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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.


Months in operation. Note(s): Malawi not reported due to a lack of data. Enterprises that are less than one year in operation are excluded. Rural areas only.
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f0020: Months in operation. Note(s): Malawi not reported due to a lack of data. Enterprises that are less than one year in operation are excluded. Rural areas only.

Mentions: To start the analysis, we account for possible seasonality patterns in the operation of enterprises. The LSMS-ISA data captures the number of months per year a rural enterprise was operating in the year preceding the survey. Fig. 4 shows that a significant proportion was operating for less than 6 or 12 months per year. Between 42 and 64 percent of all enterprises operate continuously during the whole year, with the highest percentage found in Nigeria.


Non-farm entrepreneurship in rural sub-Saharan Africa: New empirical evidence
Months in operation. Note(s): Malawi not reported due to a lack of data. Enterprises that are less than one year in operation are excluded. Rural areas only.
© Copyright Policy - CC BY
Related In: Results  -  Collection

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

f0020: Months in operation. Note(s): Malawi not reported due to a lack of data. Enterprises that are less than one year in operation are excluded. Rural areas only.
Mentions: To start the analysis, we account for possible seasonality patterns in the operation of enterprises. The LSMS-ISA data captures the number of months per year a rural enterprise was operating in the year preceding the survey. Fig. 4 shows that a significant proportion was operating for less than 6 or 12 months per year. Between 42 and 64 percent of all enterprises operate continuously during the whole year, with the highest percentage found in Nigeria.

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.