Promoting the Rural Farm and Nonfarm Businesses : Evidence from the Yemen Rural Investment Climate

This study examines the major constraints of rural business entry and performance in Yemen. The Yemen rural investment climate survey made it possible to analyze rural investment climate constraints for rural businesses. The survey was used to investigate both farm and nonfarm rural enterprises. The rural investment climate was assessed using a combination of subjective impressions related by rural entrepreneurs, and a more objective, empirical set of analyses that employed indicators to rank the constraints to "doing business" in the areas surveyed. These empirical analyses included application of the entry model, the performance model, the closure model, and the migration model. The migration model was introduced to identify how the rural investment climate variables at the community level increase migration and economic activities. Based on the assessment of the rural investment climate, this paper identifies and explains four critical areas in which the rural investment climate in Yemen can be improved: market demand, access to markets, access to finance, and the provision of business services. Because farm and nonfarm businesses often experience common or similar constraints, the climate in which they operate can often be improved with the same measures and policies. Addressing the constraints that affect rural women entrepreneurs in particular, who play a vital role in rural nonfarm enterprises, warrants clear priority as a means to generate income and employment. Security and labor issues are identified as the key such constraints that disproportionately affect women.

Bibliographic Details

Main Authors:	Sawada, Naotaka, Zhang, Jian
Language:	English en_US
Published:	World Bank, Washington, DC 2012-07
Subjects:	ACCESS ROADS, ACCESS TO FINANCE, ACCESS TO MARKET, ACCESS TO MARKETS, ACCIDENTS, ACCOUNTING, AGRICULTURAL ECONOMICS, AGRICULTURAL EXTENSION, AGRICULTURAL INCOME, ANNUAL INTEREST RATE, APR, BANK ACCOUNT, BANK ACCOUNTS, BANKS, BORROWING, BRIDGE, BRIDGE CONSTRUCTION, BUSINESS CLIMATES, BUSINESS ENTRY, BUSINESS ENVIRONMENT, BUSINESS MANAGEMENT, BUSINESS OPERATION, BUSINESS OPERATIONS, BUSINESS PROMOTION, BUSINESS SERVICE, BUSINESS SERVICES, BUSINESS TRANSACTIONS, CALCULATION, CELL PHONE, CELL PHONES, COLLATERAL, COMMODITY, COMMUNITY SURVEY, COMPUTERS, CONGESTION, CONSUMER, CONSUMER DEMAND, CONSUMERS, CONTRIBUTION, CORRUPTION, COST OF TRANSPORTATION, CREDIT GUARANTEE, CUSTOMS, DELIVERY SERVICE, DELIVERY SERVICES, DEVELOPMENT BANK, DIVERSIFICATION, ECONOMIC ACTIVITIES, ECONOMIC DEVELOPMENT, ECONOMIC EMPOWERMENT, ECONOMIC MULTIPLIER EFFECTS, ECONOMIC REFORM, ECONOMIES OF SCALE, EDUCATION LEVEL, EDUCATIONAL ATTAINMENT, ELECTRICITY, EMPLOYEE, EMPLOYMENT GROWTH, EMPOWERMENT, ENTERPRISE GROWTH, ENTERPRISE SURVEY, ENTERPRISE SURVEYS, ENTREPRENEUR, ENTREPRENEURS, ENTRY