This research aims to investigate the extent to which personal characteristics of informal entrepreneurs shape their decisions to transition into formal business status. A qualitative research strategy was adopted, applying a multicase study design. The study involved 28 informal entrepreneurs operating in Kampala, Uganda. Data were gathered through semi-structured interview guides, audio recording devices, and field notebooks. The results show that informal and semi-formal entrepreneurs differ markedly in their personality attributes. Informal entrepreneurs tend to demonstrate higher levels of bravery and persistence, whereas semi-formal entrepreneurs are more strongly driven by passion for their enterprises. Consequently, semi-formal entrepreneurs appear more likely to pursue formalization than informal ones. Those willing to formalize often face obstacles such as geographic distance, technological limitations, and the financial burden of using intermediaries. Resilient entrepreneurs tend to overcome these constraints, whereas less proactive individuals in both categories typically avoid formalization, often rationalizing their inaction through these barriers. This study advances the literature on informal entrepreneurship by presenting early empirical insights into how entrepreneurs’ personal characteristics specifically shape their decisions to formalize their ventures.
