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Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda?

ACCESS TO BANKING ACCESS TO CREDIT ACCESS TO EDUCATION ACCESS TO ELECTRICITY ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FORMAL CREDIT ACCESS TO INFRASTRUCTURE ACCESS TO MARKET ACCESS TO MARKETS ACCESS TO PHYSICAL INFRASTRUCTURE ACCESS TO TECHNOLOGY AFFORDABLE FINANCIAL SERVICES AGRICULTURAL ECONOMICS AGRICULTURAL INCOME AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL SECTORS AGRICULTURAL WAGE AGRICULTURAL WORKERS AVAILABILITY OF SEED BARRIERS TO ENTRY BORROWING BRIBES BUSINESS OPPORTUNITIES BUSINESS OWNERS BUSINESS RISK BUSINESS RISKS CAPITAL INVESTMENT CHILD CARE COMMUNITIES CONFLICT CONSUMPTION DATA CONSUMPTION MEASURE CONSUMPTION SMOOTHING CORRUPTION CRIME CRIMES DEMOGRAPHIC COMPOSITION DESCRIPTION DIVERSIFICATION DROUGHT EARNINGS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES EDUCATION LEVELS EDUCATIONAL LEVELS EDUCATIONAL OPPORTUNITIES EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT SITUATION ENDOWMENTS ENTERPRISE DEVELOPMENT ENTERPRISE GROWTH ENTREPRENEURS EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILIES FAMILY FARM FAMILY MEMBERS FARM ACTIVITIES FARM EMPLOYMENT FARM ENTERPRISES FARM INCOME FARM SECTOR FARMERS FEMALE FEMALE HEADED HOUSEHOLDS FINANCES FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FINANCING ACCESS FOOD CONSUMPTION FOOD POLICY FORMAL BANKING GENDER GOVERNMENT POLICY HEAD OF HOUSEHOLD HIGHER EDUCATION LEVEL HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD HEAD HOUSEHOLD HEAD AGE HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSEHOLDS HUMAN CAPITAL IMPACT ON POVERTY INCOME GROWTH INCOME TAXES INEQUALITIES INFORMAL FINANCING INFORMAL SAVINGS INTERNATIONAL BANK IRRIGATION JOB CREATION LACK OF ACCESS LACK OF CAPITAL LACK OF FINANCE LAND PRODUCTIVITY LENDERS LIVELIHOOD STRATEGIES LIVING CONDITIONS MARKET FAILURES MARKET INFORMATION MICRO ENTERPRISE MICRO ENTERPRISES MINIMUM WAGE MOBILITY NATIONAL POVERTY NEW MARKET NONFARM INCOME NUTRITION OCCUPATION POOR POOR AREAS POOR HOUSEHOLDS POST HARVEST POVERTY ALLEVIATION POVERTY ASSESSMENT POVERTY ESTIMATES POVERTY LINE POVERTY LINES POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION STRATEGY PROFIT MARGINS PROFITABLE BUSINESS REDUCTION IN POVERTY REGIONAL DUMMIES REMITTANCES RISK REDUCTION ROSCAS RUNNING WATER RURAL RURAL AREA RURAL AREAS RURAL DEVELOPMENT RURAL ECONOMY RURAL ENTERPRISES RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL HOUSEHOLDS REPORT RURAL INVESTMENT RURAL POVERTY SAFETY SAVINGS SAVINGS MECHANISMS SEASONAL EMPLOYMENT SEED FUNDING SELF-EMPLOYMENT SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SOURCES OF INCOME START-UP START-UPS STRUCTURAL TRANSFORMATION SUBSISTENCE TAX CODES TRANSACTIONS COST URBAN AREAS WAGE EMPLOYMENT WAR WORKING CAPITAL
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World Bank, Washington, DC
Africa | Mozambique
2013-10-02T13:45:00Z | 2013-10-02T13:45:00Z | 2013-08

Household 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.

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