• TABLE OF CONTENTS
HIDE
 Front Cover
 Abstract
 Comparison of stores and restaurants...
 Gender and markets
 Major problems of home-based stores...
 Is the contribution trivial?
 Conclusion
 Appendix
 Notes
 Tables
 Back Cover














Group Title: Working papers - Women in International Development, Michigan State University ; no. #86
Title: Home-based restaurants, snack bars, and retail stores
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00086786/00001
 Material Information
Title: Home-based restaurants, snack bars, and retail stores their contribution to income and employment in Lima, Peru
Series Title: Working paper Women in International Development, Michigan State University
Physical Description: 14 p. : ; 28 cm.
Language: English
Creator: Strassmann, W. Paul ( Wolfgang Paul ), 1926-
Publisher: Women in International Development, Michigan State University
Place of Publication: East Lansing MI USA (202 International Center East Lansing 48824-1035)
Publication Date: c1985
 Subjects
Subject: Restaurants -- Peru -- Lima   ( lcsh )
Stores, Retail -- Peru -- Lima   ( lcsh )
Home-based businesses -- Peru -- Lima   ( lcsh )
Income -- Peru -- Lima   ( lcsh )
Labor supply -- Peru -- Lima   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
Spatial Coverage: Peru
 Notes
Statement of Responsibility: W. Paul Strassman.
General Note: "May, 1985."
Funding: Working paper (Michigan State University. Office of Women in International Development) ;
 Record Information
Bibliographic ID: UF00086786
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 12272100
lccn - 86621199

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Abstract
        Abstract
    Comparison of stores and restaurants with other home businesses
        Page 1
        Page 2
    Gender and markets
        Page 3
        Page 4
    Major problems of home-based stores and cafes
        Page 5
    Is the contribution trivial?
        Page 6
    Conclusion
        Page 7
        Page 8
    Appendix
        Page 9
        Page 10
    Notes
        Page 11
    Tables
        Page 12
        Page 13
        Page 14
    Back Cover
        Page 15
Full Text





WORKING PAPERS






HOME-BASED RESTAURANTS, SNACK BARS, AND
RETAIL STORES: THEIR CONTRIBUTION TO
INCOME AND EMPLOYMENT IN LIMA, PERU
W. Paul Strassmann
Michigan State University
Working Paper #86
May, 1985


MICHIGAN STATE UNIVERSITY


























































Copyright 1985, MSU Board of Trustees



















HOME-BASED RESTAURANTS, SNACK BARS, AND
RETAIL STORES: THEIR CONTRIBUTION TO
INCOME AND EMPLOYMENT IN LIMA, PERU

W. Paul Strassmann
Michigan State University

Working Paper #86
May, 1985














Abstract: Evidence from a 1983 survey of 1,706 home businesses in Lima,
Peru, shows that 908 home-based retail stores, restaurants, cafes, bars, and
the like, generate as much or more output with about the same amount of
input as home businesses that produce manufactured goods or other services.
The store-cafes that do badly (yielding a low income), like other
unproductive home workshops, are often those operated by women and selling
only in the neighborhood. Low productivity is, therefore, not generally due
to the inherent nature of some product or service, but to the inferior job
opportunities for women.

About the Author: W. Paul Strassmann is professor of economics at Michigan
State University and has specialized in technological change in
manufacturing and construction, housing and urbanization, and employment
generation by small-scale enterprises. His most recent books are Housing
and Building Technology in Developing Countries (E. Lansing: MSU Press,
1978); The Transformation of Urban Housing (Baltimore: Johns Hopkins for
the World Bank, 1982); and Vivienda y El Empleo en Lima, Peru (Lima:
Direccion de Estudios de Empleo y Migracion, forthcoming.)











HOME-BASED RESTAURANTS, SNACK BARS, AND RETAIL STORES: THEIR CONTRIBUTION
TO INCOME AND EMPLOYMENT IN LIMA, PERU1


Familiarity with economics tends to encourage a more abstract view of
what is worthy and unworthy in production.2 Those least familiar or
sympathetic with the neoclassical approach tend to emphasize only what is
tangible--wheat, cloth, oil, steel--to the point at which, in some centrally
planned economies, nothing else is counted. It is not GNP, but GMP (or
"Gross Material Product") that becomes all-important. Among policy-makers
in the West and in many Third World countries, traces of such thinking can
be found in the preference for supporting farmers and factories rather than
services, especially retail stores, refreshment stands, and lunch counters.
The rationale seems to be that stores and cafes are easily set up in one's
home and that their marginal product must therefore be low. Any resources
devoted to them are believed to add no value to the basic product. Retail-
ing or serving food from homes is at best somewhat redistributive and at
worst parasitic.

