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Microentrepreneurship in Developing Countries

Author

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  • Jayachandran, Seema

    (Northwestern University)

Abstract

This article reviews the recent literature in economics on small-scale entrepreneurship ("microentrepreneurship") in low-income countries. Major themes in the literature include the determinants and consequences of joining the formal sector; the impacts of access to credit and other financial services; the impacts of business training; barriers to hiring; and the distinction between self-employment by necessity and self-employment as a calling. The article devotes special attention to unique issues that arise with female entrepreneurship.

Suggested Citation

  • Jayachandran, Seema, 2020. "Microentrepreneurship in Developing Countries," IZA Discussion Papers 12943, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12943
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    Cited by:

    1. Wolfgang Stojetz & Tilman Brück, 2021. "The Double Burden of Female Protracted Displacement: Survey Evidence on Gendered Livelihoods in El Fasher, Darfur," HiCN Working Papers 356, Households in Conflict Network.
    2. Pedro Bento & Lin Shao & Faisal Sohail, 2023. "Gender Gaps in Time Use and Entrepreneurship," Working Papers 20230901-001, Texas A&M University, Department of Economics.
    3. Ranasinghe, Ashantha, 2024. "Gender specific distortions, entrepreneurship and misallocation," Journal of Economic Dynamics and Control, Elsevier, vol. 162(C).
    4. Kazi Iqbal & Md Nahid Ferdous Pabon & Md Wahid Ferdous Ibon, 2023. "Examining rural income and employment in Bangladesh: A case of structural changes in the rural nonfarm sector in a developing country," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 364-387, July.
    5. Rodriguez Torres, Omar, 2021. "How different are necessity and opportunity firms? Evidence from a quantile analysis of the Colombian microenterprise sector," MERIT Working Papers 2021-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Roy, Devesh & Gupta, Manavi & Kishore, Avinash & Saroj, Sunil, 2021. "Analyzing the Most Poverty Sensitive Non-Farm Sector in India: A Case Study of Food Enterprises Using Enterprise and Labor Force Surveys," 2021 Conference, August 17-31, 2021, Virtual 315869, International Association of Agricultural Economists.
    7. Sènakpon Fidèle A. Dedehouanou & Didier Y. Alia, 2020. "Dynamics of off-farm self-employment in West African Sahel," WIDER Working Paper Series wp-2020-142, World Institute for Development Economic Research (UNU-WIDER).
    8. Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang, 2020. "Contract structure, time preference, and technology adoption," GLO Discussion Paper Series 633, Global Labor Organization (GLO).
    9. Chaurey, Ritam & Le, Duong Trung, 2022. "Infrastructure maintenance and rural economic activity: Evidence from India," Journal of Public Economics, Elsevier, vol. 214(C).
    10. Dammert, Ana C. & Nansamba, Aisha, 2023. "Skills training and business outcomes: Experimental evidence from Liberia," World Development, Elsevier, vol. 162(C).
    11. Houngbonon,Georges Vivien & Mensah,Justice Tei & Traore,Nouhoum-000531164, 2022. "The Impact of Internet Access on Innovation and Entrepreneurship in Africa," Policy Research Working Paper Series 9945, The World Bank.
    12. Lo Bue, Maria C. & Le, Tu Thi Ngoc & Santos Silva, Manuel & Sen, Kunal, 2022. "Gender and vulnerable employment in the developing world: Evidence from global microdata," World Development, Elsevier, vol. 159(C).
    13. Ghazal Mir Zulfiqar, 2022. "The social relations of gold: How a gendered asset serves social reproduction and finance in Pakistan," Gender, Work and Organization, Wiley Blackwell, vol. 29(3), pages 739-757, May.
    14. Brian McCaig & Nina Pavcnik, 2021. "Entry and Exit of Informal Firms and Development," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(3), pages 540-575, September.
    15. Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang, 2020. "Contract Structure, Time Preference, and Technology Adoption," IZA Discussion Papers 13590, Institute of Labor Economics (IZA).
    16. Madhubalan Viswanathan & Hussein Faruque Aly & Ronald Duncan & Namrata Mandhan, 2021. "Unequal but essential: How subsistence consumer–entrepreneurs negotiate unprecedented shock with extraordinary resilience during COVID‐19," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(1), pages 151-178, March.
    17. Brooks, Wyatt & Donovan, Kevin & Johnson, Terence R. & Oluoch-Aridi, Jackline, 2022. "Cash transfers as a response to COVID-19: Experimental evidence from Kenya," Journal of Development Economics, Elsevier, vol. 158(C).
    18. Ranasinghe, Ashantha, 2024. "Misallocation across establishment gender," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 183-206.
    19. Padilla-Angulo, Laura & Lasarte-López, Jesús Miguel & Pozo, Pedro Caldentey Del, 2023. "Policy evaluations of microenterprise business support services in Latin America: A systematic review," Evaluation and Program Planning, Elsevier, vol. 97(C).
    20. Stöhr, Christian, 2022. "The Effect of Micro-Entrepreneurship on Migration Plans of Young Adults in Rural Sub-Saharan Africa and the Mediating Role of Subjective and Economic Well-Being," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(5), pages 1326-1360.
    21. Das,Smita & Delavallade,Clara Anne & Fashogbon,Ayodele Emmanuel & Ogunleye,Wale Olatunji & Papineni,Sreelakshmi, 2021. "Occupational Sex Segregation in Agriculture : Evidence on Gender Norms and Socio-Emotional Skills in Nigeria," Policy Research Working Paper Series 9695, The World Bank.

    More about this item

    Keywords

    small businesses; female entrepreneurship; self-employment; informal sector;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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