Publication Type

Journal Article

Version

publishedVersion

Publication Date

3-2019

Abstract

We examine the impact of rural electrification on individuals and businesses within a community in order to test a resource-based theory of entrepreneurship. We show 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. We also find 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. We discuss implications of the study for entrepreneurship and community social development interventions.

Keywords

Entrepreneurship, Experiment, Community development, Rural electrification, Kenya, Microenterprise

Discipline

African Studies | Agribusiness | Agricultural and Resource Economics | Entrepreneurial and Small Business Operations

Research Areas

Strategy and Organisation

Publication

Energy Policy

Volume

126

First Page

88

Last Page

98

ISSN

0301-4215

Identifier

10.1016/j.enpol.2018.11.012

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.enpol.2018.11.012

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