The influence of institutional forces on the formalization of artisan entrepreneurship in Egypt

Abstract

Purpose This study aims to examine how artisan entrepreneurs develop motivation to formalize their informal businesses. Design/methodology/approach This is a qualitative study where data was collected using semi-structured interviews with 40 owners and co-owners of artisanal ventures operating in Egypt. Findings The findings identify three key drivers for formalizing existing informal artisanal enterprises in Egypt: Institutional drivers (the need for artisanal hubs, promoting international visibility), Operational drivers (access to government loans, digital access for artisans, expanding market reach) and Developmental drivers (customized artisan education, enhancing artisan prestige). Originality/value This study contributes to understanding artisan entrepreneurship in Egypt, addressing a gap in MENA-focused research (Mousa et al., 2025a; Mousa et al., 2024a). By examining institutional challenges, it extends Institutional Theory, highlighting the tension between entrepreneurial ambitions and structural barriers. This study also identifies the benefits of formal registration and mechanisms for formalizing informal artisanal activities, offering practical guidance for policymakers (Mousa and Szczepańska-Woszczyna, 2025). Formalizing these activities could boost national economic performance and artisan productivity, providing a framework applicable to similar African contexts.

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