Publication: Household Enterprises in Sub-Saharan Africa : Why They Matter for Growth, Jobs, and Livelihoods
Date
2012-08
ISSN
Published
2012-08
Author(s)
Abstract
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.
Citation
“Fox, Louise; Sohnesen, Thomas Pave. 2012. Household Enterprises in Sub-Saharan Africa : Why They Matter for Growth, Jobs, and Livelihoods. Policy Research Working Paper; No. 6184. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/5ab8f7e3-e026-5e8a-a825-79088e01c6f9 License: CC BY 3.0 IGO.”
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