 Determinants of Non-Farm Micro and Small Enterprise Participation in Rural GhanaSylvester N. Ayambila
A chapter in Conference Proceedings 2016, 2017, pp 25-49 from Universities Entrepreneurship and Enterprise Development in Africa International Conference Abstract: The non-farm sector is critical for the socio-economic development of Ghana especially the rural poor. Literature suggest that people engage in non-farm enterprises as a way out of poverty or a survival strategy, perhaps as a substitute for the landless. This paper analyses the determinants of individual participation in non-farm enterprises and the intensity of participation. The paper uses EGC/ISSER Socio-Economic Panel Survey data collected in 2009. The paper estimated the determinants of participation using a probit model and then estimated the intensity of participation using a truncated regression model. The results indicate that majority of women (about 73%) are engaged in non-farm enterprises in rural Ghana. The study found that females tended to participate more in non-farm self-employment and are less likely to participate in non-farm wage employment. The results further showed that individual characteristics such as the gender of the individual, being head of a household, being the spouse of a household head, having formal education, age of the individual, having access to credit, possessing a mobile phone, per capita landing holding and ownership of livestock influenced the participation of individuals in self-and wage employment. Results from truncated regression model for self-employed enterprises showed that having access to mobile phones, owning more livestock and electricity are important in determining the intensity of participation in self-employed enterprises. For wage-employment, being a household head, spouse of household head, having access to mobile phone and owning more livestock increased the number of days working on wage employment. JEL-codes: A13 M13 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sau:ueedcc:05:025-049 Access Statistics for this chapter More chapters in Proceedings Paper from Universities Entrepreneurship and Enterprise Development in Africa International Conference |
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