Nonfarm Microenterprise Performance and the Investment Climate : Evidence from Rural Ethiopia

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dc.creatorLoening, Josef
dc.creatorRijkers, Bob
dc.creatorSöderbom, Måns
dc.date2012-05-29T13:42:12Z
dc.date2012-05-29T13:42:12Z
dc.date2008-03
dc.date.accessioned2026-07-01T01:06:36Z
dc.descriptionThis paper uses uniquely matched household, enterprise and community survey data from four major regions in rural Ethiopia to characterize the performance, constraints and opportunities of nonfarm enterprises. The nonfarm enterprise sector is sizeable, particularly important for women, and plays an important role during the low season for agriculture, when alternative job opportunities are limited. Returns to nonfarm enterprise employment are low on average and especially so for female-headed enterprises. Women nevertheless have much higher participation rates than men, which attest to their marginalized position in the labor market. Most enterprises are very small and rely almost exclusively on household members to provide the required labor inputs. Few firms add to their capital stock or increase their labor inputs after startup. Local fluctuations in predicted crop performance affect the performance of nonfarm enterprises, because of the predominant role played by the agricultural sector. Enterprise performance is also affected by the localized nature of sales and limited market integration for nonfarm enterprises. The policy implications of these and other findings are discussed.
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dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2008/03/9161814/nonfarm-microenterprise-performance-investment-climate-evidence-rural-ethiopia
dc.identifierhttps://hdl.handle.net/10986/6506
dc.identifierhttps://doi.org/10.1596/1813-9450-4577
dc.identifier.urihttp://hdl.handle.net/123456789/415281
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper; No. 4577
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectACCESS TO CREDIT
dc.subjectACCESSIBILITY
dc.subjectACCOUNTING
dc.subjectADVERSE IMPACT
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectAGRICULTURAL SECTOR
dc.subjectAGRICULTURE
dc.subjectARBITRAGE
dc.subjectAVAILABILITY OF CREDIT
dc.subjectAVERAGE GROWTH
dc.subjectAVERAGE WAGE
dc.subjectBANK POLICY
dc.subjectBASIC COST
dc.subjectBRIBES
dc.subjectBUSINESS ECONOMICS
dc.subjectCALCULATIONS
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL STOCKS
dc.subjectCASUAL WORKER
dc.subjectCASUAL WORKERS
dc.subjectCOLLATERAL
dc.subjectCOMMUNITY SURVEY
dc.subjectCOMPETITORS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMERS
dc.subjectCONTRIBUTION
dc.subjectCONTRIBUTIONS
dc.subjectCOOPERATIVES
dc.subjectCOST OF LABOR
dc.subjectCREDIT AVAILABILITY
dc.subjectCREDIT CONSTRAINTS
dc.subjectDAILY WAGE
dc.subjectDAILY WAGES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDIVERSIFICATION
dc.subjectDIVERSIFICATION STRATEGIES
dc.subjectDROUGHT
dc.subjectDROUGHTS
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectEARNINGS
dc.subjectECONOMETRICS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GEOGRAPHY
dc.subjectECONOMIC INTEGRATION
dc.subjectEDUCATIONAL ATTAINMENT
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectENTERPRISE GROWTH
dc.subjectENTERPRISE PERFORMANCE
dc.subjectENTERPRISE SIZE
dc.subjectENTREPRENEURS
dc.subjectENTREPRENEURSHIP
dc.subjectEQUIPMENT
dc.subjectEXCHANGE RATE
dc.subjectEXPANSION
dc.subjectEXPENDITURE
dc.subjectEXTRA CASH
dc.subjectFARM ENTERPRISE
dc.subjectFINANCIAL CAPACITY
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL POSITION
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SUPPORT
dc.subjectFIRM PERFORMANCE
dc.subjectFIRM SIZE
dc.subjectFOOD SHORTAGE
dc.subjectFORMAL BANKS
dc.subjectFORMAL CREDIT
dc.subjectGENDER
dc.subjectGENDER BIASES
dc.subjectGENDER GAP
dc.subjectHOLDING
dc.subjectHOUSEHOLD EXPENDITURE
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLDS
dc.subjectINCOME EFFECT
dc.subjectINDUSTRIAL ECONOMICS
dc.subjectINFORMATION GAP
dc.subjectINITIAL CAPITAL
dc.subjectINTERNATIONAL BANK
dc.subjectINVESTING
dc.subjectINVESTMENT BEHAVIOR
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT CLIMATE ASSESSMENT
dc.subjectINVESTMENT FINANCE
dc.subjectINVESTMENT SPENDING
dc.subjectJOB LOSS
dc.subjectJOB OPPORTUNITIES
dc.subjectKNOWLEDGE GAP
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLARGE ENTERPRISES
dc.subjectLARGE FIRMS
dc.subjectLENDERS
dc.subjectLIQUIDITY
dc.subjectLOCAL FINANCIAL INSTITUTION
dc.subjectLOCAL MARKET
dc.subjectLOW COST
dc.subjectMARKET INTEGRATION
dc.subjectMARKETING
dc.subjectMICRO-ENTERPRISES
dc.subjectMICRO-FINANCE
dc.subjectMICROENTERPRISES
dc.subjectOPERATING COST
dc.subjectOPERATING COSTS
dc.subjectOPPORTUNITY COST
dc.subjectPEOPLES
dc.subjectPERMANENT WORKER
dc.subjectPERMANENT WORKERS
dc.subjectPOOR ACCESS
dc.subjectPOOR INVESTMENT
dc.subjectPRIVATE ENTREPRENEURS
dc.subjectPROBABILITIES
dc.subjectPROBABILITY
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVITY
dc.subjectPROFITABILITY
dc.subjectPROVIDERS OF CREDIT
dc.subjectQUESTIONNAIRE
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectSALE
dc.subjectSALES
dc.subjectSALES GROWTH
dc.subjectSHOP
dc.subjectSHOPS
dc.subjectSMALL BUSINESS
dc.subjectSMALL ENTERPRISE
dc.subjectSMALL ENTERPRISES
dc.subjectSMALL FIRM
dc.subjectSMALL FIRMS
dc.subjectSOURCE OF INCOME
dc.subjectSTART-UP
dc.subjectSUBSTITUTION EFFECT
dc.subjectSUNK COSTS
dc.subjectTELECOMMUNICATIONS
dc.subjectTRADE SECTOR
dc.subjectTRADING
dc.subjectTRANSITION ECONOMIES
dc.subjectTYPES OF LENDERS
dc.subjectVALUE ADDED
dc.subjectVILLAGE
dc.subjectVILLAGES
dc.subjectWAGE
dc.subjectWAGE RATES
dc.subjectWOMAN
dc.titleNonfarm Microenterprise Performance and the Investment Climate : Evidence from Rural Ethiopia

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