Business incomes in rural Nicaragua: the role of household resources, location, experience and trust

M.F.C. D'Haese, M.J.M. de Ruijter de Wildt, R. Ruben

Research output: Contribution to journalArticleAcademicpeer-review

4 Citations (Scopus)

Abstract

This paper analyses the determinants of business income for rural households in Nicaragua. A sample of 1030 households was studied in order to assess the importance of material and behavioural factors that influence income from business activity. The households are involved in manufacturing, trade, services or have a mixture of businesses. They generally have a low income and asset value. Households supplement their income from wages and agricultural activities. To estimate non-farm business income per employed person we analyse the impact of resources, location, entrepreneurial experience and trust. Our results show that household resources and entrepreneurial experience are significant determinants for business income in all sectors. Trust is also important, particularly generalized trust. The contribution of other forms of trust, such as institutional trust, depends on the sector in which households participate.
Original languageEnglish
Pages (from-to)345-366
JournalEntrepreneurship & Regional Development
Volume20
Issue number4
DOIs
Publication statusPublished - 2008

Keywords

  • nonfarm employment
  • developing-countries
  • latin-america
  • network
  • growth
  • firm
  • industrialization
  • enterprises
  • governance
  • innovation

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