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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.

Suggested Citation

  • Lisa Daniels, 2003. "Factors that influence the expansion of the microenterprise sector: results from three national surveys in Zimbabwe," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(6), pages 675-692.
    • Handle: RePEc:wly:jintdv:v:15:y:2003:i:6:p:675-692
    DOI: 10.1002/jid.1017
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    References listed on IDEAS

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    1. Robert P. King & Derek Byerlee, 1978. "Factor Intensities and Locational Linkages of Rural Consumption Patterns in Sierra Leone," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 197-206.
    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).
    3. Duetsch, Larry L, 1984. "Entry and the Extent of Multiplant Operations," Journal of Industrial Economics, Wiley Blackwell, vol. 32(4), pages 477-487, June.
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    Cited by:

    1. Asha Sundaram, 2015. "The Impact of Trade Liberalization on Micro Enterprises: Do Banks Matter? Evidence from Indian Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(6), pages 832-853, December.
    2. Aalia Cassim & Kezia Lilenstein & Morne Oosthuizen & Francois Steenkamp, 2016. "Informality and Inclusive Growth in Sub-Saharan Africa," Working Papers 201602, University of Cape Town, Development Policy Research Unit.
    3. repec:ilo:ilowps:420694 is not listed on IDEAS
    4. World Bank, 2007. "Tanzania - Pilot Rural Investment Climate Assessment : Stimulating Non-Farm Microenterprise Growth," World Bank Publications - Reports 7798, The World Bank Group.
    5. Richard Black & Adriana Castaldo, 2009. "Return Migration And Entrepreneurship In Ghana And Côte D’Ivoire: The Role Of Capital Transfers," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(1), pages 44-58, February.
    6. 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.
    7. Luebker, Malte., 2008. "Employment, unemployment and informality in Zimbabwe : concepts and data for coherent policy-making," ILO Working Papers 994206943402676, International Labour Organization.
    8. Beegle,Kathleen G. & Benjamin,Nancy Claire & Recanatini,Francesca & Santini,Massimiliano, 2014. "Informal economy and the World Bank," Policy Research Working Paper Series 6888, The World Bank.
    9. Nancy Benjamin & Ahmadou Aly Mbaye, 2014. "Informality, Growth, and Development in Africa," WIDER Working Paper Series wp-2014-052, World Institute for Development Economic Research (UNU-WIDER).
    10. Graham Tipple, 2005. "The Place of Home-based Enterprises in the Informal Sector: Evidence from Cochabamba, New Delhi, Surabaya and Pretoria," Urban Studies, Urban Studies Journal Limited, vol. 42(4), pages 611-632, April.
    11. Loening, Josef & Lane, William Leeds, 2007. "Tanzania: Pilot Rural Investment Climate Assessment. Stimulating Nonfarm Microenterprise Growth," MPRA Paper 24824, University Library of Munich, Germany.
    12. 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.

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