Re-Examining Transitions to Adulthood among Young People Engaged in Informal Businesses in the City of Accra, Ghana

Abstract

Using a longitudinal qualitative methodological approach, the study observed the life course and businesses of young people in the city of Accra over the period 2010 to 2023. The study explores the extent to which business engagement in the informal economy among young people contributes to their transitions into adulthood, and the sustainability of these transition gains. Initial observations demonstrated that, many of the young people were able to achieve transition gains, such as, financial independence, afford rental accommodation, provision of support for family and external relations while some were able to enter into marital and cohabiting relationships. However, the sustainability of these transition gains were challenged over time by factors such as poor business performance, difficult economic conditions and the COVID-19 pandemic. The study concludes by calling for financial and advisory support to reinvigorate the businesses and sustain the transitions achieved in the life course of the young people.

1. Introduction

Young people in many countries across the globe are confronted with several challenges including unemployment and attaining the status of adulthood [1, 2]. Across the African continent, improvement in economic performance over the past few decades have not been accompanied by improvements in employment opportunities for young people and this has affected the transitions of young people into adulthood. The employment situation confronting young people and the challenges in attaining the status of adulthood have been observed in the global North [3] and South as well [4]. However, the challenge is noted to be more pronounced in the global South compared to the North [5].

The challenges confronting the young people especially in Africa have made some scholars to cast various aspersions about their conditions and futures. Ref. [6] for instance, have described the African youth as a group deprived of resources and stuck in a situation of perpetual waiting. Although frustrated with unemployment and transition challenges, the young people are not just a passive group who do nothing about their situation. Many do engage in several activities as a means of survival. Within the African continent for instance, the young people in an attempt to overtime the challenge of unemployment and making gains in social mobility do engage themselves in several informal economy activities, albeit with the prime objective of earning a living. One of the key sectors within the informal space that have engaged many of the young people in Africa over the past two decades is the rapidly changing mobile telephony sector. Many of the young people do indulge in informal support services of the mobile telephony sector including mobile money services and airtime, the sale of mobile phones and accessories, mobile phone repairs and other services such as transfer of music, and recharging of mobile phone batteries.

Although significant attention have been given to young people involved in informal businesses in Africa [4, 7, 8], very little is known about the benefits young people involved in informal businesses in Africa in particular derive from their engagement in these businesses, and more importantly, the extent to which informal business engagement among the youth contribute to their transitions into the assumption of adult roles or responsibilities. However, an exception is [4] who observed the business influence in the transitions of a group of young people over the period 2010–2017, and observed that engagement in the informal business contributes the young people enjoying financial independence, afford rental accommodation, provide support for family members, and establish and sustain households. What we do not know is the sustainability of these transition gains as a result of the youth engagement in the informal economy. It is in light of the above that this chapter explores the sustainability of young people’s transitions using young people involved in the informal mobile telephony sector in the city of Accra as a case study. What is the current state of transitions among young people involved in business in the informal economy? How sustainable are transition gains among young people? An exploration of young people’s transition gains and the sustainability of these transitions will contribute to the growing body of literature, which have called for policy support for young people involved in informal businesses generally, and the returns from business in the transitions of young in the global South and Africa to be precise.

2. Young people, transitions to adulthood and business engagement: a theoretical perspective

The United Nations defined the concept “youth” to constitute the age group 15 to 25 years, but this definition is different from that of the National Youth Policy of Ghana which defines youth to include the age group 15–35 years [9], similar to the definition of the African Youth Charter [10]. In the literature however, the terms “youth” and “young people” are frequently used interchangeably to refer to the same group [11], and we do likewise in this chapter. However, in order to get a greater understanding of young people’s transitions and their lived experiences with a focus on the rights, duties, and responsibilities that they assume, youth is approached from a life course perspective. Young people who successfully take on these obligations and roles are considered to have acquired adulthood.

Early studies on young people’s transitions into adulthood especially within the global North was defined as a process marked by a series of life events [12]. Thus, transitions were seen in the context of school-to-work where young people are expected to complete full-time education and begin work that will lead to attainment of economic independence. Transitions to adulthood were also defined in the context of household and family formation, which involves young people leaving parental home, forming a union – cohabitation or marriage, and becoming a parent. Overtime, transitions in many parts of the world have been observed not be a linear course. Rather, transitions have been observed to be late whereby events in the life course of young people tend to be delayed or postponed. In other instances, transitions to adulthood have protracted and have become complex at times [13].

Transitions to adulthood have also been observed in the context of personality development leading to the introduction of concepts such as emerging adulthood which constitutes the phase of life between adolescence and full-fledge adulthood with distinctive demographic, social, and psychological features [14, 15]. Emerging adults frequently examine a number of potential life directions in terms of love, employment, and worldviews since they have left the reliance of childhood and adolescence but have not yet accepted the enduring responsibilities that are normative in adulthood [16].

