal Economy: A Case Study on Street Food Entrepreneurship in Dhaka, Bangladesh

This research investigates entrepreneurial behaviour of street food sellers operating within the informal food industry in Dhaka, Bangladesh. The aim of the research is to explore whether street food entrepreneurs are behaving productively, unproductively or destructively. Thirteen semi-structured interviews are conducted with government officials, policymakers, academics, food adulteration researchers, nutritionists and NGO representatives, providing insight into the food adulteration phenomenon, with particular attention given to the sector selling adulterated food to children. The research uses grounded theory in analysing qualitative data and finds that food safety concerns are more alarming within the informal street food industry. Following this, data is collected from 250 questionnaires with street food retailers. Chi-square tests are conducted to investigate statistical relationships between variables identified at the qualitative phase of the research. Findings reveal that entrepreneurs from the informal street food industry are generally more unproductive in their behaviour. In addition, the research finds that a number of the factors that influence the behaviour of street food retailers from the informal food industry are not within their control. An ineffective regulatory framework, concerns with education, knowledge and awareness of safe food among entrepreneurs are the main factors influencing entrepreneurs to behave unproductively. This research did not find any evidence suggesting destructive entrepreneurial behaviour. Theoretical and practical implications of the research findings are discussed, and the research recommends the regulatory body to develop a simple transition process for entrepreneurs from the informal street food industry to become formal, irrespective of their size and age of business.