Testing alternative measures of microenterprise profits and net worth
Using data from 448 microenterprises in Zimbabwe, this paper examines five alternative measures of profits and five alternative measures of net worth. The results show that the single-question proxies are too difficult for proprietors to answer, whereas the most complex profit measures generate many negative estimates. The best measure of profits, based on three questions, could be answered by all proprietors and it avoids recall problems associated with sales and expenses. Among the net worth proxies, all of the measures are positively correlated. Nonetheless, the proxy based on fixed assets, accounts receivable, debt, and inventory, showed the highest correlation with the full measure of net worth. Copyright © 2001 John Wiley & Sons, Ltd.
Volume (Year): 13 (2001)
Issue (Month): 5 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/5102/home|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vijverberg, W., 1988. "Profits From Self-Employment - A Case Study Of Cote D'Ivoire," Papers 43, World Bank - Living Standards Measurement.
- Daniels, Lisa & Mead, Donald C, 1998. "The Contribution of Small Enterprises to Household and National Income in Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 45-71, October.
When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:13:y:2001:i:5:p:599-614. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.