In the global South and in many parts of the African continent, transitions of young people into adulthood in the late 20th Century have been described as ‘waithood’ where many young people find themselves in perpetual state of waiting for a future that is becoming elusive [17]. The envisioned better lives of the young people in Africa for the future through work, education or migration have not materialised. The situation of waiting has also been worsened by the introduction of structural adjustment and neoliberal policy reforms which have worsened inequality, poverty, unequal access to resources and marginalisation with young people among the worst hit [18].

Consequently, the youth in Africa have experienced frustration, disillusion, despair or apathy and many of these experiences are becoming a way of life for many. The current experiences of the youth have led to several depictions in the literature. According to [19], the current generation of African adolescents is one that was born into social environments where chances of leading respectable lives are slim, with many of them ending up locked in situations of inadequacy with limited opportunities and dim prospects. [20] portrayed the youth in Africa as being “stuck” between childhood and adulthood, a situation described in equal measure as “waithood” [21, 22]. Waithood depicts the involuntarily prolonged adolescence of especially urban youth who are dealing with issues of poverty, unemployment, access to education, and more generally, social and political marginalisation [21, 22]. The young people are mostly deprived of resources required for attaining social adulthood (i.e. financial independence, marriage, family, household formation etc.) which leaves the youth in a perpetual state of waiting and this contributes to a feeling of dullness, frustration and indignity [6].

Despite the various characterisations of youth lives, there is a contrary perspective which points to the fact that the youth do engage in several activities in the process of waiting. The youth while waiting are noted to build relationships while engaging themselves in self-employment with many going into business activities in the informal economy [4, 23]. The informal economy has been observed as a provider of employment of last resort for many including young people [24]. Despite its significance, however, very little in terms of empirical research has explored the gains from the sector for many of the young people who continue to venture into various kinds of businesses in the sector. Additionally, the empirical literature has also not given attention to the influence of business engagement in the transitions of young people into adulthood, and more importantly, the sustainability of these transitions. What is the current state of transitions into adulthood among young people? To what extent does young people’s informal business engagements influence their transitions to adulthood? How sustainable are the transitions of young people involved in business in the informal economy in the city of Accra? By exploring these questions, the chapter aims to contribute in filling the knowledge gaps in the transitions of young people involved in businesses in the informal economy in the developing country city context while contributing to the youth transitions literature in Ghana and the African continent as a whole.

3. Methodology

The study utilised longitudinal qualitative methodological approach involving the use of life trajectory observations and biographical interviews conducted with young people involved in informal businesses in the mobile telephony sector over the period 2010 to 2023. Following an initial mapping exercise in the city of Accra in 2010, the lives and businesses of 11 young people operating various informal mobile phone businesses were tracked through repeated interviews over the period 2010–2013. Additionally, biographical interviews were conducted with 25 young people also involved in informal businesses in the mobile telephony sector such as mobile money and airtime services, the sale of mobile phones and accessories, mobile phone repairs and other services such as transfer of music, and recharging of mobile phone batteries. The interviews focussed on the young people’s life course with particular attention given to how the businesses have changed over time and the key resources they have drawn on to sustain their businesses over the years and the gains in businesses in the transitions of the young people into adulthood. The ages of the young people ranged from 21 to 33 years with an average age of 25 at the time.

After a gap of 5 years, we revisited the young people and conducted repeat biographical interviews with 28 of them out of which 8 were females. The repeat interviews focused on similar issues earlier highlighted such as the life course and business, resources for business and the influence of business in the transitions of the young people into adulthood. In 2023, we revisited the young people and were able to conduct biographical interviews with 11 with three being females. The interviews focussed on discovering how the life course of the young people have evolved in over a decade, the current state of their businesses, the key resources they were drawing upon, and how gains in transitions reported in earlier rounds of interview have been sustained over the period.

With the over 10 years of rapport built with the respondents over the years, the latest round of interviews were conducted on the phone, and audio-recorded with the informed consent of respondents. The audio-recordings were transcribed verbatim and several readings of the data were done after which a manual analysis of the data was conducted leading to the determination of codes and themes, which in addition to data from preceding round of interviews constituted the analytical core of this chapter.

4. Sustainability of young people’s transitions

Evidence from the repeated interviews with the young people conducted from 2010 to 2017 pointed to five thematic areas where the young people identified to have made transition gains as a result of their engagement in business in the mobile telephony sector. These themes include financial independence, support for family and social relations, ability to rent residential accommodation, marriage, and acquisition of land. We explore current state and sustainability of these transition gains in the life course of the young people as follows.

