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Non-farm entrepreneurship in rural sub-Saharan Africa: New empirical evidence

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ABSTRACT

We report on the prevalence and patterns of non-farm enterprises in six sub-Saharan African countries, and study their performance in terms of labor productivity, survival and exit, using the World Bank’s Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA). Rural households operate enterprises due to both push and pull factors and tend to do so predominantly in easy-to-enter activities, such as sales and trade, rather than in activities that require higher starting costs, such as transport services, or educational investment, such as professional services. Labor productivity differs widely: rural and female-headed enterprises, those located further away from population centers, and businesses that operate intermittently have lower levels of labor productivity compared to urban and male-owned enterprises, or enterprises that operate throughout the year. Finally, rural enterprises exit the market primarily due to a lack of profitability or finance, and due to idiosyncratic shocks.

No MeSH data available.


Productivity dispersal – by location. Note(s): In (a) and (b) the continuous lines represent the productivity of rural enterprises and the dotted lines the productivity of urban enterprises. Malawi (1) shows the productivity measure using profit in the numerator, and Malawi (2) additionally makes use of time-use information of workers in the denominator.
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f0050: Productivity dispersal – by location. Note(s): In (a) and (b) the continuous lines represent the productivity of rural enterprises and the dotted lines the productivity of urban enterprises. Malawi (1) shows the productivity measure using profit in the numerator, and Malawi (2) additionally makes use of time-use information of workers in the denominator.

Mentions: These figures present the kernel density estimates of an alternate and more precise measure of productivity that is possible to calculate for Malawi. In Fig. 10Fig. 10


Non-farm entrepreneurship in rural sub-Saharan Africa: New empirical evidence
Productivity dispersal – by location. Note(s): In (a) and (b) the continuous lines represent the productivity of rural enterprises and the dotted lines the productivity of urban enterprises. Malawi (1) shows the productivity measure using profit in the numerator, and Malawi (2) additionally makes use of time-use information of workers in the denominator.
© Copyright Policy - CC BY
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC5384454&req=5

f0050: Productivity dispersal – by location. Note(s): In (a) and (b) the continuous lines represent the productivity of rural enterprises and the dotted lines the productivity of urban enterprises. Malawi (1) shows the productivity measure using profit in the numerator, and Malawi (2) additionally makes use of time-use information of workers in the denominator.
Mentions: These figures present the kernel density estimates of an alternate and more precise measure of productivity that is possible to calculate for Malawi. In Fig. 10Fig. 10

View Article: PubMed Central - PubMed

ABSTRACT

We report on the prevalence and patterns of non-farm enterprises in six sub-Saharan African countries, and study their performance in terms of labor productivity, survival and exit, using the World Bank’s Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA). Rural households operate enterprises due to both push and pull factors and tend to do so predominantly in easy-to-enter activities, such as sales and trade, rather than in activities that require higher starting costs, such as transport services, or educational investment, such as professional services. Labor productivity differs widely: rural and female-headed enterprises, those located further away from population centers, and businesses that operate intermittently have lower levels of labor productivity compared to urban and male-owned enterprises, or enterprises that operate throughout the year. Finally, rural enterprises exit the market primarily due to a lack of profitability or finance, and due to idiosyncratic shocks.

No MeSH data available.