Many researchers have investigated the phenomenon of the informal economy and rec-ommended impractical interventions such as controlling the informal economy or formalizing it. However, most research has missed another strategy for helping the informal economy, which involves achieving legitimacy. This study uses unique data from a Jordanian government organi-zation named IRADA designed to help small, home-based businesses. Data on 345 home-based businesses representing a range of poor areas across Jordan provide a case study of IRADA's strategies to help home-based businesses succeed and to contribute to legitimate informal econo-mies in these areas. Logistic regression analysis reveals how marketing and specialized training are important for the success of home-based businesses. Findings suggest that IRADA's unique approach to legitimating home-based businesses in an innovative way represents a set of best practices for the informal economy field. They also suggest that IRADA's approach may be applied in contexts other than Jordan to help enhance the informal economy and make it tractable without formalizing it.
College and Department
Family, Home, and Social Sciences; Sociology
BYU ScholarsArchive Citation
Al Attar, Zaid Hussein, "A Case Study of IRADA: Its Impact on the Development and Enhancing the Legitimacy of Home-Based Businesses in Key Poverty Areas in Jordan" (2015). Theses and Dissertations. 5482.
informal economy, legitimacy, entrepreneurship, home-based business