This paper presents evidence from a 1983 survey of home businesses in
Lima, Peru, that partly contradicts that rationale and partly suggests that
the issue should be posed differently. First, we show that home-based
retail stores, restaurants, cafes, bars, and the like, generate as much or
more output with about the same amount of input as home businesses that
produce manufactured goods or other services. All types of business
proliferate to the point where returns to the average worker diminish to a
low of about fifty dollars or less. Second, we suggest a redefinition of
the issue by showing that the stores-cafes that do badly (yielding a low
income), like other unproductive home workshops, often are those operated by
women and selling only in the neighborhood. The explanation for low
productivity must, therefore, be sought not in the inherent nature of the
product or service but in the isolation of some neighborhoods and the
inferior job opportunities for women.

Comparison of Stores and Restaurants with Other Home Businesses

A survey of 1,706 randomly selected home businesses throughout the
metropolitan area of Lima, Peru, was carried out in late 1983.3 Of these,
53.2 percent were stores, restaurants, cafes, snack counters, and bars. If
the proportion holds for the city, no fewer than 52,000 households had such
store-cafes, as we shall call them. In terms of sheer numbers they were
three times as prevalent as the next most numerous home business, garment
making, with 15,000 enterprises.

The average monthly net earnings of store-cafes were the equivalent of
US$73.5 dollars with US$66.7 for other home businesses. Store-cafes and
others all employed an average of 1.4 workers, but per worker income was
US$52.5 monthly in the store-cafes, nearly 10 percent more than the US$47.6
of other home workers. Garment makers earned US$46.2 monthly.











As a whole, restaurants and the like did better than retail stores,
earning a net of US$89.6 monthly (US$54.6 per worker), compared with US$71.9
monthly (US$51.4 per worker) (see Table 1). The least successful
enterprises of all types earned less than US$3.00 monthly. The median
income of US$60.1 monthly of restaurants was higher than the US$45 median
for both stores and other enterprises. In households with restaurants,
restaurants contributed somewhat more than half of the household income,
while those stores and other enterprises gained about forty percent of the
household income from the business.

Total net household income for households with store-cafe businesses
averaged about US$175. The average household had one worker in addition to
those in the home business. The monthly earnings of that non-home worker
averaged US$99.8, less than the average of US$112.6 monthly earned by the
outside workers in households with home businesses other than store-cafes.
Non-home workers throughout the city received an average US$95.3 monthly
including property and pension income. Thus, the monthly earnings of
workers in home businesses averaged about half those of outside workers
regardless of whether the home business was a store, cafe, or other
enterprise.

The characteristics of households operating store-cafes were similar to
those of households operating all types of home businesses, as may be seen
in the last three lines of Tables 2 and 3. IThus, the average household
consisted of 6.3 members and was headed by someone in his or her mid-
forties. Like home businesses in general, 65 percent of the store-cafes
were operated by a female household head or by the wife of the male head.

For store-cafes the average of 6.1 years of education for the operator
of the business was less than the 7.6 years of other home business
operators. Like other household business operators, store-cafe operators
had lived in their dwellings a dozen years and had operated the enterprise
for four or five years. The average structure had slightly more than 115
m2 of floorspace and occupied a 150 m2 Isite. Of the 115 m2 of
floorspace, stores used an average of 27.2 m2 and restaurants or cafes
used an average of 43.5 m2; the latter is close to the 43.0 m2 average
for other home businesses. The owners/occupants of the home business
structures were asked to estimate their value; their responses averaged
$4,600 for those with stores, $4,200 for those with restaurants, but $6,800
for all others, for an overall average of $5,600. In both more and less
developed countries, such estimates have been remarkably close to those of
appraisers and of averages of actual sales. iIn Lima, structures housing
store-cafes probably had lower values than those with other types of home
businesses because they were more likely to be located in squatter
settlements.

Of course, these averages obscure diversity within categories, but they
show that, as a whole, stores and cafes as home businesses were not
remarkably different from other types of home businesses. The problem is to
identify those with the greatest potential for raising incomes, employment,
and savings in support of national economic development.












