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Household Enterprises and Poverty Reduction in Sub-Saharan Africa

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  • Louise Fox
  • Thomas Pave Sohnesen

Abstract

type="main" xml:id="dpr12152-abs-0001"> Employment in Household Enterprises (HEs) has been an integral part of the recent economic growth in sub-Saharan Africa (SSA). Yet employment and development strategies tend to exclude the sector, despite the fact that households with HEs tend to be richer. A good example is Mozambique, where 34% of households rely on income from this source. Analysis of household livelihoods using panel data shows that starting HEs is associated with upward wealth mobility and poverty reduction, particularly for rural and poorly-educated households. Targeted programmes directed towards the constraints to HE creation, survival and income growth would be likely to enhance the effectiveness of employment and poverty reduction strategies in Mozambique as well as in other low income countries in SSA.

Suggested Citation

  • Louise Fox & Thomas Pave Sohnesen, 2016. "Household Enterprises and Poverty Reduction in Sub-Saharan Africa," Development Policy Review, Overseas Development Institute, vol. 34(2), pages 197-221, March.
    • Handle: RePEc:bla:devpol:v:34:y:2016:i:2:p:197-221
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    File URL: http://hdl.handle.net/10.1111/dpr.2016.34.issue-2
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    Citations

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    Cited by:

    1. Aloysius Newenham-Kahindi & Charles E Stevens, 2018. "An institutional logics approach to liability of foreignness: The case of mining MNEs in Sub-Saharan Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(7), pages 881-901, September.
    2. Van den Broeck, Goedele & Kilic, Talip, 2019. "Dynamics of off-farm employment in Sub-Saharan Africa: A gender perspective," World Development, Elsevier, vol. 119(C), pages 81-99.
    3. Sam Jones & Thomas Pave Sohnesen & Neda Trifkovic, 2023. "Educational expansion and shifting private returns to education: Evidence from Mozambique," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1407-1428, August.
    4. Nagler, Paula, 2017. "A profile of non-farm household enterprises in Sub-Saharan Africa," MERIT Working Papers 2017-048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Stanley Sharaunga & Maxwell Mudhara, 2021. "Analysis of Livelihood Strategies for Reducing Poverty Among Rural Women's Households: A Case Study of KwaZulu‐Natal, South Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(1), pages 127-150, January.
    6. Sam Jones & Thomas Pave Sohnesen & Neda Trifković, 2018. "The evolution of private returns to education during post-conflict transformation: Evidence from Mozambique," WIDER Working Paper Series wp-2018-143, World Institute for Development Economic Research (UNU-WIDER).
    7. Sam Jones & Neda Trifkovic & Thomas Sohnesen, 2018. "The evolution of private returns to education during post-conflict transformation: Evidence from Mozambique," WIDER Working Paper Series 143, World Institute for Development Economic Research (UNU-WIDER).

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