Participation and returns from informal service-oriented non-farm enterprises: Evidence from a survey of Nigerian households

Ikechukwu Darlington Nwaka and Okechukwu Lawrence Emeagwali

PLOS ONE, 2024, vol. 19, issue 3, 1-21

Abstract: We investigate the factors that influence the selection and productivity of informal service-oriented family enterprises in Nigeria. Using nationally representative micro-data from the Nigerian General Household Survey (2010–2015), we employed random-effect probit and selectivity-adjusted regression models to estimate and analyze the results. The findings reveal that the location of informal Non-Farm Household Enterprises (NFHEs)–whether home-based or non-home-based—significantly impacts the wholesale, retail, personal, and consultancy service sectors operated by informal NFHEs. This impact remains significant even after accounting for variations in individuals, households, or locational characteristics. Furthermore, when considering selectivity in the earnings equation, we found that home-based informal enterprises exhibit lower productivity compared to non-home-based enterprises, a difference that varies across sectors. Overall, factors such as the gender of business owners, educational levels, geopolitical zones, infrastructure, and business characteristics play a crucial role in determining the locational and productivity disparities among service-oriented enterprises in Nigeria. Key recommendations stemming from this study include addressing gender-based segregation and economic disparities, prioritising financial inclusion for small business development, bridging infrastructure gaps, and implementing policies that acknowledge and bolster the informal sector.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0298794 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 98794&type=printable (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0298794

DOI: 10.1371/journal.pone.0298794

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().