Gender and Markets

As with other businesses, stores and restaurants with higher earnings
tend to be operated by a male head of a household and to have customers from
the entire city, or at least the broad district where the enterprise is
located. Low earnings are associated with operation by a woman and sales
"mainly to neighbors in this building, this block, and in nearby streets."

The larger market category is called "city-wide" even though few or no
customers might come from remote districts. For manufacturing shops, sales
to other businesses were considered a separate market category. To attract
a city-wide or business clientele, quality of product or service must be
higher, which implies the use of more skills and usually more capital.
Neighborhood stores operated by males had twice the earnings of those
operated by females, and city-wide stores operated by males had nearly three
times the earnings of city-wide stores operated by females. The combination
of the two factors sextupled earnings *from less than $50 monthly for a
female-operated neighborhood store to over $300 for a male-operated store
with city-wide sales. Earnings per worker in these latter stores were
better than those of any other home business type, $191.7 monthly (see Table
1, columns 2 and 4). There were, however, only about 1,500 of them in the
Lima metropolitan area, compared with 33,500 female-run neighborhood shops,
the most widespread home business comprising 34.3% of all home businesses.

Eating and drinking establishments showed similar but smaller
differences based on the two factors of sex of operator and size of market.
As can be seen in Table 1, column 2, the fact of having a male operator
still doubled earnings, but the extent of the market has a smaller effect.
Since restaurants with a city-wide clientele employed one or two extra
workers, their earnings per worker were actually comparatively low at $63.1
monthly.

The low monthly income per worker of $38.3 for a female-operated
neighborhood store or $41.7 for a neighborhood cafe should be compared with
other neighborhood-oriented, female-run businesses. Those producing
textiles, garments, or food products had monthly net earnings averaging
US$30.1; laundresses averaged US$26.4 per month. The operation of stores
and cafes, therefore, was one of the better alternatives open to these
women. Moreover, a job in the formal sector, even if available, would
require commuting and additional clothing expenses. More than half (54.2%)
of cafe-store operators compared with 30.3 percent of laundresses and 48.1
percent of women who wove, sewed, or prepared food for the neighborhood,
said that the home business was "much better" than a formal sector job.

If a male household head operated a store for the neighborhood, he
earned US$65.4 monthly; if he operated a restaurant or cafe, net earnings
were US$73.0 monthly per worker. If the man produced garments, textiles, or
food products for the neighborhood, earnings were only US$59.8 per month for
metal, wood, or leather goods, earnings per worker were US$56.7 per month.
For city-wide markets, these latter two categories gave higher earnings of











US$78.9 and US$63.1 per month respectively. These earnings are similar to
incomes from city-wide markets. These store-cafes also had the highest
median income (US$123.6) that was statistically significant. In this group
was the most lucrative home business of all, a store with US$2,500 of
monthly earnings. To some extent, the higher incomes of store-cafes in
general had to offset the higher cost and inconvenience of the sharper
separation of business space from domestic 'space that such businesses
entail. Compared with manufacturing, customers appear more often and stay
longer so that any privacy requires at least separation--extra rooms are
often additional space.

Income is not, however, the same as contentment. The proportion of
operators who said a store-cafe with a city-wide clientele was "much better"
than a formal sector job was 48.4 percent. This preference was less than
that of metal products makers (63.6%), furniture makers (58.0%), shoemakers
(68.6%); but greater than that of men producing garments, textiles, or food
products for a city clientele (41.3%). These percentages show,
nevertheless, a strong preference for being self-employed, even though
average incomes were only half as much as earnings from outside work. The
male-run businesses contributed 55-85 percent of household income, while the
female-run store-cafes yielded 30-55 percent. IThis difference in percent-
ages contributed reflects the earnings differential between men and women,
and hence access to training, capital, and other opportunities.

Differences in household characteristics that lie behind these earning
patterns are worth noting. Male-operated eating and drinking establishments
had the largest average household size, 7.7 members, and generated the most
employment per business. Only three had a city-wide clientele, and these
were run by household heads with an average age of only 40.3 years (compared
with the overall average of 46.2 years). They had the largest premises,
191 m2 of floorspace on 323 m2 lots, with 72 percent of the floorspace
used for the business establishment. The expectation of 91.7 percent
interest rates on loans showed a more realistic business sense than the 43.2
percent rate expected by the average operator, given the current and
expected rate of inflation of perhaps 125 percent. Any interest rate below
this percentage, of course, means that in real value terms, less would be
repaid than was lent.