4.1 Financial independence

Although financial independence is noted as one of the most significant markers of young people’s transitions into adulthood [4, 25], achieving financial independence has always proven difficult for many [26]. However, our interactions with young people involved in business in the mobile telephony sector over the period 2010 to 2017 have proven that they were able to achieve financial independence, and the achievement of financial independence among the young people cut across various business types and by gender. A typical instance, which reflects many of the cases is that of John who noted that, “This business has helped me … as I can say that I now have financial independence.” Commenting on his status of achieving financing independence in 2017, Steve noted that, “I see a very bright future for myself, if I’m able to manage this business well. Everything is looking bright for me.” Notwithstanding the positive responses from the young people regarding their business engagement in the transitions to financial independence, when we interviewed them again in 2023, the situation has completely changed. According to Steve, “After COVID, my business has never been the same. I do not make enough money as I used to”. When we interviewed John in 2023 to further explore the current status of his financial independence which he alluded to be enjoying, he noted that, “I cannot say that I have enjoyed financial independence over the past few years as business has not been very good.” Grace, commenting on her current status of financial independence observed as follows:

In the early days of the mobile money business, the business was good and I made a lot of profit, but now it is common and it is difficult to make so much profit from the business. I cannot say I’m independent, financially.

As captured in the narrative of Grace, there is keen competition in the informal mobile business space currently and this has reduced the profit margin for many operatives. The intense competition can be attributed to the low capital requirement for start-up for some of the businesses (for example, mobile money and airtime services) which has made it possible for many to enter the business space. With the increased number of young people starting businesses in the sector, many of the young people recently interviewed alluded that sales per person has reduced and hence profitability. With reduced profit margins, as observed in many of the narratives, it becomes difficult for the young people to sustain the financial independence which they alluded to be enjoying during the last round of interviews in 2017.

When asked about the state of financial independence, Esi who has been involved in mobile money business over the years noted that, “Oh not that much, something small now that the mobile money business has become common.” The response of Esi, similar to that of Grace is reflective of many of the young people who complained about the increased number of people who have ventured into the mobile telephony sector with the view to earning a living, and thereby reducing the profitability and financial independence of the young people involved in business in the sector. The profitability of businesses and the transition gains in the mobile telephony sector and the informal economy as a whole is therefore linked to performance of the young people’s businesses. During periods when the business is experiencing a good turn in performance, financial independence of the young people as observed tends to be stronger and vice versa. It is therefore difficult to argue that the young people are enjoying a sustained transitions into the status of financial independence as a result of their engagement in business in the mobile telephony sector.

4.2 Marriage and family sustenance

Some of the young people in earlier round of interviews before 2017 had indicated that one of the greatest benefits from running their businesses is the fact that they have been able to regularise their marriages. Others are cohabiting but most of the young people indicated that were able to offer the needed support in these relationships. A typical example is Florence, who observed that, “Through this business, I’m able to offer support to my husband … in the payment of our children’s school fees.” When we interviewed Florence again in 2023 about the support she is providing in her marital relationship, she pointed out the capital boost she needs to sustain her business to be able to play her supportive role in her marriage.

I’ve three children now and I use proceeds from this business in taking care of them. I need money to sustain the business. The more capital I invest into the business, the better the profit for me and the better the support I can give to my family but things are difficult now. (Florence, 26 years old mobile money vender).

From the narratives, supporting in relationships is important for many of the young people although sustaining this support has at times proved challenging. The reason being that at times the business is not thriving, and the gains from the business is not enough or do not come at all. This makes it difficult for the young people to be able to offer the required support in their relationship. The way out as many alluded is to inject a bit more capital into the business.

Although the narratives indicate that the businesses of the young people are not performing well, many saw the need for capital injection into the businesses to enable them make more gains and sustains the transitions including marital sustenance, which they have assumed. It is therefore important to note that even though the young people have transitioned into marital or cohabiting relationships, their gains need to be sustained which calls for the businesses to flourish. Sustainability of the businesses which is very much linked to the sustainability of the young people’s transition gains depends on the reinvestment into the businesses as well as favourable economic conditions in the country. In the words of Peter in the recent round of interviews, “The more sales I make, the better the profitability from my business and the more I’ll be able to do for my family.” The young people therefore continue to look out for opportunities to reinvest into the businesses. Other factors which have affected the sustainability of businesses and the support that the young people offer in their relationships including marriage is the difficult economic conditions over the past few years. Supporting arguments regarding the difficult economic conditions in the country which is adversely affecting businesses and transitions generally, Frank, a 38-year-old who deals in the sale of mobile phones stated as follows:

Things have become difficult in the country and you need big capital to sustain your business. At times, you make sales but you cannot use the returns to buy items into your shop because prices of items have gone up significantly.

