Settlement upgrading and home-based enterprises: discussions from empirical data

Abstract

This paper seeks to add to the sparse literature on the relationship between home-based enterprises (HBEs) and upgrading by interrogating data in four surveys of 150 HBE operating households carried out in a DFID sponsored study in Cochabamba, New Delhi, Surabaya and Pretoria. It finds that HBEs increase income substantially, and provide services, such as local shops, that should be regarded as essential for low-income households. The evidence on the effect of better servicing on HBEs is generally positive. The spatial implications of HBEs are complex. Their presence takes away domestic space and this is found to be important where space is very scarce (in Delhi). The paper suggests that upgrading should introduce service levels suitable for considerable HBE activity and, in very crowded conditions, consider measures to increase dwelling size where possible.