The three restaurants with city-wide clientele may be ambitious projects
that will either expand out of the home or fail and may, in any case, stop
being part of the home business population. Male-operated restaurants with
a neighborhood clientele, by contrast, were run by the oldest heads, 53.6
years of age. Both types were run by the only store-cafe operators with an
average of over seven years of education.

Women operate the vast number of small stores and cafes for the
neighborhood. These women had less than the average amount of education for
home business operators, between five and six years of schooling. Though
earning less, they did not use significantly less space for the business.
Their many neighborhood stores averaged 25 m2 and their restaurants












averaged 38.9 m2. A disproportionate number of neighborhood-oriented
stores and cafes were in the Pueblos Jovenes (squatter settlements) around
Lima. If they were evenly distributed in proportion to population, one
would expect some 18,000, but there were actually over 23,000 as
extrapolated from our random sample. We found 53.5 percent located in the
squatter settlements, and they were 57.4 percent of home businesses in these
areas.

Raising the productivity of these women workers is not simply a matter
of switching occupations but of providing training and of overcoming the
drawbacks of poor location, meaning cheaper access to the rest of the urban
economy. To encourage women to be seamstresses or laundresses at the same
location or to expect them to commute for a quarter of the day from that
place and back is of little help. With respect to training, however, women
in light manufacturing were ready to pay reasonable fees for 30-50 hours of
instruction, while the owners of stores and restaurants thought two hours
was the limit.

Major Problems of Home-based Stores and Cafes

Like other home-based enterprises, the stores and cafes are problem-
solvers more than problem-raisers. They help to provide both income and
space. Among occupants with stores, 73.1 percent said they could not have
built, bought, or rented the dwelling without the home business income. For
all other households, including the restaurant operators, this view was held
by 63.0 percent. For cafes and stores with city-wide markets, however, the
need for the business to support the cost of dwelling space approached
eighty percent (79.7%).

Conversely, of course, the businesses could not have started without the
space that the dwellings provided. That was true for 65.8 percent of eating
and drinking establishments and for 74.8 percent of stores. The average for
all other home businesses was 66.1 percent.

The viability of the stores and cafes is shown by the high proportion
(90%) that did not consider closing even though the year 1983 had been
economically depressed. A fall in business during the 1980s was reported by
43.2 percent. Some 31.2 percent, however, expected business to recover
during the coming year. Economic conditions might be poor, but competition
from larger stores, restaurants, cafes and bars (i.e., those outside of
dwellings) was not feared by 85 percent of respondents, including both those
with neighborhood clientele and those with city-wide clientele.

As was the case with other home businesses, the main problem perceived
by store and cafe operators was credit. It was listed first by 17.4 percent
of the respondents. Better access to piped water and the sewer system was
listed as more important by store-cafe operators than by any others except
the laundresses. It was listed first by 5.7 percent and as necessary before
expansion by 17.2 percent. The high ranking for water and sewerage access
is partly explained by the high number of store-cafes located in Pueblos












Jovenes that are inadequately supplied with such service. Only one percent
considered inspections, regulations, taxes, and other payments to government
a problem.

If the cafe or store were to sell more, its primary need would be more
space, as stated by 24.0 percent of the neighborhood-oriented establishments
and by 29.2 percent of those with city-wide customers. Acquiring space,
together with the need for more furniture, equipment, and inventory,
explains the need for additional credit before expansion.

Altogether, 60.3 percent of store-cafe operators said credit or access
to loans was necessary for the business, and these are the ones who used
it. Among home businesses other than store-cafes, credit was considered
indispensable by 66.1 percent; the share exceeded 85 percent in the case of
male-operated workshops that made textiles, garments, food, or metal
products.

When loans were needed, two-thirds (67.5%) of the store-cafe operators
sought them from friends and relatives. Only 7.3 percent mainly sought them
from banks; the rest went to pawnbrokers, money lenders, credit clubs, and
other sources. Table 3, column 5, shows that willingness to pay a realistic
amount of interest was more common among male-operated enterprises with a
city-wide clientele, and especially among the restaurant, bar, etc.,
operators.

