Improving the Rural Investment Climate for Businesses

An appropriate rural investment climate (RIC) is essential for rural businesses to be successful and generate employment and income in their communities. Improving the investment climate could facilitate income-generation activities in both farm and nonfarm sectors, thus reducing rural poverty. Nonfarm sector focused growth, combined with agricultural growth, and has been shown by Delgado et al. (1998) to have a significant impact on the local economy through the generation of employment and income. This study is the first to focus on both farm and nonfarm enterprises in its 2010 surveys of RIC in Yemen, Burkina Faso, Nigeria, and Mozambique unlike six previous RIC assessment (RICA) pilot projects that focused only on nonfarm enterprises. This report assesses the weaknesses and strengths of all RIC components in farm and nonfarm enterprises of the four countries surveyed, and recommends measures to address the weaknesses. The report identifies similar business obstacles for farm and nonfarm enterprises and four critical areas of the RIC to be improved. The results of the RICA are based on analyses of obstacles perceived by rural entrepreneurs and on assessments by RIC indicators, enterprise entry and exit, and enterprise performance. To have maximum synergy effects, farm and nonfarm enterprises should be promoted together.

Bibliographic Details

Main Author:	Sawada, Naotaka
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-02
Subjects:	ACCESS ROADS, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FINANCING, ACCESS TO INFORMATION, ACCESS TO LOAN, ACCESS TO MARKET, ACCOUNTING, AFFORDABLE TRANSPORTATION, AGRICULTURAL ECONOMICS, AGRICULTURAL PRODUCTS, ALTERNATIVE EMPLOYMENT, ASSISTANCE TO BUSINESS, BANK ACCOUNT, BANKRUPTCY, BANKS, BENEFICIARIES, BORROWING, BOTTLENECKS, BRIDGE, BRIDGE CONSTRUCTION, BUREAUCRATIC RED TAPE, BUS, BUSINESS ACTIVITIES, BUSINESS ENTRY, BUSINESS MANAGEMENT, BUSINESS OPERATIONS, BUSINESS OPPORTUNITIES, BUSINESS OWNERS, BUSINESS PLAN, BUSINESS PLANNING, BUSINESS SUPPORT, CALCULATION, CAPACITY BUILDING, CARS, COLLATERAL, COLLATERAL REQUIREMENT, COMMERCIAL BANKS, COMMODITY, CONSUMER, CONTRIBUTION, CORRUPTION, COST OF TRANSPORT, COST OF TRANSPORTATION, COST-BENEFIT ANALYSIS, CREDIT GUARANTEE, DELIVERY MECHANISM, DIVERSIFICATION, DRIVERS, EARNINGS, ECONOMIC ACTIVITY, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC MANAGEMENT, ECONOMIES OF SCALE, EDUCATION LEVELS, ENTERPRISE DEVELOPMENT, ENTERPRISE GROWTH, ENTREPRENEURS, ENTREPRENEURSHIP DEVELOPMENT, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL PROTECTION AGENCY, EXCLUSION, EXTENSION SERVICES, FARM ENTERPRISES, FARMERS, FEMALE ENTREPRENEURS, FINANCE ACCESS, FINANCIAL ILLITERACY, FINANCIAL INSTITUTION, FINANCIAL LITERACY, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCIAL PRODUCTS, FINANCIAL SYSTEM, FISCAL POLICY, FIXED ASSET, FORMAL BANKING, FORMAL FINANCIAL INSTITUTIONS, FORMAL FINANCIAL SERVICES, FUTURE GROWTH, GENDER, GENDER EQUALITY, GENDER ISSUE, GUARANTEE SCHEME, HANDICRAFT, HIGH INTEREST RATE, HIGH TRANSPORTATION, HOUSEHOLD EXPENSES, HOUSEHOLD INCOME, HOUSEHOLDS, HUMAN CAPITAL, INCOME INCREASE, INCOMES, INDIVIDUAL ENTREPRENEURS, INEQUALITY, INFORMATION ON MARKETS, INFORMATION TECHNOLOGY, INSTITUTIONAL SUPPORT, INSURANCE, INTEREST RATES, INTERNATIONAL BANK, INVENTORY CREDIT, INVESTING, INVESTMENT CAPITAL, INVESTMENT CLIMATE, INVESTMENT CLIMATE ASSESSMENT, INVESTMENT STRATEGY, JOB TRAINING, KNOWLEDGE GAPS, LABOR MARKET, LACK OF ACCESS, LACK OF CAPITAL, LACK OF KNOWLEDGE, LAND MARKETS, LAND USE, LIMITED ACCESS, LIMITED ACCESS TO FINANCE, LINE OF CREDIT, LOAN, LOAN AMOUNT, LOAN APPLICATIONS, LOCAL BUSINESSES, MACROECONOMIC STABILITY, MARKET DEMAND, MARKET DEVELOPMENT, MARKET INFORMATION, MARKET SHARE, MARKETING, MATERIAL, MEANS OF TRANSPORT, MICRO-ENTREPRENEURS, MICROFINANCE, MICROFINANCE INSTITUTIONS, MICROFINANCE LOANS, MOBILITY, MODE OF TRANSPORT, MONEY TRANSFER, NEW BUSINESS, NEW MARKET, OUTREACH, OUTSTANDING LOANS, PARTIAL CREDIT, PENETRATION RATE, PRIVATE ENTERPRISE, PRODUCTIVITY, PROFITABILITY, PROPERTY RIGHTS, PUBLIC AWARENESS, PUBLIC SERVICE DELIVERY, PUBLIC TRANSPORTATION, QUERIES, QUESTIONNAIRES, RISK REDUCTION, ROAD, ROAD BUILDING, ROAD NETWORK, ROADS, RURAL BUSINESS, RURAL FINANCE, RURAL INFRASTRUCTURE, RURAL ROADS, RURAL TRANSPORT, SAFETY, SAFETY NETS, SALES, SAVINGS, SAVINGS ACCOUNT, SMALL BUSINESS, SMALL BUSINESS AGENCIES, SMALL ENTERPRISE, STAKEHOLDER, START-UP, START-UP CAPITAL, SUPPLY CHAIN, TAX, TAX RATE, TECHNICAL ASSISTANCE, TECHNICAL SKILLS, TELEPHONE, TRAFFIC, TRAINING PROGRAMS, TRANSACTION, TRANSACTION COSTS, TRANSPORT, TRANSPORT COSTS, TRANSPORT IMPROVEMENT, TRANSPORT SERVICES, TRANSPORTATION COST, TRANSPORTATION SYSTEM, TRANSPORTS, TRAVEL TIME, TRUCKS, URBAN AREAS, VALUABLE, VEHICLES, WAGE, WAGES, WEALTH, WEALTH CREATION, WOMEN ENTREPRENEURS, WORKING CAPITAL, WORTH,
Online Access:	http://documents.worldbank.org/curated/en/279561468203676596/Improving-the-rural-investment-climate-for-businesses-key-to-rural-income-generation https://hdl.handle.net/10986/26897
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