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Household Enterprises in Sub-Saharan Africa : Why They Matter for Growth, Jobs, and Livelihoods

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
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World Bank, Washington, DC
Africa
2013-01-02T20:18:25Z | 2013-01-02T20:18:25Z | 2012-08

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.

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