The reluctance to use formal credit is underscored by the relatively
high unwillingness or inability of these enterprises to offer any guarantee
of repayment. Nothing was offered by 27.8 percent, a share exceeded only by
the laundresses. The dwelling itself was offered as collateral by 30.0
percent; and equipment or furniture by 19.0 percent. The rest thought they
could produce an adequate counter-signature by someone, payroll deductions
of a family member working elsewhere, and the like. Two-thirds were
unwilling to take responsibility for a joint loan together with other small
neighborhood businesses.

Initiating home businesses into the world of formal credit is the task
of the government affiliated Banco Industrial del Peru. In our sample, we
found 37 enterprises that had received loans from that institution. Half
were in manufacturing, but over a third were stores and two were
restaurants. Since manufacturing does not !invariably have a greater
potential for generating income, savings, and employment, it would have been
a mistake to concentrate all lending on that category of business.

Is the Contribution Trivial?

The 52,000 retail stores and eating establishments that operated in
dwellings in Lima were not too many. That one in seventeen dwellings had
such a business was not a waste. In fifty years, when real income per
capital may well triple or perhaps quintuple, the proportion with store-cafes
will be much lower. There will also be fewer small farms, small artisan












shops, and fewer of many other types of small business. Economic
development goes with capital accumulation and economies of scale.

In the meantime, however, the 73,000 jobs provided by the store-cafes
were important for 3.9 percent of the metropolitan labor force. They
generated net income equivalent to US$46 million per year at a rate of
US$73.5 dollars monthly per business or $52.5 per worker. Outside work paid
nearly twice as well but was less dependable, less satisfying, and often
involved travel time and related costs.

From the point of view of the customers of the stores and restaurants,
the ubiquity of the enterprises meant that the possibility of a purchase,
meal, snack, or drink was nearby. Customers thus saved time and often money
for other productive use, necessities, or pleasures. The consumers' benefit
from access to these establishments was not essentially different from
benefits due to other goods and services. Like those enterprises offering
manufactured products, the store-cafes had to provide enough convenience,
pleasure, and perhaps status to buyers or business could not continue. No
one was forced to patronize these stores and restaurants, and quite a few
closed. The survivors provided good value for money.

In our sample, a few of the businesses had a negligible monthly income
of US$5 or less because they were just starting, about to give up, or in
transition. Others earned over US$500 monthly, and one reported US$2,500.
These enterprises sometimes employed as many as half a dozen workers, and
one had eight. Such enterprises are not only expanding but may relocate on
other nearby premises. Alternatively, it is the household that may move out.

In one case a woman inherited a large, old, rundown dwelling with a
store at a good location. She refurbished the house and converted the shop
to a small cafeteria which flourished so well that a second room was shifted
to the enterprise. Income during the first year was about $3,000. It
became a popular restaurant. Eventually the woman, her husband, and
children decided to move out of this house; she planned to convert the newly
vacated rooms to a bakery. Books began to be kept formally by an
accountant, and bank loans were being taken out and repaid. The case
suggests once again that what matters is entrepreneurship, sensitivity to
markets, and capital accumulation in general, not their particular
incarnation in manufacturing instead of services, or vice versa.

Conclusion

In summary, the survey showed that home-based stores and restaurants
were generally not very different from other home businesses on such
criteria as space used, employment generated, and net income produced.
Variations in profitability within the store-cafe category were also due to
the same factors that caused variations elsewhere. Specifically, enterprises
were less profitable if they were at inferior locations and operated by
women. Regression analysis showed that, all other things being equal, a
store or restaurant earned $10 more per worker than home-based manufacturing











of wood, leather, metal, textile, clothing, or food products. But other
things were not equal, and income per worker actually turned out to average
only about the same amount. The a priori advantage was lost because the
greater proportion of stores and restaurants were located inconveniently,
sold mainly to neighbors, and were operated by women.

Some ways to offset inconvenient location are the provision of water,
sewers, lighting, !and good access roads. All of these are likely to bring
competition in, but at the same time they allow those with the most
potential to expand and to compete elsewhere. Either way, workers have the
opportunity to find more productive employment in better enterprises,
whether operated from dwellings or not.

