Home-based Enterprises Research Articles

Reinforcing Traditional Values: Social, Spatial and Economic Interactions in an Indonesian Kampung

Traditional environments consist not only of physical buildings and spaces but also the people and their activities which take place within them. This paper examines some aspects of the interrelationship between people and places. Traditional social values are believed to be undermined by the harsh imperatives of survival in the expanding urban areas of the developing world. The collaborative nature of many rural societies can be contrasted with the hard, individualistic and competitive character of life in developing cities. Unregulated, urban, economic processes in particular are assumed to be antagonistic towards gemeinschaft ideals because the logic of the market has little respect for non-monetary values. However one of the key characteristics of many informal economies is the ability of participants to draw creatively and flexibly on all potential resources: human, material and spatial. This is particularly evident in households and settlements where a significant proportion of the economic activity is within micro scale, home-based enterprises (HBEs). By blurring and re-configuring the spatial and conceptual boundaries between work and home, between production and reproduction, many households are able to generate income to sustain themselves. Intrinsic to these processes are the linkages and exchanges between neighbours and residents, many of which are based on cultural and religious value systems which can be supportive of the economic activities taking place. This paper will explore aspects of the interrelationship between economic and social processes through the use of empirical data collected during periods of participant observation in a consolidated informal urban settlement (kampung) in the city of Surabaya, Indonesia. Detailed household case studies will be used to illustrate how income generation activities are embedded within social networks and how in many cases traditional collaborative cultural values directly reinforce economic production. This is echoed in the use of space, particularly the overlapping and shared use of streets and alleyways. The paper concludes that despite severe economic constraints many traditional values facilitate survival in times of crisis and can be conducive to longer term sustainability.

The place of home-based enterprises in the household economics of the low-income families in Kumasi: analysis of contributions and linkages

The place of home-based enterprises in the household economics of the low-income families in Kumasi: analysis of contributions and linkages

Employment and work conditions in home-based enterprises in four developing countries: do they constitute ‘decent work’?

In a study undertaken from a context of urban plann ing policy, we have been able to gather support for the contention that home-based e nterprises (HBEs) represent a better picture in respect to the ILO concept of ‘de cent work’ than might be expected, especially from the literature on homeworkers. Whil e home-working and some production undoubtedly represent conditions that do not contribute to decent work, HBEs score well on ensuring sufficient work and gen erating adequate incomes but less well on workers’ rights. Overall, they probabl y represent at least as good a work option as locally available, formal sector employme nt opportunities. We argue that their contribution to income and employment opportunities are, however, so important that there should be a change from the unhelpful of ficial stance normally taken to HBEs and largely justified by their perceptions of poor working and environmental conditions.

Transcending Gendered Economics: Grassroots Women’s Agency in the Informal Sector of the Ghanaian Economy

