Performance of family microenterprise in Peru

Abstract

Two out of every three jobs in Peru are generated in the self-employment and household microenterprises. This study uses the «Self-employment Income» module in non-agricultural household enterprises in the Peruvian National Household Surveys, between 2002 and 2006, and estimates an array of empirical models aimed at explaining differences in levels and growth rates of real incomes in these endeavours. There is a set of robust results from complementary methodologies. First of all, labour experience and educational attainment of the entrepreneur have positive impacts on real income. Likewise, business legal registration and functioning in a fixed location are also important factors for the sustainability of the microenterprises over time.