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Entrepreneurship

Are female firms less productive? Findings from the Rural Investment Climate Pilot Surveys

Rita Costa's picture

The potentially deleterious effects of gender disparities on growth and poverty reduction have been receiving progressively more policy attention (reflected, for instance, in the inclusion of the promotion of gender parity amongst the Millennium Development Goals and the 2012 World Development Report). Inequities in labor market opportunities are of particular concern since labor earnings are the most important source of income for the poor in the vast majority of developing countries.
 
Although the vast majority of the poor live in rural areas and rural non-farm enterprises account for about 35-50% of rural income and roughly a third of rural employment in developing countries, relatively little is known about gender inequities in rural non-agricultural labor market outcomes due to data-limitations. This is unfortunate given the proliferation and diversification of rural non-farm activities and their potential to alleviate poverty, especially in countries where the importance of agriculture as an employer is likely to diminish.

Impact of the Financial Crisis on New Firm Registration

Leora Klapper's picture

As reports of sluggish global job creation continue, some look to new firms as a source of net job creation (Haltiwanger, 2011). But the lead article of this month’s Economics Letters, citing panel data from 93 countries, shows that most countries experienced a sharp drop in new firm registration during the financial crisis. As discussed in an earlier blog, relatively larger contractions are seen in countries with more developed financial markets and where entrepreneurs depend more on banks for start-up capital.

The story of the first rose farm in Ethiopia

Hinh T. Dinh's picture

 

For our research on African competitiveness in light, simple manufactured products , we recently visited the first Ethiopian rose farm, created in 2000. In the course of ten years, the farm triggered the rapid emergence of a competitive rose export industry that now involves more than seventy-five firms, hires more than 50,000 workers and is bringing in more than US $200 million a year.

We learned that the idea to start a rose farm first came to Ryaz’s (Owner of the farm) father, an Indian- origin head of a successful Ugandan conglomerate, after a visit to Ethiopia, where he scoped out potential business opportunities.  Although he considered banking and bottled water, highly favorable soil and climatic conditions (warm days and cold nights), competitive fuel and electricity costs and, above all, competitive air freight costs - which account for more than fifty percent of the export-related production costs - made rose farming an easy choice, despite Ethiopia not having any flower industry to speak of at the time.