Improving the Rural Investment Climate for Businesses : Key to Rural Income Generation
An appropriate rural investment climate (RIC) is essential for rural businesses to be successful and generate employment and income in their communities. Improving the investment climate could facilitate income-generation activities in both farm an...
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Format: | Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2017
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Online Access: | http://documents.worldbank.org/curated/en/279561468203676596/Improving-the-rural-investment-climate-for-businesses-key-to-rural-income-generation http://hdl.handle.net/10986/26897 |
Summary: | An appropriate rural investment climate
(RIC) is essential for rural businesses to be successful and
generate employment and income in their communities.
Improving the investment climate could facilitate
income-generation activities in both farm and nonfarm
sectors, thus reducing rural poverty. Nonfarm sector focused
growth, combined with agricultural growth, and has been
shown by Delgado et al. (1998) to have a significant impact
on the local economy through the generation of employment
and income. This study is the first to focus on both farm
and nonfarm enterprises in its 2010 surveys of RIC in Yemen,
Burkina Faso, Nigeria, and Mozambique unlike six previous
RIC assessment (RICA) pilot projects that focused only on
nonfarm enterprises. This report assesses the weaknesses and
strengths of all RIC components in farm and nonfarm
enterprises of the four countries surveyed, and recommends
measures to address the weaknesses. The report identifies
similar business obstacles for farm and nonfarm enterprises
and four critical areas of the RIC to be improved. The
results of the RICA are based on analyses of obstacles
perceived by rural entrepreneurs and on assessments by RIC
indicators, enterprise entry and exit, and enterprise
performance. To have maximum synergy effects, farm and
nonfarm enterprises should be promoted together. |
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