Assessing the relationship between household characteristics and household entreprises in the central region, Uganda

Abstract

Despite 40 percent of households relying on household enterprises (non-farm enterprises operated by a single individual or with the help of family members) as an income source, household enterprises are usually ignored in low-income Sub-Saharan-African development strategies. In Uganda both pre and during COVID-19, households that had at least a non-crop enterprise were more likely to have better incomes relative to their counterparts without such enterprises. With unemployment levels expected to hit 3.01 by year end 2022, household enterprises have a significant role in the betterment of the economy as it would provide an alternative source of additional income to agriculture as the government pushes its agenda of industrialization and urbanization. A bivariate logistic model is applied to account for the participatory decision of households in entrepreneurship, the results showed that the income level of a household significantly impacted the household's participation, with those with somewhat stable income level more likely to have enterprises than those with unstable or stable income as these enterprises identified as survival employment opportunities. House hold size significantly impacted household enterprise participation with medium sized household more likely to engage in non-farm activities. Education levels were insignificant and this was mainly because non-farm enterprises do not generally require any formal education. Access to credit was marginally significant due to the non-entrepreneur basis of acquisition. For relevant policy development to occur, a proper understanding of the significant household determinants of household entrepreneurship and this is the intent of this study as it establishes the relationship of the most influential predictors of household entrepreneurship and provides insights basing on the actual environment in the country.