The lower productivity of female-operated enterprises is, of course, not
inevitable. Some women in the sample, like some men, probably preferred a
convenient part-time or flexible activity that could blend with household
responsibilities. I Lower earnings were the trade-off for that convenience.
Other women had a different perspective and earned less only because of less
education, difficult access to credit, legal disabilities, and other types
of discrimination. Those who overcame these handicaps were often widows who
took over husband's business or daughters who were especially favored with
education and inheritance. The woman cited above who turned an inherited
house into a restaurant is a good example. Few development policies have
more potential than giving talented people access to training and credit.

Finally, a paradox of development is that the more home-based stores and
restaurants with potential are encouraged, the faster will they be displaced
by more productive, large-scale enterprises. Needless to say, that
principle applies equally to other types of home business, to most small
scale enterprises, and to the bulk of the informal sector. Whatever raises
incomes, savings, and the tax base encourages capital formation and sooner
or later, mass production. But that process takes decades. Meanwhile, the
special benefit of home-based enterprises is that they promote better
housing, allow that part of the capital stock to be used more intensively,
and hearten those who like working close to their families. Commuting is
the cost of progress.


! I












APPENDIX


The Survey of 1980 and 1983

For both the 1980 and 1983 surveys, households were selected from those
in 203 clusters with over a hundred houses that had previously been selected
as a general sampling frame by the Directorate of Employment and Migration
Studies (DEEM, formerly the Technical Office of Manpower Studies), General
Bureau of Employment, Ministry of Labor and Social Progress of Peru. The
1980 survey was carried out from June 10 to July 3, 1980. To obtain a final
sample of close to 1,200 households, 1,380 addresses were initially selected
at random. Added later were 53 households next to those selected when these
represented increased density of settlement and rising population growth.
Of the initial selection, 266 interviews did not materialize because
dwellings had been demolished, were unoccupied, were used entirely for
non-residential purposes, or had occupants that refused to be interviewed or
that could not be located even after four return visits. The number of
households finally interviewed was 1,167. Interviewing began early on
Saturday and Sundays and after 2 p.m. on week-days. Only the head of the
household or other competent adults were questioned. Repeat visits were
made to some households if information later appeared to be incomplete or
contradictory.

Sample selection and interviewing proceeded in a similar manner for the
1,706 households with home businesses in the survey carried out from October
27 to December 10, 1983. To identify these households, however, 15,107
dwellings had to be surveyed first to determine the presence or absence of a
home business, including the renting of rooms. Since 193 households had two
businesses and 7 households had three businesses, the total number found was
1,913. To reduce the cost of search for home businesses, two strata of
higher income districts were undersampled, so that 242 observations had to
be weighted upward. Lower income districts were oversampled somewhat, and
1,464 observations had to be weighted downwards.

Where observations from subsamples have to be weighted, the standard
errors of means cannot be calculated in the usual manner. Instead, one has
to estimate the standard errors for the means of each subsample separately
and then take their average, weighted in accordance with the known or
assumed distribution of the population among the strata from which the
subsamples come. For this insight, I am indebted to Professor James H.
Stapleton, Department of Statistics, Michigan State University.

Sample selection and interviewing in Lima were under the direction of
Abel Centurion and Jorge Bernedo of the DEEM, Ministry of Labor. Their
contribution and that of their associates is gratefully acknowledged. The
accuracy of their work can be seen from the following comparisons with the
1981 National Census of Population and Housing.









-10-


1980 Household Survey 1981 Census


1. Number of observations 1,167 906,367

2. Occupants per dwelling 5.53 5.40

3. Walls made of inferior materials 25.8 26.4
(adobe, straw, etc.), percentage
of dwellings

4. Sewer system connection and i 62.5 61.1
piped water, percentage of'
dwellings

5. Renters, percentage of households 29.2 29.8









-11-


NOTES


1. This study is the result of a cooperative effort between Michigan State
University and the Directorate of Employment and Migration Studies,
General Bureau of Employment, Ministry of Labor of Peru. Financial
support came from the Small Enterprise Approaches to Employment Project
of the Bureau for Science and Technology, U.S. Agency for International
Development.

2. Thanks are due to Chris Gerry, Alan Gilbert, Michael Lipton, Donald
Mead, Michael Shepperdson, Peter Ward, and E.J. Wells for helpful
comments. Remaining errors and shortcomings are my responsibility.

