Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 527569
Title Risky Business? Rural Entrepreneurship in Subsistence Markets : Evidence from Burundi
Author(s) Cieslik, Katarzyna; D’Aoust, Olivia
Source European Journal of Development Research 30 (2018)4. - ISSN 0957-8811 - p. 693 - 717.
DOI https://doi.org/10.1057/s41287-017-0100-9
Department(s) Knowledge Technology and Innovation
WASS
Publication type Refereed Article in a scientific journal
Publication year 2018
Keyword(s) Burundi - risk aversion - rural entrepreneurship - social networks - subsistence farming
Abstract

Present-day development theory and practice highlight the potential of micro-entrepreneurship for poverty reduction in rural Africa. At the same time, subsequent studies show that entrepreneurial propensity is not often exhibited by subsistence farmers. Basing our analysis on a cross-section dataset from Burundi, we analyze the entrepreneurial livelihood strategies of rural households: diversifying crops, processing food for sale, supplementary wage work, and non-agricultural employment. We find that the farmers living close to subsistence level are more risk averse in their decision making and less likely to pursue these opportunities. Further, we show that risk aversion is negatively correlated to employment diversification, while there is no significant correlation for the other strategies. Employment diversification is indeed the most risk-bearing strategy that the subsistence farmers cannot afford as adverse outcomes would endanger their households’ survival. Our results also suggest that this risk effect is mitigated by the participation in formal and informal networks.

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