Purpose

This paper examines household and community characteristics that influence the entry of rural households into non-farm entrepreneurship and investigates the various factors that influence the market exit of non-farm enterprises (NFEs).

Design/methodology/approach

The authors use data from three rounds (2011/12, 2013/14 and 2015/16) of the World Bank’s Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA). The authors employ panel logit and multilevel logit models to examine the probability of opening one or more enterprises and the enterprise exit rates.

Findings

Results indicate that the likelihood of starting a NFE is positively associated with primary education attainment, access to credit, experiencing idiosyncratic shocks and availability of formal financial institutions. Age, higher education attainment and rising farm input prices constrain entry into non-farm entrepreneurship. The enterprise exit rate is negatively associated with small-town residence, wealth, access to tar/gravel roads and cellphone communication.

Practical implications

Policymakers and administrators should strive to address the challenges that communities face in transportation, communication and financial services. Policies aimed at stabilizing prices and increasing access to mobile communication, primary education and road infrastructure could help expand the rural non-farm sector.

Originality/value

Previous studies primarily examined the determinants of participation in NFEs at a given time using cross-sectional data. The current study uses panel data to study the dynamics of NFE ownership by investigating households’ decisions to enter into or exit from the sector.

Peer review

The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-09-2022-0611

中文翻译：

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埃塞俄比亚农村家庭进入非农创业与企业市场退出

目的

本文考察了影响农户进入非农创业的家庭和社区特征，并调查了影响非农企业市场退出的各种因素。

设计/方法论/途径

作者使用了世界银行生活水平衡量研究——农业综合调查（LSMS-ISA）三轮（2011/12、2013/14 和 2015/16）的数据。作者采用面板 Logit 和多级 Logit 模型来检验开设一个或多个企业的概率以及企业退出率。

发现

结果表明，开始 NFE 的可能性与初等教育程度、获得信贷的机会、经历特殊冲击以及正规金融机构的可用性呈正相关。年龄、较高的教育程度和不断上涨的农业投入价格限制了非农创业的进入。企业退出率与小城镇居住、财富、柏油/碎石路的通行性和手机通讯呈负相关。

实际影响

政策制定者和管理者应努力解决社区在交通、通信和金融服务方面面临的挑战。旨在稳定价格和增加获得移动通信、初等教育和道路基础设施的政策可能有助于扩大农村非农业部门。

原创性/价值

先前的研究主要使用横截面数据考察了特定时间参与非金融实体的决定因素。目前的研究使用面板数据通过调查家庭进入或退出该行业的决定来研究非金融资产所有权的动态。

同行评审

本文的同行评审历史记录位于 https://publons.com/publon/10.1108/IJSE-09-2022-0611