# **Appendix A. Tables and Figures**

## **Table A.1. Definition of the Variables**

|**_Variable_**|_Description_|
|---|---|
|_Owner characteristics_<br>Age|Age of firm's owner, years|
|<br>Male|<br>Takes value of 1 if entrepreneur is a man|
|Can read in any language|"Yes" responded to the question, "Do you know how to read in any language?"|
|Can write in any language<br>|"Yes" responded to the question, "Do you know how to write in any language?"<br>|
|Education|Measured by highest diploma achieved in school system|
|No other opportunity in large firm|<br>Entrepreneur created business because s/he could not find paid job in large firm|
|No other opportunity in small firm|Entrepreneur created business because s/he could not find paid job in small firm|
|By family tradition|Entrepreneur created business by family tradition|
|<br>Trade register|<br>Entrepreneur keeps a trade register on her/his activity|
|<br>Business association|<br>Entrepreneur is a member of business association relevant to her/his activity|
|Financial knowledge|Takes the value of 1 if entrepreneur knows some microfinance institutions|
|Income per adult equivalent<br>|Per adult equivalent expenditure, adjusted for provincial price differences<br>|
|Poor|Takes value of 1 if entrepreneur is poor and 0 otherwise|
|_Household characteristics_||
|Size|Number of all household members|
|Wage earner is a woman|The wage earner in the household is a woman|
|<br>Wage earner is a man|<br>The wage earner in the household is a man|
|_Firm characteristics_||
|Age|Age since firm was established|
|Set up with one person|Firm was established by one person|
|<br>No capital|<br>Firms operates without any physical capital|
||<br>Replacement value of all business-related assets that have been used to operate the|
|Capital|enterprise in the last year, including the business establishment, machines, furniture,<br>vehicle, and utilities<br>|
||Gross profit measured as sales turnover, excluding taxes, minus amount of tax-free costs|
|Gross operating surplus|<br>of inputs (raw materials, merchandise), minus purchase amount, excluding services taxes,|
||minus taxes, minus cost of payroll|
|Annual value added|<br>Value added measured as turnover, minus the costs for intermediate inputs|
|Total annual hours|Self-reported total number of hours worked in firm in last 12 months|
|Hired paid workers|Number of hired staff who are paid|
|Nonpaid workers|Number of nonpaid staff in firm|
|<br>Size|<br>Number of total workers in firm|
|Self-employment|Firm is staffed by one person|
|Lack of credit access|Takes value of 1 if firm has poor access to credit|
|Lack of customers|Takes value of 1 if firm encounters problems to sell (lack of customers)|
|Management problem|<br>Takes value of 1 if firm encounters management problems|
|<br>Discipline problem|<br>Takes value of 1 if employee discipline issues in firm|
|Lack of qualified workforce|Takes value of 1 difficulties in recruitment of qualified workforce|
|Lack of equipment|Takes value of 1 if firm encounters lack of equipment issues|
|<br>Location problem|<br>Takes value of 1 if lack of space in firm and/or unsuitable location|
|Water connection|Water connection available in firm|
|Electricity connection|Electricity connection available in firm|
|<br>Telecommunication|<br>Telephone connection available in firm|
|Street serves as location|<br>No fixed location for activity|
|Mobile (improvised) street location|<br>No fixed location for activity|
|Fixed street location|Entrepreneur operates her/his activity on street|
|<br>Vehicle serves as location|<br>Firm located in a vehicle|
|Customer’s home serves as location<br>Firm located at home|Activity operated in customer’s home<br>Firm located at home (with/without amenities)|
|Fixed location in market|Fixed location in market|
|<br>Improvised location in market|<br>Improvised location in market|
|<br>Shop, restaurant|<br>Firm is shop or restaurant|
|Other location|Any other type of location not listed above|
|Sector dummies|Take value of 1 if firm is in respective sector (exclusive); zero otherwise|
|Regional/Provincial dummies|<br>Take value 1 if firm is in respective region/province (exclusive); zero otherwise|

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