Resource information
This study examines the major
constraints of rural business entry and performance in
Yemen. The Yemen rural investment climate survey made it
possible to analyze rural investment climate constraints for
rural businesses. The survey was used to investigate both
farm and nonfarm rural enterprises. The rural investment
climate was assessed using a combination of subjective
impressions related by rural entrepreneurs, and a more
objective, empirical set of analyses that employed
indicators to rank the constraints to "doing
business" in the areas surveyed. These empirical
analyses included application of the entry model, the
performance model, the closure model, and the migration
model. The migration model was introduced to identify how
the rural investment climate variables at the community
level increase migration and economic activities. Based on
the assessment of the rural investment climate, this paper
identifies and explains four critical areas in which the
rural investment climate in Yemen can be improved: market
demand, access to markets, access to finance, and the
provision of business services. Because farm and nonfarm
businesses often experience common or similar constraints,
the climate in which they operate can often be improved with
the same measures and policies. Addressing the constraints
that affect rural women entrepreneurs in particular, who
play a vital role in rural nonfarm enterprises, warrants
clear priority as a means to generate income and employment.
Security and labor issues are identified as the key such
constraints that disproportionately affect women.
