World Bank2012-03-192012-03-192009-10-06https://hdl.handle.net/10986/3125Ethiopia's rural non-farm sector is significant and participation is increasing. The sector is particularly important for women and poorer households. Non-farm enterprises provide income-earning opportunities to those lacking alternative options and supplementary income for farming households. This report is organized into seven chapters. The first chapter lays the analytical groundwork for assessing the rural investment climate in Ethiopia and establishes a broader context for the empirical findings. The second chapter analyzes size and basic enterprise characteristics. The third chapter sheds light on the role of women in rural entrepreneurship. The fourth chapter analyzes enterprise dynamics: start-up, closure, and growth. The fifth chapter is dedicated to the welfare effects of rural enterprises, in particular their impact on food security and distributional effects. The sixth chapter compares rural and urban informal enterprise performance and considers the role of small market towns. The final chapter summarizes the findings and offers reflections for policy.CC BY 3.0 IGOACCESS TO CAPITALACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO RURAL FINANCEADVISORY SERVICESAFFORDABLE ACCESSAGRICULTURAL ACTIVITIESAGRICULTURAL COMMODITIESAGRICULTURAL DEVELOPMENTAGRICULTURAL GROWTHAGRICULTURAL INCOMEAGRICULTURAL LANDAGRICULTURAL OUTPUTAGRICULTURAL PRODUCEAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTIVITYAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAGRICULTURAL WAGEAGRICULTUREARBITRAGEBANKSBARRIERS TO ENTRYBUSINESS DEVELOPMENTBUSINESS LOCATIONCAPITAL STOCKCASH TRANSFERSCASUAL WORKERSCHARACTERISTICS OF WOMENCHRONIC FOOD INSECURITYCONFLICTCONSUMER PRICE INDEXCONSUMERSCOOPERATIVESCREDIT COOPERATIVESCREDIT MARKETSCREDITSDEMOGRAPHIC CHARACTERISTICSDEVELOPMENT AGENCYDEVELOPMENT POLICIESDEVELOPMENT STRATEGIESDEVELOPMENT STRATEGYDIMINISHING RETURNSDISTRIBUTIONAL EFFECTSDIVERSIFICATIONDROUGHTEARNINGSECONOMIC ACTIVITIESECONOMIC CHARACTERISTICSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC OPPORTUNITIESECONOMIC SHOCKSELEMENTARY SCHOOLEMPLOYEEEMPLOYEREMPLOYMENT GROWTHEMPLOYMENT INCOMEEMPLOYMENT OPPORTUNITIESENROLLMENTENTERPRISE DEVELOPMENTENTERPRISE GROWTHENTREPRENEURIAL ACTIVITYENTREPRENEURSEQUAL RIGHTSETHNIC GROUPSEXCHANGE RATEEXPENDITUREEXPORTSFAMILIESFARM ACTIVITIESFARM EMPLOYMENTFARM PRODUCTSFARMERSFEMALE ENTREPRENEURSFEMALE PARTICIPATIONFEMALE-HEADED HOUSEHOLDSFINANCE ACCESSFINANCESFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL SECTORFINANCIAL SUPPORTFOOD AIDFOOD INSECURE HOUSEHOLDSFOOD INSECURITYFOOD PRICEFOOD PRICESFOOD PROCESSINGFOOD SECURITYFOOD SHORTAGESGDPGENDERGENDER DIFFERENCEGENDER DIFFERENCESGROSS DOMESTIC PRODUCTGROUP LENDINGGROUP LOANGROWTH RATEHEAD OF HOUSEHOLDHIGH INTEREST RATESHOUSEHOLD CONSUMPTIONHOUSEHOLD HEADHOUSEHOLD INCOMEHOUSEHOLD SIZEHOUSEHOLD SURVEYHOUSEHOLDSHUSBANDSINCOME DISTRIBUTIONINCOME-GENERATING ACTIVITIESINDUSTRIALIZATIONINFLATION RATEINFLATION RATESINFORMATION GAPINFORMATION SYSTEMSINSTITUTIONAL SUPPORTINSURANCELABOR MARKETLACK OF ACCESSLACK OF INFORMATIONLAND DEGRADATIONLAND MANAGEMENTLAND OWNERSHIPLIMITED ACCESSLIMITED ACCESS TO FINANCELOCAL FARMERSMARGINAL PRODUCTIVITYMARKET DEVELOPMENTMARKET FAILURESMFIMICRO ENTERPRISESMICRO-ENTERPRISESMICRO-FINANCEMICRO-FINANCE INSTITUTIONSMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMONEYLENDERSNATIONAL BANKNONFARM INCOMEOPERATING COSTSOPPORTUNITY COSTOUTREACHPEOPLESPOORPOOR ACCESSPOVERTY REDUCTIONPRIVATE ENTERPRISEPRIVATE ENTREPRENEURSPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPROFITABILITYPUBLIC INVESTMENTSPUBLIC WORKSREGRESSION ANALYSISREGULATORY FRAMEWORKREMITTANCEREMITTANCESREMOTE RURAL AREASRURALRURAL AREARURAL AREASRURAL BUSINESSRURAL DEVELOPMENTRURAL ECONOMIC GROWTHRURAL ECONOMYRURAL ENTERPRISE DEVELOPMENTRURAL ENTERPRISESRURAL ENTREPRENEURSRURAL FINANCERURAL GROWTHRURAL HOUSEHOLDRURAL HOUSEHOLD INCOMERURAL HOUSEHOLDSRURAL INCOMERURAL INCOMESRURAL INFRASTRUCTURERURAL INVESTMENTRURAL LABORRURAL LABOR MARKETRURAL LIVELIHOODSRURAL MARKETRURAL MIGRATIONRURAL POPULATIONRURAL POVERTYRURAL REGIONSRURAL TOWNSSAFETY NETSAFETY NETSSALES GROWTHSALES REVENUESANITATIONSAVINGSSELF EMPLOYMENTSELF-EMPLOYMENTSMALL ENTERPRISESMALL ENTERPRISESSMALL FARMERSSMALL FARMSSMALLHOLDERSMALLHOLDER FARMINGSMALLHOLDERSSOURCE OF INCOMESOURCES OF INCOMESTART-UPSTART-UP CAPITALSUPPLY CHAINSUPPLY CHAINSTARGETINGTOTAL FACTOR PRODUCTIVITYTRANSACTION COSTSUNIONSURBAN AREASVALUE ADDEDWAGESWOMANWOMEN ENTREPRENEURSWorld Bank10.1596/3125