Sohnesen, Thomas PaveFox, Louise2013-10-022013-10-022013-08https://hdl.handle.net/10986/16003Household enterprises -- usually one-person-operated tiny informal enterprises -- are a rapidly growing source of employment in Sub-Saharan Africa, especially in lower-income countries. Household enterprises tend to operate with limited interest or support from governments. This is the case in Mozambique, where neither the poverty reduction strategy nor small and medium enterprise development policies include household enterprises. Using multiple household surveys, including a recent panel data set, this paper identifies the characteristics of the sector and its development during the period in which Mozambique experienced rapid economic growth. The analysis finds that household enterprises in Mozambique are associated with higher household consumption, lower rural poverty, as well as upward mobility, particularly for rural and poorly educated households. But if the Mozambican government wants to tap this potential, it will need a different strategy than one designed to support small and medium enterprises, because creation and survival in this sector seems to depend on a set of factors related to the human capital in the household and development in the location, not the soft business environment constraints, such as licensing and permitting and corruption, which are cited by larger business.en-USCC BY 3.0 IGOACCESS TO BANKINGACCESS TO CREDITACCESS TO EDUCATIONACCESS TO ELECTRICITYACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FORMAL CREDITACCESS TO INFRASTRUCTUREACCESS TO MARKETACCESS TO MARKETSACCESS TO PHYSICAL INFRASTRUCTUREACCESS TO TECHNOLOGYAFFORDABLE FINANCIAL SERVICESAGRICULTURAL ECONOMICSAGRICULTURAL INCOMEAGRICULTURAL LANDAGRICULTURAL OUTPUTAGRICULTURAL SECTORSAGRICULTURAL WAGEAGRICULTURAL WORKERSAVAILABILITY OF SEEDBARRIERS TO ENTRYBORROWINGBRIBESBUSINESS OPPORTUNITIESBUSINESS OWNERSBUSINESS RISKBUSINESS RISKSCAPITAL INVESTMENTCHILD CARECOMMUNITIESCONFLICTCONSUMPTION DATACONSUMPTION MEASURECONSUMPTION SMOOTHINGCORRUPTIONCRIMECRIMESDEMOGRAPHIC COMPOSITIONDESCRIPTIONDIVERSIFICATIONDROUGHTEARNINGSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICIESEDUCATION LEVELSEDUCATIONAL LEVELSEDUCATIONAL OPPORTUNITIESEMPLOYMENT GROWTHEMPLOYMENT OPPORTUNITIESEMPLOYMENT SITUATIONENDOWMENTSENTERPRISE DEVELOPMENTENTERPRISE GROWTHENTREPRENEURSEXCHANGE RATEEXPENDITUREEXPENDITURESFAMILIESFAMILY FARMFAMILY MEMBERSFARM ACTIVITIESFARM EMPLOYMENTFARM ENTERPRISESFARM INCOMEFARM SECTORFARMERSFEMALEFEMALE HEADED HOUSEHOLDSFINANCESFINANCIAL INSTITUTIONSFINANCIAL PRODUCTSFINANCING ACCESSFOOD CONSUMPTIONFOOD POLICYFORMAL BANKINGGENDERGOVERNMENT POLICYHEAD OF HOUSEHOLDHIGHER EDUCATION LEVELHOUSEHOLD CONSUMPTIONHOUSEHOLD CONSUMPTION PER CAPITAHOUSEHOLD HEADHOUSEHOLD HEAD AGEHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD SIZEHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHOUSEHOLD WELFAREHOUSEHOLDSHUMAN CAPITALIMPACT ON POVERTYINCOME GROWTHINCOME TAXESINEQUALITIESINFORMAL FINANCINGINFORMAL SAVINGSINTERNATIONAL BANKIRRIGATIONJOB CREATIONLACK OF ACCESSLACK OF CAPITALLACK OF FINANCELAND PRODUCTIVITYLENDERSLIVELIHOOD STRATEGIESLIVING CONDITIONSMARKET FAILURESMARKET INFORMATIONMICRO ENTERPRISEMICRO ENTERPRISESMINIMUM WAGEMOBILITYNATIONAL POVERTYNEW MARKETNONFARM INCOMENUTRITIONOCCUPATIONPOORPOOR AREASPOOR HOUSEHOLDSPOST HARVESTPOVERTY ALLEVIATIONPOVERTY ASSESSMENTPOVERTY ESTIMATESPOVERTY LINEPOVERTY LINESPOVERTY RATESPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPROFIT MARGINSPROFITABLE BUSINESSREDUCTION IN POVERTYREGIONAL DUMMIESREMITTANCESRISK REDUCTIONROSCASRUNNING WATERRURALRURAL AREARURAL AREASRURAL DEVELOPMENTRURAL ECONOMYRURAL ENTERPRISESRURAL HOUSEHOLDRURAL HOUSEHOLD INCOMERURAL HOUSEHOLDSRURAL HOUSEHOLDS REPORTRURAL INVESTMENTRURAL POVERTYSAFETYSAVINGSSAVINGS MECHANISMSSEASONAL EMPLOYMENTSEED FUNDINGSELF-EMPLOYMENTSMALL BUSINESSESSMALL ENTERPRISESMALL ENTERPRISESSOURCES OF INCOMESTART-UPSTART-UPSSTRUCTURAL TRANSFORMATIONSUBSISTENCETAX CODESTRANSACTIONS COSTURBAN AREASWAGE EMPLOYMENTWARWORKING CAPITALWorld Bank10.1596/1813-9450-6570