Effects of resource bootstrapping and bricolage strategies on financial performance of grocery retailers in india

Abstract

The informal enterprises had been brought into the scope of national economy by adding it into System of National accounts by the International Labour Organization (ILO) and henceforth, the attempts to measure the newlineinformal activities and the analysis of performance of informal enterprises newlinebecame an interesting topic for researchers and analysts. The constraints in newlineanalysing the performance of informal enterprises are, liability of smallness, newlineinformation asymmetry and inconsistency. Trading, agriculture, and production newlineof generic as well as traditional products are the main occupations in the newlineinformal sector. As the trading is a continuous and consistent process, the newlineresearcher chose the traders are chosen as the population for analysing the newlineResource Bootstrapping strategies of informal sector. The respondents of this newlineresearch include both informal and formal grocery retailers in Coimbatore newlinedistrict. Hence, the effect of resource bootstrapping strategies on performances newlineof both informal and formal retailers are compared using the same parameters, newlinemethods, and standards to investigate the gap in performance and strategies. newlineOne of main challenges that informal retailers face is the funds constrain. The financial institutions are reluctant to extent their support to informal entrepreneurs due to, the lack of collateral, liability of smallness,inconsistency, lack of expertise and technology, and information asymmetry. Hence, they are compelled to depend on alternate resources or sources ofresources, especially for fund. Hence, they are compelled to adopt resource bootstrapping and bricolage strategies comprising of, finding alternate low-cost fund resources, postponement of investment, substitute the expensive resource with low cost resources, and manage the resource need with what is readily available. newline newline