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|| How does Energy Matter? Rural Electrification, Entrepreneurship, and Community Development in Kenya
|| Antoine Vernet, Jane N.O. Khayesi, Vivian George, Gerard George & Abubakar S. Bahaj
| Published in:
|| August 2019
|| This paper examines the impact of rural electrification on individuals and businesses within a community in order to test a resource-based theory of entrepreneurship. It shows that access to electricity increases average households' income and entrepreneurial activities.
The impact of electricity on entrepreneurial activity has wide-ranging implications for development policy in countries where access to electricity is sparse. Results show a significant difference in entrepreneurial opportunities with respect to firm formation, with the electrified site reporting more new micro-enterprises than the control site after implementation.
Electrification affects both households' income, individuals' perceptions of their social position, and opportunities for business development. Individuals' future expectations and entrepreneurial activities are enhanced in the community that receives electricity.
The paper also finds evidence that women-led households benefit from electrification more than men-led ones, but this benefit does not eliminate the difference in income between women and men-led household.
|| link to the document |