GHANA STUDIES / Volume 9 ISSN 1536-5514 / E-ISSN 2333-7168© 2008 by the Board of Regents of the University of Wisconsin System 151 TRANSCENDING GENDERED ECONOMICS Grassroots Women’s Agency in the Informal Sector of the Ghanaian Economy AGNES ATIA APUSIGAH Introduction The informal sector has steadily become an attractive part of Ghana’s economic growth. Its role as a production base, generator of incomes and employment , and an alternative economic site, has found appeal even under structural adjustment and globalization. Studies on that sector track the increasing informalization of the economic system to highlight the myriad disadvantages faced by operators (Hansen, 2004; Hutchful, 2002; WIEGO, 2002; Beneria, 2001). Hutchful (2002: 21), who defines the informal sector as spanning “an extremely diverse range of products and activities and involves unrecorded though open transactions, which are unregulated and non-legal rather than illegal,” positions it as a fall-out of the socio-­economic crisis under adjustment. He identifies its main features to include “its predominantly artisanal nature; its ease of entry and often (though not necessarily) marginal operation; the prevalence of non-contractual (and thus often highly exploitative) relationships; and the coexistence of waged, partially waged, and family forms of labor.” (ibid.) In particular, as an arena where vulnerable groups find space to support their livelihoods, the informal sector is subject to the machinations of socio-­economic systems that thrive on exploitation and domination (Chen, Vanek & Carr, 2004; WIEGO, 2002; Bangasser, 2000). Within the domestic 152 Ghana Studies • volume 9 • 2006 arena, this is manifested in the use of women’s and children’s free or unpaid labor and enterprise in the care economy and the household production system. Beyond the domestic, various studies are critical of the exploitative manner by which the growing informalization of economic liberalization in the form of contract work and home-based enterprises and their attendant job insecurity, forced labor, sweat shops and starvation wages, have become mechanisms for human rights abuses and unequal sharing of benefits (Hansen & Vaa, 2004; Chen, et. al, 2004, WIEGO, 2002; Beneria, 2001, Bangasser, 2000). In spite of the exploitative nature of economic informalization, especially with regard to labor relations, the informal sector remains an important complement to and even critical part of economic systems (Hutchful, 2002; Aryee, 1996; ILO, 1993). Undoubtedly, there are many weaknesses but also strengths in the informal sector. The evidence is clear on the problematic nature of that sector. While not denying the exploitative nature of the growing informalization of labor (but also production processes), this analysis shifts the focus from viewing the informal sector as a problematic site, to that of agency. It positions the informal sector as a site where women exercise socio-economic agency, although it does not assume that such agency makes them immune to the marginalizing and exploitative aspects that have been brought out in several studies (Chen, et. al; Beneria, 2001; Awumbila, 2001; Bangasser, 2000). Specifically, I examine the transcendental effects of grassroots women’s agency as they position themselves in the informal sector as key actors who complement actions and programmes in the formal sector. While some researchers have couched this as survivalist (Awumbila, 2001; Clark, 1994), I take the position that beyond survival, resignation and/or disengagement, women have actually exhibited a sense of agency in the kinds of entrepreneurial creativity or ingenuity characteristic of that sector. I examine the ways in which grassroots women, in spite of their socio-cultural limitations carve niches within which they exercise agency and support their livelihoods . I begin with an examination of the gendered nature of the Ghanaian Apusigah • Transcending Gendered Economics 153 economy to pave way for discussions on the transcendental efforts of grassroots women with a focus on their achievements and challenges in order to make proposals for change. The Gendered Nature of the Ghanaian Economy The Women’s Manifesto of Ghana, a comprehensive political document by Ghanaian women activists that sets out an agenda for promoting gender equality and women’s rights in Ghana, traces the challenges of women in the Ghanaian economy to discriminatory policy and gendered social systems that take undue advantage of, and under-reward, women’s labor , while limiting their access to equal opportunities. It...

The Place of Home-based Enterprises in the Informal Sector: Evidence from Cochabamba, New Delhi, Surabaya and Pretoria

Home-based enterprises (HBEs) are an accepted component in the informal sector in rapidly developing cities. However, they have generally received quite a bad press, especially through a concentration on the exploitation evident in piece-rate homework. From our work in low-income neighbourhoods in Cochabamba (Bolivia), New Delhi (India), Surabaya (Indonesia) and Pretoria (South Africa), we assess HBEs with respect to the characteristics of the informal sector put forward in the literature. We examine our samples of HBEs against such characteristics as small, low operator incomes, informal labour relations and non-separation of production and consumption. We find that they largely conform to expectations. Incomes are low but they are very significant in poverty alleviation. Although many HBEs require few skills, a few compete effectively in international markets.

Pollution and Waste Production in Home-Based Enterprises in Developing Countries: Perceptions and Realities

Using mainly qualitative data from a four country case study, this paper describes the nature of home-based enterprises (HBEs) and the wastes that they produce. It finds that most only generate material similar to domestic wastes, but in greater quantities. While some are undoubtedly generating dangerous wastes, they are only a small proportion of all HBEs and tend to be aware of at least some of the problem and take mitigating steps. The paper argues that the encouragement of clean processes should replace the usual negative views about HBEs that are held by policy makers.

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

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.

Making a Living in African Cities: The Role of Home-based Enterprises in Accra and Pretoria

As formal sector employment becomes an increasingly remote prospect for many Africans, the importance of informal income-generating activities which operate from the home are being recognized. This paper compares and contrasts home-based enterprises (HBEs) in low-income settlements in Accra and Pretoria. It analyses which types of enterprises operate, their contribution to household livelihoods, and the limits to growth that they face. It is shown how in both cities HBEs are widespread, provide an important place of work especially for women, and contribute significantly to household income. Despite these similarities, the HBEs are operating in differing circumstances with the fear of violence and property crime being a prominent aspect of South African HBEs whilst being negligible in Ghana.

Home-based work in Nigeria: enabling or debilitating homes?

Increasingly, middle-high income literate women (apart from low-income illiterate/semi illiterate women, who dominate the informal trading sector) in Nigeria are becoming involved in home-based enterprises to supplement their regular monthly incomes. Not only poor low-income families but also struggling middle-income families are engaged in working at home or in home-based enterprises. The latter category tends to live in low-density wealthy parts of the city, for example, in Bodija, in Ibadan, Nigeria.

Denied Reality, Retarded Perception or Inaction?

