Local economies in countries that receive economic immigration and the country of origin of this flux of migration obey the contexts and dynamics that can be put in perspective to create synergies and to operate to the development of these same migrant populations. The informal economy generally presents an abundant offer in sources (type of distribution and types of actors) and is rich in the diversity of references (in products and services) but it confronts itself to a volatile demand or more precisely a random “willing to pay”. The latter justifies itself by the economic environment characterized among other things by a weak consumer purchasing power and a household confidence that does not aim for the purchasing of pleasures but to those dictated by the strict necessity and the weak occurrence of purchasing based on stimuli where the vector is the publicity or the visual presentation of the sample. In these conditions, building an informal business and succeeding is a challenge that starts with the assimilation of the basic entrepreneurial notions before secondly dwelling on the levers to improve sales, notably by the mastering of the newest declensions of marketing (an adequate promotion of the quality and performance) more adapted to realities of ethnic or informal entrepreneurship and therefore of the community economy. We go towards a rehabilitation of the consumer taken into inertia by the “fear of unemployment” (dead Time) engendering the debt and of the producer taken into attraction by “the comfortable price” (without effort) engendering speculation. This passes by the modeling and later the explanation of the economic mechanisms in play. Then by the invitation to a change in attitude. This is nothing but the start of this process.
This comes to completing the series of tools that already focused on the structuring of one’s ethnic business (“Business in the box”), integration (“Successful citizen through entrepreneurship”), and strategy (“Ethnic project strategy”). This time we cover the aspects of the business’ creation in the informal economy. My approach is to federate the ethnic economy and the informal economy in what I call the community economy. In fact, there exist not only similarities in the mechanisms, the identity and profile of the actors but also the possibility of creating bridges between the two composites to reinforce the power of the all thus constituted. In “Business in the box”, we privileged an alternative approach of what is generally in the market economy and especially in the local economy of the host countries of the ethnic entrepreneurs. Here, I chose to transmit in a relatively simple way the rudiments of formal entrepreneurship to both strengthen the capacities of young actors but especially to permit them to prepare to convert themselves to an economy system equivalent to market economy. Does this have a contradiction? Ultimately, the two approaches aim to integrate to the competitive local economies with assets of the ethnic and informal natures that originate with the structures originally put in place: adaptability to the market, strategic simplicity, proximity to the community, solidarity between actors, financing based on personal savings, tangible assets etc. It’s therefore once again a correction of (and not a rupture with) the existent which I propose in the lines that will follow.
“The basic approach of the community economy is to benefit and to simplify the sound results of the market economy to build a knowledge base for the informal economy and then to redefine these concepts in an alternative model adapted to the context of the ethnic economy”
What is entrepreneurship? And the informal economy?
An entrepreneur is someone that puts in place a project or initiative in an independent way to acquire a revenue.
The informal economy is the ensemble of economic activities of subsistence that generate revenue that operate with little regulation and direct contribution from the actors at the State’s revenue
The basic codes of formal entrepreneurship can be introduced to actors of the informal economy if we carefully simplify their experience of these notions. Just like their homologues of the market economy, informal entrepreneurs have the challenge to find opportunities for their products and services and to improve their sales. This passes by the initiation of an alternative approach (one more time) of marketing to play on the consumer’s confidence, pleasure and wealth among other attitudes. The major challenge here is to find and grow the right target audience or market by applying the right strategies when we agreed to prioritize and to honor the personal project that is inside our Soul and that is detected at the step of the definition Therefore, information recourse (a component that regulates the asymmetries of the market) before the latter (through sensitization and habilitation) is a potential lever to orient the consumer’s attitude in a sense that is profitable to the entire community by facilitating the circulation of money. The definition of this approach aims to finally take into account the informal dynamic as the alternative force and motor of the local economies and not anymore as the proof of incapacity of the concerned states to consider the result of the lower classes and to fully integrate them to the creation of wealth and value. It is amongst others the essence of my work under the model of the Ka Method that will soon be presented in a matter of time…
“The resurgence of an informal economic model should not be ignoring the legacy of concepts from other currents that have long prevailed, but rather offer a market alternative vision to place human beings in the core of the action and the policy of economy. It is the same in terms of identity and spirituality.”
Extract from “Succeeding through the informal way” available on https://www.theleanintention.com/shop