Entry, speed and degree of formality for household businesses: an integrated approach

Abstract

Purpose This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level. Design/methodology/approach The data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period. Findings This study elucidates how firm-level resources, entrepreneur characteristics and costs of doing business influence an entrepreneur’s decision to enter, the speed and the degree of formality. Originality/value This study provides insight into the origins of an entrepreneur’s decisions to the multidimensions of business formality through the lenses of the resource-based view, entrepreneurship and institution theories.