3. See Appendix.












Table 1. Income Characteristics of Home-based Stores and Restaurants in Lima, Peru, 1983


(1) (2) (3) (4) (5) (6) (7)
Nue Monthly Monthly Total Share of Median
Number home Home income monthly home business
in a/ business business per home household business income
sample- income workers worker income Income in (minimum)
(percentage) (standard error $ $ total X


Stores, retail trade-
A. Female operated
1. Neighborhood market 585 (64.4) 48.4 (2.6) 1.3 38.3 158.4 30.6 35.0 (0.0)
2. City-wide market 90 (9.9) 118.1 (28.9) 1.5 66.6 215.7 54.8 45.0 (6.0)


B. Male operated
3. Neighborhood market 116 (12.8) 96.0 (8.6) 1.6 65.4 -169.9- 56.5 75.0 (2.5)
S4. City-wide market 26 (2.9) 325.4 (202.3) 1.7 191.7 379.1 85.8 123.6 (5.0)

C. Female or Male operated
5. Sell to businesses 10 (1.1) 90.9 (16.5) 1.8 58.3 155.4 58.5 73.9 (5.0)

Restaurants, cafes, bars, etc.
A. Female operated
6.1. Neighborhood market 42 (4.6) 64.8 (8.5) 1.7 41.7 147.2 44.0 49.8 (4.0)
7.2. City-wide market 25 (2.8)- 87.6 (20.3) 1.2 70.1 183.5 47.7 60.2-(15.0,

B. Male operated
8. Neighborhood market 11 (1.2) 168.2 (56.7) 2.0 73.0 248.9 67.6 81.3 (2.5)
9. City-wide market 3 (0.3) 17b.0 (34.9) 3.3 63.1 215.0 81.4 150.0 (75.0)


Totals
10. All stores, etc. 827 (91.1) 71.9 (10.8) 1.4 51.4 173.2 41.5 44.8 (0)
11. All restaurants, etc. 81 (8.9) 89.6 (10.4) 1.6 54.6 174.2 51.4 60.1 (2.5)

SHome businesses
12. All types (including stores 1706 70.3 (3.9) 1.4 50.2 176.1 39.9 44.9 (0)
and restaurants)

ce: Survey of 1,706 home businesses, October 27 December 10, 1983.
ite: -!Percentage of 908 store-cafes.

















Table 2. Household Characteristics of Those with Stores or
Restaurants in Dwellings, Lima, Peru, 1983


(1) (2) (3) (4) (5) (6)
Years of Age of Total number Home Years of
occupation household Household of employed business education
of present head, Size household workers of business
dwelling years members operator

I. Stores, retail trade
A. Female operated
1. Neighborhood market 11.6 44.5 6.4 2.5 1.3 6.0
2. City-wide market 10.9 44.3 6.2 2.5 1.5 5.3

B. Male operated
3. Neighborhood market 12.8 48.1 5.8 2.2 1.6 6.8
4. City-wide market 11.8 43.7 5.1 2.0 1.7 6.9

C. Female or male operated
5. Sell to businesses 15.3 45.6 6.5 2.6 1.8 6.0

II. Restaurants, cafes, bars, etc.
A. Female operated
6.1. Neighborhood market 13.2 47.5 6.0 2.5 1.7 5.4
7.2. City-wide market 13.3 47.6 5.9 2.4 1.2 6.9

B. Male operated
8. Neighborhood market 10.9 53.6 7.8 3.1 2.0 7.7
9. City-wide market 10.3 40.3 7.3 2.5 3.3 7.3


III. Totals
10. All stores, etc. 11.7 44.9 6.3 2.5 1.4 6.1
11. All restaurants, etc. 12.7 48.0 6.3 2.5 1.6 6.2

IV. Home Businesses
12. All types 12.7 46.2 6.2 2.4 1.4 6.8


Source: Survey of 1,706 home businesses, October 27 December 10, 1983.


















Table 3. Dwellina Characteristics of Those with a Store or
Restaurant on the Premise in Lima, Peru, 1983


(1) (2) (3) (4) (5) (6)
Space
Interest of home
Site area, Floorspace, Value, $ Rent pe rate expect business
m2 m2 month, ed to pay, % 2

I. Stores, retail trade
A. Female operated
1. Neighborhood market 154.4 115.9 4,213 10.2 40.3 25.1
2. City-wide market 125.0 100.5 5,900 3.5 40.6 44.0

B. Male operated
3. Neighborhood market 151.0 119.4 5,350 25.8 48.8 27.1
4. City-wide market I 112.8 124.2 8,300 9.7 68.6 43.3

C. Female or Male operated
5. