Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare

Vial, Virginie; Hanoteau, Julien

doi:10.1016/j.worlddev.2015.04.008

Cited by 46 publications

(40 citation statements)

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“…The poor households are more exposed to certain risks (Sparrow et al, 2014), have lower access to formal insurance mechanisms such as insurance, credit, and social protection systems. Specifically, the informal micro-enterprise reduces vulnerability by diversifying the professional activities in the business and permitting higher savings (Vial & Hanoteau, 2015). Current research supports the notion that micro-entrepreneurs who are involved in a night market or a hawker business have a strong tendency towards financial saving, which is consistent with the literature that they have low access to financial resources, and high exposure and vulnerability to risks (Vial & Hanoteau, 2015).…”

Section: Economic Vulnerabilitysupporting

confidence: 86%

“…On the other hand, vulnerability is considered the risk of being harmed and wounded, and negatively affected by unforeseen events (shocks) whether in general or in economics. For example, landlockedness, farness from a large market, and low levels of human resources tend to be serious handicaps to growth, but are not elements of vulnerability because they are not unforeseen events, however they may influence the consequences of a given shock (Vial & Hanoteau, 2015). The researcher furthered the study and provided two main reasons for households to get involved in a micro-enterprise, which are to increase their income and consumption, in order to cope with economic vulnerability (Floro & Swain, 2013;Verrest, 2013).…”

Section: Economic Vulnerabilitymentioning

confidence: 99%

“…Specifically, the informal micro-enterprise reduces vulnerability by diversifying the professional activities in the business and permitting higher savings (Vial & Hanoteau, 2015). Current research supports the notion that micro-entrepreneurs who are involved in a night market or a hawker business have a strong tendency towards financial saving, which is consistent with the literature that they have low access to financial resources, and high exposure and vulnerability to risks (Vial & Hanoteau, 2015). Assets accumulation represents a long-term insurance of welfare as added value compared to employment, especially for the informal micro-entrepreneurs.…”

Section: Economic Vulnerabilitymentioning

confidence: 99%

“…Assets accumulation represents a long-term insurance of welfare as added value compared to employment, especially for the informal micro-entrepreneurs. They have incentives to increase savings for lending, potential investment, and secure physical capital necessary to develop the business (Gentry & Hubbard, 2004;Tipple, 2005;Vial & Hanoteau, 2015). Therefore, micro-entrepreneurs assist in increasing the economic welfare as their trade-off objectives by providing livelihood for raising the living standards and addressing economic vulnerability (Verrest, 2013).…”

Section: Economic Vulnerabilitymentioning

confidence: 99%

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Examining the effectiveness of micro-enterprise development programs in Malaysia

Zainol

Mamun

Hassan

et al. 2017

Journal of International Studies

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Abstract. Previous studies on socioeconomic development have examined the effect of development initiatives (i.e., access to finance and training) on several socioeconomic indicators (i.e., income, empowerment, asset, quality of life, employment). These studies have focused mostly on the outcomes of specific types of programs offered by specific development organizations. This study however focuses on informal women micro-entrepreneurs' participation in various development programs available to them and their influence on entrepreneurial competencies, human capital development, competitive advantages, economic vulnerability, supportive environment, and performance of micro-enterprises. This cross-sectional study adopted the purposive random sampling method and collected data from 384 informal women entrepreneurs from the local markets in different districts of Kelantan, Malaysia. The findings show that the development program participants have relatively higher levels of entrepreneurial competencies, human capital development, and higher levels of enterprise performance compared to non-participants. It is also noted that the level of economic vulnerability is relatively low among participants compared to non-participants. However, these findings contradict most of the earlier studies 293that show a significant positive impact of micro-credit on socio-economic wellbeing, as the difference in entrepreneurial competencies, human capital development, economic vulnerability, and performance of micro-enterprises among participants and non-participants in this study is not statistically significant. However, findings reported significantly higher levels of competitive advantages, and better supportive environment among the participants compared to the non-participants. Development organizations should therefore focus on expanding their outreach to spread the positive effects of their development programs towards uplifting the economic condition of low and middle-income households in Malaysia.

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Section: Economic Vulnerabilitysupporting

confidence: 86%

Section: Economic Vulnerabilitymentioning

confidence: 99%

Section: Economic Vulnerabilitymentioning

confidence: 99%

Section: Economic Vulnerabilitymentioning

confidence: 99%

See 2 more Smart Citations

Examining the effectiveness of micro-enterprise development programs in Malaysia

Zainol

Mamun

Hassan

et al. 2017

Journal of International Studies

View full text Add to dashboard Cite

show abstract

“…The region has become one of 2 While the impact evaluation literature has moved beyond the estimation of average welfare effects and heterogeneous effects have been analyzed in studies on the impact of entrepreneurship, contract-farming, standards and cooperative membership (e.g. Fisher and Qaim, 2012;Hansen and Trifkovic, 2014;Verhofstadt and Maertens, 2015;Narayanan, 2014;Ramaswami et al, 2009;Vial and Hanoteau, 2015), evidence on heterogeneous effects is largely lacking in the literature on high-value exports. Polygamy is common in the area, with members of polygamist households living in the same compound.…”

Section: Research Areamentioning

confidence: 99%

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper is the first to present panel data evidence on the longer-term impact of expansion of global value chains and large-scale export-oriented farms in developing countries. Using panel data from two survey rounds covering a seven-year period and fixed effects regression, we estimate the longer-term income effects of wage employment on large-scale farms in the rapidly expanding horticultural export sector in Senegal. In addition to estimating average income effects, we estimate heterogeneous income effects using fixed effects quantile regression. We find that poverty and inequality reduced much faster in the research area than elsewhere in Senegal. Employment in the horticultural export sector significantly increases household income and the income effect is strongest for the poorest households. Expansion of the horticultural export sector in Senegal has been particularly pro-poor through creating employment that is accessible and creates substantial income gains for the poorest half of the rural population. These pro-poor employment effects contrast with insights in the literature on increased inequality from rural wage employment.

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The role of social networks in entrepreneurial ecosystems: The case of #StartupLokal in Jakarta

Wahyuningtyas¹,

Hanoteau²,

Vial³

2018

Glob Bus Org Exc

Self Cite

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With the largest economy in Southeast Asia and the fourth‐largest population in the world, Indonesia has tremendous entrepreneurial potential. The recent fast development of Internet‐based businesses there brings opportunities for startups to flourish. Some have already achieved remarkable success, despite a lack of institutional support to provide the necessary networks, material resources, and other elements of an entrepreneurial culture. Increasingly, these factors for success are being provided by entrepreneurial ecosystems in which entrepreneurial networks play a major role. The experiences of #StartupLokal illustrate how an entrepreneurial network can sprout from the field, relying on the passion and drive of successful serial entrepreneurs. They also reveal how the entrepreneurial community can inspire potential and new startup leaders, strengthen the entrepreneurial culture, and facilitate access to resources.

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Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare

Cited by 46 publications

References 50 publications

Examining the effectiveness of micro-enterprise development programs in Malaysia

Examining the effectiveness of micro-enterprise development programs in Malaysia

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

The role of social networks in entrepreneurial ecosystems: The case of #StartupLokal in Jakarta

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