BARRIERS, EXTENSION SERVICES, EXTERNAL SHOCKS, FARM ENTERPRISE, FARM ENTERPRISES, FARMERS, FEMALE ENTREPRENEURS, FINANCE ACCESS, FINANCIAL ACCESS, FINANCIAL CRISIS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL LITERACY, FINANCIAL MANAGEMENT, FINANCIAL POLICIES, FINANCIAL RESOURCES, FINANCIAL SERVICE, FINANCIAL SERVICES, FINANCING % OF ENTERPRISES, FISCAL DEFICIT, FOOD PROCESSING, FOOD SECURITY, FORMAL FINANCIAL INSTITUTIONS, FUEL, GENDER, GENDER DIFFERENCE, GENDER INEQUALITY, GENDER ISSUE, GOVERNMENT CONTRACT, GOVERNMENT REVENUE, GUARANTEE SCHEMES, HIGH INTEREST RATES, HOUSEHOLD HEAD, HOUSEHOLD HEADS, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, HOUSEHOLDS, HUMAN RESOURCE, HUMAN RESOURCE DEVELOPMENT, IMPORT LICENSE, INCOME INEQUALITY, INEQUALITY, INFORMAL FINANCING, INFORMATION ACCESS, INFORMATION ON MARKETS, INFORMATION ON PRODUCT, INFORMATION TECHNOLOGY, INNOVATION, INNOVATIONS, INSTALLMENTS, INSURANCE, INTEREST RATE, INTERNATIONAL BANK, INVESTMENT CLIMATE, INVESTMENT CLIMATE ASSESSMENT, INVESTMENT CLIMATE ASSESSMENTS, LABOR MARKET, LACK OF ACCESS, LAND OWNERSHIP, LEGAL SYSTEM, LICENSE, LICENSES, LIMITED ACCESS, LIMITED ACCESS TO FINANCE, LINE OF CREDIT, LOAN, LOAN APPLICATIONS, MANAGEMENT SERVICE, MANAGEMENT SERVICES, MANUFACTURING, MARKET ACCESS, MARKET COMPETITION, MARKET DEMAND, MARKET INFORMATION, MARKET OPPORTUNITIES, MARKET OPPORTUNITY, MARKETING, MATERIAL, MIGRANT WORKERS, MOBILE PHONE, MODE OF TRANSPORT, MONETARY POLICY, MONEY TRANSFER, NATURAL RESOURCE, OPEN ACCESS, PHONE, PHYSICAL CAPITAL, PILOT PROJECTS, POOR, POOR ACCESS, POOR INFRASTRUCTURE, POVERTY ASSESSMENT, POVERTY RATES, POVERTY REDUCTION, PRIVATE SECTOR, PRIVATE SECTORS, PRODUCTIVITY, PROFITABILITY, PROMOTION ACTIVITIES, PROMOTION OF WOMEN, QUESTIONNAIRES, RECENT LOAN, REINVESTMENT, RESULT, RESULTS, REVENUE MODEL, ROAD, ROADS, RURAL, RURAL AREAS, RURAL BUSINESS, RURAL BUSINESSES, RURAL DEVELOPMENT, RURAL ENTERPRISES, RURAL ENTREPRENEURS, RURAL FARM, RURAL INCOME, RURAL INCOME GENERATION, RURAL INVESTMENT, RURAL POPULATION, RURAL POVERTY, RURAL POVERTY LINE, RURAL POVERTY REDUCTION, RURAL SETTINGS, RURAL WOMEN, SAFETY, SAFETY NETS, SALES, SALES GROWTH, SMALL BUSINESS, SMALL ENTERPRISE, SMALL ENTERPRISES, SOCIAL DEVELOPMENT, SOCIAL PROTECTION, SOCIOECONOMIC BACKGROUND, SOURCE OF INCOME, SOURCES OF INCOME, START-UP, START-UP CAPITAL, TAX, TAX RATE, TAX RATES, TECHNICAL ASSISTANCE, TECHNICAL SUPPORT, TELECOMMUNICATION, TELECOMMUNICATIONS, TELEPHONE, TELEPHONE SERVICES, TRANSACTION, TRANSACTION FEES, TRANSPORT, TRANSPORT MARKET, TRANSPORTATION, URBAN AREAS, URBAN POPULATION, USES, WAGE, WAGES, WEALTH, WEB, WOMAN, WOMEN ENTREPRENEURS, WORKING CAPITAL, WORLD MARKETS,
Online Access:	http://documents.worldbank.org/curated/en/2012/07/16492415/promoting-rural-farm-nonfarm-businesses-evidence-yemen-rural-investment-climate https://hdl.handle.net/10986/11951
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