In Nigeria, the notion of the house or dwelling as a mono-functional (residential) unit is quite dominant and it forms the basis of housing policies as well as physical planning strategies. Yet, field evidence emerging from the cities presents a contrasting image of the house as a workplace. This reveals a gap between the official perception of the house and housing needs on one hand and what they are in reality. Against this background, the paper reviews the responses of government and its agencies to the incidence of home-based enterprises (HBEs) and its housing corollary with a view to gauging their reactions to this inescapable feedback. The paper discovers that HBEs and other urban informal enterprises are still neglected in official circles. Direct planning intervention by government agencies are seldom, haphazard, and very inconsistent because of the absence of well defined guidelines and strategies for dealing with this peculiar physico-economic phenomenon. The recommendations put forward here reiterate the need to tackle this reality with the right attitude and appropriate actions.

Squatter Rehabilitation Projects that Support Home-Based Enterprises Create Jobs and Housing

Abstract This paper examines how home-based enterprises (HBEs) in squatter settlements benefit from rehabilitation. High unemployment and lack of affordable housing for the urban poor are some of the most pressing problems in less developed countries. To curb both problems, international donor agencies urge governments to employ policies that combine shelter provision with job creation. Such policies can relax building codes, making housing affordable and remove barriers that inhibit the growth of the informal sector. Governments are also encouraged to cooperate with non-governmental organizations, community based organizations and residents in an effort to create jobs and provide affordable housing. Mathare 4A Housing Project is employing such policies and has managed to produce upgraded and affordable shelter by relaxing building codes and using inexpensive, local building materials. The Project supports existing HBEs, creates jobs and raises standards of living. The rehabilitated enterprises have better shelter and infrastructure, are more efficient, accessible and competitive, and have diversified the neighborhood economy.

Push and pull factors in the initiation and maintenance of home work in two Pretoria settlements

The interpretation of home -based enterprises by South African researchers has tended to be that they are invariable initiated when people lose formal employment and are ‘pushed’ into the informal sector involuntarily. In their ongoing functioning, home-based enterprises are also portrayed as marginal and vulnerable. Because of this interpretation, there has been a limited understanding of the role played by home -based enterprises in informal settlements, and in the national economy. The findings from a Pretoria case study suggest that around 80% of the people interviewed started businesses because they wanted to, and not because they had no oth er option. Many of these businesses were started because an opportunity was identified in the settlement. In other words, many people have been ‘pulled’ into such activity as a strategy both to improve earnings and to provide a service that is needed in the settlement. People’s reasons for entering the informal sector and the ongoing viability of their enterprises is discussed in this paper using evidence from qualitative interviews in two Mamelodi settlements (both sites and service and informal). Thirty people were sampled from the one hundred and fifty people who were interviewed in quantitative research. Four interviews will be referred to in detail, and key statistics used from the quantitative study. Thus the purpose of this paper is to re-examine some of the myths, and to establish the realities, of home -based enterprises in South Africa. The role of such enterprises at a settlement level and at a national level will be explored. The paper will conclude by examining what this altered view of home-base enterprises implies for policy makers and regulators trying to stimulate and support small, medium and micro enterprises (SMMEs).

International Conference on Housing, Work and Development: The Role of Home-Based Enterprises

The International Conference on Housing Work and Development: The Role of Home- Based Enterprises (HBEs) was held in April 2000 at the University of Newcastle upon Tyne UK. By bringing together knowledge and experience from around the world a broad range of issues relevant to HBEs was addressed. The conference took a critical approach to existing policies on working in the home and generated guidelines to be promoted through international agencies. Discussions covered many aspects including: the role of HBEs in the national economy; legislation and working conditions; functioning of these enterprises; the space time and labor used for them. HBE programs were assessed and improvements suggested. The effects of HBEs on housing settlements and the living environment and the effect of the environment on HBE working conditions were both discussed and methods to improve the environment and the working conditions were suggested. Gender issues repeatedly came up in all these general discussions because most HBE workers are women. This article reports on the proceedings of the conference.

International Conference on Housing, Work and Development: The Role of Home-Based Enterprises

International Conference on Housing, Work and Development: The Role of Home-Based Enterprises

Compliance with urban development and planning regulations in Ibadan, Nigeria

This paper investigates the extent to which private residential development complies with urban development and planning regulations in the city of Ibadan, Nigeria. Findings indicate that while the average household is aware of the existence of planning regulations, this does not necessarily translate into compliance with these regulations. Further analysis reveals that the most violated aspects of building regulations are plot coverage, setback stipulations, room size, provision of utilities, as well as a change of use from a wholly residential use to the incorporation of home-based enterprises. The factors explaining the relatively low levels of compliance with these regulations include: the institutional context of urban development and planning regulations; the administrative machinery for physical planning implementation which does not make for inter-agency coordination; poverty of the general populace; and the disdain and apathy of the public towards formal planning institutions in the city. Finally, the paper calls for a reappraisal of urban development and planning regulations in Nigeria. This should entail modification of these regulations to take cognizance of present day realities and local conditions; review of existing land policy in order to remove the bottlenecks that hinder the smooth acquisition of land; improved inter-agency coordination among planning institutions; and public participation in the planning process.

