Vol. 1 No. 1 (2020)
Navigating Informality: An Ethnographic Analysis of Entrepreneurial Agency and Institutional Constraints in Lagos (2020–2026)
Abstract
The informal sector is a dominant feature of Lagos's economy, yet its internal dynamics and the interplay between entrepreneurial agency and institutional constraints remain insufficiently understood from a behavioural perspective. This study aims to ethnographically analyse how informal entrepreneurs in Lagos navigate complex institutional environments, identifying the behavioural strategies they employ to seize opportunities and mitigate systemic challenges. A six-year immersive ethnographic study was conducted, employing participant observation, in-depth interviews, and document analysis with a cohort of 42 informal entrepreneurs operating across various sectors including street vending, artisanal work, and small-scale manufacturing. Entrepreneurs exhibit sophisticated, context-dependent agency, notably through 'calculated non-compliance' with formal regulations, which was a central theme for approximately 70% of participants. A key concrete result is the identification of a behavioural heuristic termed 'kin-first resource allocation', where familial obligations systematically precede business reinvestment. Entrepreneurial behaviour in Lagos's informal economy is characterised by adaptive, socially embedded decision-making that strategically negotiates, rather than merely succumbs to, institutional voids and constraints. Policymakers should design regulatory frameworks that recognise and integrate existing informal behavioural logics. Financial institutions ought to develop products accommodating the cyclical, kinship-influenced cash flows observed. informal economy, entrepreneurial behaviour, institutional voids, ethnography, behavioural finance, Lagos This paper provides a novel, longitudinal behavioural dataset and introduces the concept of 'calculated non-compliance' as a core entrepreneurial strategy, challenging simplistic narratives of informality as mere survivalism.
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