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Factors that influence the expansion of the microenterprise sector: results from three national surveys in Zimbabwe

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  • Lisa Daniels

    (Department of Economics, Washington College, Chestertown, MD, USA)

Abstract

Using panel data from three nationwide surveys in Zimbabwe, an error components model is estimated to explore the factors that drive the small-enterprise sector. Among labour-intensive industries in urban areas, entry of new enterprises appears to be driven by surplus labour. This is supported by low barriers to entry and the negative relationship between economic growth and entry rates. In contrast, entry in capital-intensive industries is unrelated to economic growth and it is characterized by significant barriers to entry, including capital, working capital, and proprietor experience. With the exception of labour-intensive industries in rural areas, entry in all other small-enterprise industries is positively correlated with agricultural income. Copyright © 2003 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1017
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 15 (2003)
Issue (Month): 6 ()
Pages: 675-692

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Handle: RePEc:wly:jintdv:v:15:y:2003:i:6:p:675-692

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Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Duetsch, Larry L, 1984. "Entry and the Extent of Multiplant Operations," Journal of Industrial Economics, Wiley Blackwell, vol. 32(4), pages 477-87, June.
  2. Hazell, P. B. R. & Roell, Ailsa, 1983. "Rural growth linkages: household expenditure patterns in Malaysia and Nigeria," Research reports 41, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Loening, Josef & Lane, William Leeds, 2007. "Tanzania: Pilot Rural Investment Climate Assessment. Stimulating Nonfarm Microenterprise Growth," MPRA Paper 24824, University Library of Munich, Germany.
  2. Abiola Babajide Ph.D, 2012. "Effects of Microfinance on Micro and Small Enterprises (MSEs) Growth in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(3), pages 463-477, July.
  3. Masakure, Oliver & Cranfield, John & Henson, Spencer, 2008. "The Financial Performance of Non-farm Microenterprises in Ghana," World Development, Elsevier, vol. 36(12), pages 2733-2762, December.
  4. Richard Black & Adriana Castaldo, 2009. "Return Migration And Entrepreneurship In Ghana And C�Te D'Ivoire: The Role Of Capital Transfers," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(1), pages 44-58, 02.
  5. Benjamin, Nancy & Beegle, Kathleen & Recanatini, Francesca & Santini, Massimiliano, 2014. "Informal economy and the World Bank," Policy Research Working Paper Series 6888, The World Bank.
  6. Luebker, Malte, 2008. "Employment, unemployment and informality in Zimbabwe : concepts and data for coherent policy-making," ILO Working Papers 420694, International Labour Organization.
  7. World Bank, 2007. "Tanzania - Pilot Rural Investment Climate Assessment : Stimulating Non-Farm Microenterprise Growth," World Bank Other Operational Studies 7798, The World Bank.
  8. Asha Sundaram, 2011. "The Impact of Trade Liberalization on Micro Enterprises: Do Banks Matter? Evidence from Indian Manufacturing," Working Papers 225, Economic Research Southern Africa.

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