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

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.


Productivity dispersal – by region and distance.
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f0015: Productivity dispersal – by region and distance.

Mentions: Fig. 3a confirms our expectations. Kampala reports the highest labor productivity, with the Central region following in terms of productivity level. The Northern region, with the lowest population density and a history of conflict, is home to the enterprises with the lowest productivity.


Non-farm entrepreneurship in rural sub-Saharan Africa: New empirical evidence
Productivity dispersal – by region and distance.
© Copyright Policy - CC BY
Related In: Results  -  Collection

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

f0015: Productivity dispersal – by region and distance.
Mentions: Fig. 3a confirms our expectations. Kampala reports the highest labor productivity, with the Central region following in terms of productivity level. The Northern region, with the lowest population density and a history of conflict, is home to the enterprises with the lowest productivity.

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.