Understanding the dynamics of household enterprises in Egypt: Birth, death, growth and transformation

Abstract

Despite the importance of household enterprises in employment in developing economies, little is known about their creation, survival and growth. This article examines the dynamics of household enterprises, using panel data for the period 1998–2018 in Egypt. The analysis explores the individual, household and enterprise characteristics that contribute to these dynamics. The findings show that high rates of enterprise creation and closure in the household enterprise sector drive employment, more so than dynamics of growth in existing enterprises. Household enterprises may be a fallback or survival strategy for less educated and less privileged workers, but may also provide an opportunity for accumulating wealth.