The home as workplace: a study of income-generating activities within the domestic setting

Many studies of housing concentrate on the dwelling as a place of shelter for the household, as a unit of accommodation and as a key setting for social reproduction. However, in many parts of the world the dwelling is also a place of production: some or all of the household members may be involved in income-generating activities, ranging from small-scale, part-time tasks with few specific spatial demands, to manufacturing activities which may dominate the dwelling environment. This paper draws on a pilot research study into the housing implications of home-based enterprises undertaken in a squatter settlement in New Delhi, India. In addition to a questionnaire survey, detailed case histories of selected households’ work and housing situations were recorded, and plans of dwellings drawn. Drawing on this data, the paper examines the spatial and social implications of income-generating activities and discusses how an analysis of the integration of non-domestic activities can inform and broaden our understanding of the meaning of home.

The home as workplace: a study of income-generating activities within the domestic setting

Many studies of housing concentrate on the dwelling as a place of shelter for the household, as a unit of accommodation and as a key setting for social reproduction. However, in many parts of the world the dwelling is also a place of production: some or all of the household members may be involved in income-generating activities, ranging from small-scale, part-time tasks with few specific spatial demands, to manufacturing activities which may dominate the dwelling environment. This paper draws on a pilot research study into the housing implications of home-based enterprises undertaken in a squatter settlement in New Delhi, India. In addition to a questionnaire survey, detailed case histories of selected households’ work and housing situations were recorded, and plans of dwellings drawn. Drawing on this data, the paper examines the spatial and social implications of income-generating activities and discusses how an analysis of the integration of non-domestic activities can inform and broaden our understanding of the meaning of home.

Home-based vocational agriculture student enterprises: the experience of a developing country

The student enterprise project provides an interesting and challenging vehicle for the acquisition and assessment of varied technical and managerial skills. It links classroom instruction and the working world. This article profiles home-based vocational agriculture enterprises in a pilot curriculum. Both students and teachers experience challenges pertaining to the operating and supervising of small agrarian business enterprises.

Home-based Enterprises in Low-income Settlements; Evidence from Pereira, Colombia

Abstract Danish Journal of Geography 96: 95–102, 1996. It is now widely recognised that low-income households in Third World cities often use their homes not only as a means of shelter, but also as a source of income. This paper focuses on the types of enterprises found in five low-income neighbourhoods in the intermediate sized city of Pereira, Colombia. It is argued that it is necessary not only to recognise the importance of home-based enterprises for the economies of low-income households, but also to consider how these enterprises vary between households and over time. As the nature of both individual household circumstances and of neighbourhoods alter over time, so do the types and number of home-based enterprises operating.

Home-Based Enterprises in Cities of Developing Countries

Dwellings can provide not only shelter and amenities but also an income through rental space or use as a shop. Such income helps to finance the dwelling and its improvement. But policymakers have often opposed work-at-home urban design because of devotion to unifunctional land use theories and because of a moralistic bias against private economic gain from social housing support. Moreover, home businesses are thought to be unproductive sweatshops with no future. Yet these capital-generating, capital-saving home enterprises remain almost as widespread in LDCs as they were in Europe before the Industrial Revolution. Briefly in vogue during the 1950s, cottage industries faded from popularity after the wasteful experience in India. Stress on the informal sector came after 1971 but has not been concerned with the location of small enterprises. The thesis of this article is that location and related costs and opportunities do matter and that better policies can improve income, employment, and housing. I begin with a review of the literature and note that, except for economic historians, most writers have ignored location. With data from Peru, Sri Lanka, and Zambia, I show that home-based enterprises (HBEs) mobilize resources effectively and increase national product. Although they are more than merely redistributive, their proliferation is nevertheless consistent with more equitable income distribution. In most countries, HBEs will proliferate before declining in numbers, but some types will fare better than others. Examining the data, I found that classification of types should be not only in terms of specific products or services but should also take into account traits of the household and its neighborhood. I will show how the changing composition of HBEs is related to their competitiveness or complementarity with the modern sector. What is their share of employment and their contri-