Households’ entry into non-farm entrepreneurship and the market exit of enterprises in rural Ethiopia

IF 1.9 Q2 ECONOMICS

INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS Pub Date : 2023-12-04 DOI:10.1108/ijse-09-2022-0611

Melaku Abegaz, Pascal Ngoboka

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引用次数: 0

Abstract

Purpose

This paper examines household and community characteristics that influence the entry of rural households into non-farm entrepreneurship and investigates the various factors that influence the market exit of non-farm enterprises (NFEs).

Design/methodology/approach

The authors use data from three rounds (2011/12, 2013/14 and 2015/16) of the World Bank’s Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA). The authors employ panel logit and multilevel logit models to examine the probability of opening one or more enterprises and the enterprise exit rates.

Findings

Results indicate that the likelihood of starting a NFE is positively associated with primary education attainment, access to credit, experiencing idiosyncratic shocks and availability of formal financial institutions. Age, higher education attainment and rising farm input prices constrain entry into non-farm entrepreneurship. The enterprise exit rate is negatively associated with small-town residence, wealth, access to tar/gravel roads and cellphone communication.

Practical implications

Policymakers and administrators should strive to address the challenges that communities face in transportation, communication and financial services. Policies aimed at stabilizing prices and increasing access to mobile communication, primary education and road infrastructure could help expand the rural non-farm sector.

Originality/value

Previous studies primarily examined the determinants of participation in NFEs at a given time using cross-sectional data. The current study uses panel data to study the dynamics of NFE ownership by investigating households’ decisions to enter into or exit from the sector.

Peer review

The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-09-2022-0611

查看原文本刊更多论文

埃塞俄比亚农村家庭进入非农创业与企业市场退出

本文考察了影响农户进入非农创业的家庭和社区特征，并考察了影响非农企业市场退出的各种因素。作者使用了世界银行生活水平衡量研究-农业综合调查(lsm - isa)三轮(2011/12、2013/14和2015/16)的数据。本文采用面板逻辑模型和多层逻辑模型，考察了开放一家或多家企业的概率和企业退出率。研究结果表明，创业的可能性与初等教育程度、获得信贷的机会、经历特殊冲击和获得正规金融机构的机会呈正相关。年龄、高等教育程度和不断上涨的农产品投入价格限制了非农业创业的进入。企业退出率与小城镇居住、财富、沥青/砾石道路和手机通信呈负相关。实际意义决策者和管理者应努力解决社区在交通、通讯和金融服务方面面临的挑战。旨在稳定价格和增加获得移动通信、初等教育和道路基础设施的机会的政策可以帮助扩大农村非农业部门。原创性/价值先前的研究主要是使用横断面数据检查在给定时间内参与nfe的决定因素。本研究使用面板数据，通过调查家庭进入或退出该部门的决定来研究NFE所有权的动态。同行评议这篇文章的同行评议历史可以在https://publons.com/publon/10.1108/IJSE-09-2022-0611上找到

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来源期刊

INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS ECONOMICS-

CiteScore

3.20

自引率

5.30%

发文量

期刊介绍： The International Journal of Social Economics publishes original and peer-reviewed theoretical and empirical research in the field of social economics. Its focus is on the examination and analysis of the interaction between economic activity, individuals and communities. Social economics focuses on the relationship between social action and economies, and examines how social and ethical norms influence the behaviour of economic agents. It is inescapably normative and focuses on needs, rather than wants or preferences, and considers the wellbeing of individuals in communities: it accepts the possibility of a common good rather than conceiving of communities as merely aggregates of individual preferences and the problems of economics as coordinating those preferences. Therefore, contributions are invited which analyse and discuss well-being, welfare, the nature of the good society, governance and social policy, social and economic justice, social and individual economic motivation, and the associated normative and ethical implications of these as they express themselves in, for example, issues concerning the environment, labour and work, education, the role of families and women, inequality and poverty, health and human development.