From challenges to competencies: informal female entrepreneurship in emerging economies

Purpose Informal female entrepreneurs in emerging economies operate in challenging business environments. This research examines the competencies of informal female entrepreneurs (IFEs) to explore how they persist because and despite the unique set of challenges they face. Design/methodology/approach We undertake a qualitative study focusing on IFE in the Indian context. Using the abilities–motivation–opportunity (AMO) framework as a theoretical lens, we interviewed 14 IFEs to gain insights into their entrepreneurial challenges and understand how they address the challenges. Findings The results demonstrate that IFEs are prone to various challenges around the individual level, business challenges on an operating and functional level and other challenges rooted in their business environment. Further, the study sheds light on the competencies of IFEs on three fronts, namely, ability-enhancing competencies, including – technical skills, problem solving, communication and adaptability; motivation-enhancing competencies, including – self-motivation, resilience and optimism and lastly, opportunity-enhancing competencies, including – local-centric approach, networking and resourcefulness. Research limitations/implications The study highlights the nuanced settings of informal female entrepreneurship in an emerging economy context. By highlighting the challenges and competency interplay, our study opens novel avenues for the interrelationships to be studied in further detail. Originality/value Our study provides close insight into the everyday challenges of IFEs operating in informal economies. Their competencies and perseverance-related attributes contribute to the mainstream entrepreneurship literature, as these entrepreneurs exhibit unique competencies that allow them to thrive in challenging contextual settings. Their willingness to learn new skills, opportunity recognition, motivation and adaptability skills contribute to a better understanding of the phenomenon of informal female entrepreneurship.