Household Enterprises in Sub-Saharan Africa : Why They Matter for Growth, Jobs, and Livelihoods
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World Bank, Washington, DC
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Despite 40 percent of households relying
on household enterprises (non-farm enterprises operated by a
single individual or with the help of family members) as an
income source, household enterprises are usually ignored in
low-income Sub-Saharan-African development strategies. Yet
analysis of eight countries shows that although the fast
growing economies generated new private non-farm wage jobs
at high rates, household enterprises generated most new jobs
outside agriculture. Owing to the small size of the non-farm
wage job sector, this trend is expected to continue for the
foreseeable future. This analysis of enterprises and their
owners shows that although it is a heterogeneous sector
within countries, there are many similarities across
countries, indicating that cross-country learning is
possible. For labor force participants who want to use their
skills and energy to create a non-farm income source for
themselves and their families, household enterprises offer a
good opportunity even if they remain small. The paper finds
that given household human capital and location, household
enterprise earnings have the same marginal effect on
consumption as private wage and salary employment. The
authors argue that household enterprises should be seen as
part of an integrated job and development strategy.
Palabras clave
AGE GROUP, AGRICULTURAL ECONOMY, AGRICULTURAL EMPLOYMENT, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, AGRICULTURAL WAGE, ANTI-POVERTY, AVERAGE WAGE, BANKS, BORROWING, CAPITAL INVESTMENT, CROWDING OUT, DEBT, DEBT CRISIS, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICIES, DEVELOPMENT POLICY, DEVELOPMENT STRATEGIES, EARNING, EARNINGS REGRESSION, EARNINGS REGRESSIONS, ECONOMIC GROWTH, EDUCATIONAL DISTRIBUTION, EDUCATIONAL OPPORTUNITIES, EFFECTIVE POLICIES, ELDERLY, EMERGENCIES, EMPLOYMENT, EMPLOYMENT GROWTH, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT SOURCE, EMPLOYMENT STATUS, EMPLOYMENT STRATEGIES, EMPLOYMENT TRENDS, ENTREPRENEURSHIP, FAMILY MEMBERS, FAMILY SUPPORT, FARM ACTIVITIES, FARM ACTIVITY, FARM INCOME, FARM PRODUCTION, FARM SELF-EMPLOYMENT, FARMERS, FEMALE ENTREPRENEURS, FINANCIAL SERVICES, FOOD POLICY, FOOD SECURITY, FORMAL EDUCATION, FUTURE LABOR, GENDER GAP, GENDER INEQUITIES, HIGH WAGES, HOUSEHOLD ASSETS, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD CHORES, HOUSEHOLD CONSUMPTION, HOUSEHOLD DEMOGRAPHICS, HOUSEHOLD ENTERPRISE, HOUSEHOLD ENTERPRISES, HOUSEHOLD INCOME, HOUSEHOLD NEEDS, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HUMAN CAPITAL, INCOME DYNAMICS, INCOME EARNING, INCOME GROWTH, INCOME SMOOTHING, INCOME-GENERATING ACTIVITIES, INFORMAL ECONOMY, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INNOVATION, IRRIGATION, JOB CREATION, JOB LOSS, JOBS, LABOR DEMAND, LABOR FORCE, LABOR FORCE GROWTH, LABOR MARKET, LABOR MARKETS, LABOR PRODUCTIVITY, LABOUR, LABOUR MARKET, LEGAL STATUS, LEGISLATION, LEVEL OF EDUCATION, LEVELS OF EDUCATION, LOCAL AUTHORITIES, LOCAL GOVERNMENTS, LOCAL INFRASTRUCTURE, LOW-INCOME COUNTRIES, MARKET FAILURES, MICROFINANCE, MIGRANT, MIGRANTS, MIGRATION, MINORITY, MODERNIZATION, MOTIVATION, MUNICIPAL AUTHORITIES, NATIONAL DEVELOPMENT, NATIONAL LEGISLATION, NATURAL RESOURCES, NEW ENTRANTS, NON-FARM EMPLOYMENT, NON-FARM SECTOR, NONFARM INCOME, NUMBER OF CHILDREN, NUMBER OF HOUSEHOLDS, NUMBER OF PEOPLE, OCCUPATIONS, POLICY CHANGE, POLICY DISCUSSIONS, POLICY IMPLICATIONS, POLICY MAKERS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLL TAXES, POOR HOUSEHOLDS, POVERTY LINE, POVERTY PROGRAMS, POVERTY REDUCTION, POVERTY REDUCTION STRATEGIES, PRIMARY EDUCATION, PRIMARY REASON, PRIMARY SCHOOL, PRIVATE ENTERPRISE, PRIVATE SECTOR, PRIVATE SECTOR JOBS, PRIVATE SECTOR WAGE, PRODUCTIVE WORK, PROGRESS, PULL FACTOR, PUSH FACTORS, REMOTE LOCATIONS, RESPECT, RETAIL TRADE, RICHER COUNTRIES, RISK MANAGEMENT, RULE OF LAW, RURAL, RURAL AREAS, RURAL CREDIT, RURAL DEVELOPMENT, RURAL ECONOMY, RURAL HOUSEHOLD, RURAL INCOME, RURAL INVESTMENT, RURAL LIVELIHOODS, RURAL POVERTY, RURAL TRANSFORMATION, RURAL YOUTH, SAVINGS, SECONDARY EDUCATION, SECONDARY SCHOOL, SECONDARY SCHOOLS, SKILLS DEVELOPMENT, SMALL BUSINESS, SMALL ENTERPRISES, SOCIAL NORMS, SUBNATIONAL GOVERNMENTS, SURVIVAL PROBABILITY, SURVIVAL RATES, TAXATION, TOTAL EMPLOYMENT, TRANSPORT, URBAN AREAS, URBAN DWELLERS, URBANIZED COUNTRIES, VOCATIONAL EDUCATION, VOCATIONAL TRAINING, VULNERABILITY, WAGE EMPLOYMENT, WAGE SECTOR, WATER MANAGEMENT, WOMAN, WORK FORCE, WORKER, WORKERS, WORKFORCE, WORKING CAPITAL, WORKING POOR, YOUNG AGE, YOUTH EMPLOYMENT