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RESEARCH PRODUCT

Entrepreneurship in Burkina Faso : An Economic Analysis of Occupational Choices in the Labor Market and Student Entrepreneurial Intentions

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The dominant view of entrepreneurship, particularly in developed countries, is a risky, dynamic activity undertaken voluntarily by a certain category of individuals - " so-called superstars" - in order to benefit more earning opportunities and greater social influence. However, this dynamic view of entrepreneurship contrasts with what is generally described in developing countries, where self-employment is largely conducted in the informal sector; a segment of the labor market that is considered "precarious" and only allows the individual to escape unemployment. Nevertheless, a number of studies, in Africa and more so in Latin America, show that this segment is desirable and likely to provide some individuals, especially entrepreneurs, with more competitive incomes than those working in the formal economy.Therefore, the first part of this thesis focuses on individuals' entry into entrepreneurship in Burkina Faso, particularly in the informal sector. Is this choice rational and motivated by earnings opportunities and/or rather constrained by the lack of employment opportunities? This section also questions the motivations for entering entrepreneurship with regard to gender. To answer these questions, we used data from the National Informal Sector Survey collected in 2015 from households in Burkina Faso. We analyzed the earnings gaps between different job segments and examined the determinants of entrepreneurship choice through structural models. First, the analysis of the entire employed labor force shows that wage earners on average have higher incomes than entrepreneurs. It also shows that the choice of entrepreneurial status is mainly based on the expected earnings differential, thus supporting the principle of comparative advantage described in self-selection models. However, taking into account the heterogeneity of job statuses (formal and informal), we find that informal jobs pay less on average than formal jobs, and the expected earnings differential has, at least this time, a negative and significant impact on the probability of starting an informal business. Moreover, the risk of being unemployed is a key determinant of the choice of this employment status. These results, observed for both men and women, indicate that the labor market in developing countries is segmented and that entry into informal entrepreneurship is particularly constrained.The results of this part then led us to question, in a second part of the thesis, the professional project of individuals who had not yet entered the labour market. Based on data collected from students at the Universities of Ouaga 1 and Ouaga 2, we sought to understand what factors might be likely to promote or inhibit their entrepreneurial intentions. We thus analyzed the determinants of entrepreneurial intention through different estimation methods. The results of our analyses show that students' entrepreneurial aspiration is based on earnings expectations but also on non-monetary expectations, in particular the need for independence/autonomy. We note that it is individuals with a larger stock of human capital - so-called "jack off all trades" - who are more likely to proclaim their entrepreneurial plans, and not those who were at an advanced stage in their studies. We also find that it is individuals with greater mastery of managerial and specific skills, and who have received specific entrepreneurship education, who are more likely to want to start a business.