Influence of informal entrepreneurial practices on sustainable livelihood strategies in Sub-Saharan Africa

Informal entrepreneurship is the primary source of livelihood for millions in Sub-Saharan Africa, yet how specific informal practices translate into sustainable livelihood strategies remains theoretically and empirically underdeveloped. Existing studies are fragmented, methodologically limited, and lack an integrative framework. This study uses Partial Least Squares Structural Equation Modeling (PLS-SEM) on survey data from 425 informal entrepreneurs across six states in Southwestern Nigeria to test five core practices: informality, social capital, multiple income-generating activities, indigenous knowledge, and adaptive capacity. Results show that all five practices significantly influence sustainable livelihood strategies, with adaptive capacity (β = 0.340, p < 0.001) and indigenous knowledge (β = 0.230, p < 0.001) being the strongest drivers. Together, these informal practices explain 59% of the variance in livelihood sustainability. The study proposes the Entrepreneurially-Enhanced Sustainable Livelihoods Framework (EESLF), repositioning informal entrepreneurs as proactive agents rather than passive survivors. Policy should shift from formalization to supporting ecosystem enablers: trust networks, local innovation, and adaptive capacity.