Like many of the narratives, Peter’s demonstrates that the capital base of the business of the young people is being eroded by high rates of inflation which threaten their businesses and sustainability of the any transition gains that have been achieved. A way out of the difficult economic conditions for many of the young people is the need to reinvest into the businesses, which many are doing or looking out for avenues to do in order to sustain the transition gains of supporting their marriages and other cohabiting relationships.

4.3 Support for family relations

Many of the young people, in the last round of interviews indicated that as a result of their engagement in informal businesses in the mobile telephony sector, they were able to offer support to their family relations which hitherto was not a possibility. This support comes in many forms including financial assistance to family relations and assisting in the payment of school fees for young siblings. This support was unlike what is dominant in the youth literature where young people are portrayed as recipients of assistance from familial relations [1, 27]. The support for family relations as observed cut across the various business groups and by gender where both young males and females were observed to be assisting family relations. In the recent round of interviews however, it was observed that this support has substantially reduced as the narratives indicate:

I used to save money in the course of the year and during Christmas, I purchase food items and share with my relatives, but now, I’m unable to do that. I only support a niece of mine at the moment. Conditions are difficult now, and I can no longer support the people I was supporting. (Ryn, 34-year old phone dealer).

Similar to Ryn’s narrative, Florence, who runs a mobile money service noted that, “I have to adjust to the living conditions. It is unlike previous days when I could easily give out support to relations.” The narratives show that the young people are unable to support as many relations as they used to do and this they attributed to the difficult business terrain in recent times. As captured by the narrative of Ryn above, many of the young people have to introduce readjustments in the way they support their relations which means that support in most instances is reduced. Despite the difficult period however, the young people indicated that they have not cut off support to relations entirely, but rather, support within their network of relations have been reduced in accordance with the new realities confronting them and their businesses.

4.4 Ability to rent accommodation

In the previous round of interviews, many of the young people studied indicated that they have gone through challenges with accommodation previously, however, they have been able to rent accommodation where they were staying while a few indicated that they are developing a place of their own. When we interviewed them again in 2023, many of the young people indicated that they are still able to rent despite the difficulties that the businesses are currently going through. Esi who is into mobile money services indicated in 2017 that, “… for four years now since I started this business, I have been able to rent a room where I stay with my two children.” When we interviewed her in 2023, Esi, like many of the young people further stated that, “I am still renting but the business is not going well.” What this means is that for many of the young people, the ability to rent, just like other transition gains that the young people indicated they have achieved over the years is tied to the success of the businesses. More so, because of the critical nature of accommodation to many young people, even if the business is not thriving, they still need to channel however little gains they are making from their businesses into getting themselves a decent accommodation that they are occupying. Thus, although many of the young people spoke about the difficulties confronting their businesses, many have been able to sustain the gains of rental accommodation due to the significance with which they attach to the need for accommodation.

5. Conclusions

With difficulties in securing employment among young people across the African constituent and consequent challenges in making gains in transitions to adulthood and social mobility, some have ventured into informal enterprise activities in the mobile telephony sector [4]. These informal businesses initially appear to have secured many of these young people in the city of Accra an avenue where they were able to make some gains in their transitions into the assumption of some adult responsibilities as a result of stable income flows from their businesses. Although these jobs have provided avenues where the young people are able to secure livelihoods, the findings points to a strong link between the performance of the informal businesses of the young people and their transitions into adulthood, and more importantly the sustainability of any transition gains on the part of the young people studied. The difficult economic conditions in addition to the lack of finance for reinvestments that will reinvigorate the businesses and the transitions of the young people came out strongly among the greatest challenges to the sustainability of transitions to adulthood among the young people studied. The lack of finance for young people’s businesses and the difficult economic conditions have been observed among the greatest challenges confronting businesses of young people in Africa [28, 29]. The constraints in the businesses of the young people as identified have implications on their transitions and sustainability of any transition gains achieved over the years.

The findings of the study also revealed the adverse effects of the COVID-19 pandemic on the businesses of young people, and sustainability of any transition gains among young people. The devastating effects of the COVID-19 on the businesses of young people have been observed in many countries across the African continent [30, 31]. Specifically, the COVID-19 pandemic has brought about the situation where many small and informal businesses have experienced price fluctuations, production uncertainty and business discontinuity or unsustainability [30], while others are confronted with the challenge of raising resources for recapitalisation of their businesses [31]. The findings of the study confirms these challenges, in addition to the constraints which these challenges poses to the transitions and sustainability of any transition gains achieved by young people.

The informal businesses, and most especially the performance of the businesses, are important in the transitions to adulthood among the young people. However, any transition gains as observed need to be sustained in order to make a worthwhile experience in the life course of the young people. Considering the challenges of finance, the COVID-19 pandemic and general economic decline and their effects on the businesses of the young people studied, support in the form of financial assistance and technical advice are therefore very much needed to propel the businesses of the young people to greater heights.

Disclosure statement

No potential conflict of interest was reported by the authors.