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

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...

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Main Authors: Fox, Louise, Sohnesen, Thomas Pave
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
WAR
Online Access:http://documents.worldbank.org/curated/en/2013/08/18109190/household-enterprises-mozambique-key-poverty-reduction-not-development-agenda
http://hdl.handle.net/10986/16003
id okr-10986-16003
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic 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
spellingShingle 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
Fox, Louise
Sohnesen, Thomas Pave
Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda?
geographic_facet Africa
Mozambique
relation Policy Research Working Paper;No. 6570
description 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.
format Publications & Research :: Policy Research Working Paper
author Fox, Louise
Sohnesen, Thomas Pave
author_facet Fox, Louise
Sohnesen, Thomas Pave
author_sort Fox, Louise
title Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda?
title_short Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda?
title_full Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda?
title_fullStr Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda?
title_full_unstemmed Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda?
title_sort household enterprises in mozambique : key to poverty reduction but not on the development agenda?
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/08/18109190/household-enterprises-mozambique-key-poverty-reduction-not-development-agenda
http://hdl.handle.net/10986/16003
_version_ 1764431996414590976
spelling okr-10986-160032021-04-23T14:03:27Z Household Enterprises in Mozambique : Key to Poverty Reduction but Not on the Development Agenda? Fox, Louise Sohnesen, Thomas Pave 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 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. 2013-10-02T13:45:00Z 2013-10-02T13:45:00Z 2013-08 http://documents.worldbank.org/curated/en/2013/08/18109190/household-enterprises-mozambique-key-poverty-reduction-not-development-agenda http://hdl.handle.net/10986/16003 English en_US Policy Research Working Paper;No. 6570 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Mozambique