Abstract
This chapter extends research examining economies in which SMEs operate. We propose the presence of the mongrel economy (i.e., comprised of legal but illegitimate businesses). We discuss implications of this economy and its similarities and differences from the formal and informal economies proposed by Webb et al. (2009). In this conceptual chapter, we investigate how SMEs are connected to the mongrel economy and how constituent associations can be used as low-cost legitimacy tools (Austin et al., 2006; Murphy et al., 2007). Other forms of economies are discussed to provide clarity on how various economies operate, thus contrasting economies to illustrate their differences. Future directions of research related to the informal and mongrel economies are provided. Additionally, specific opportunities for SMEs in the mongrel economy are presented.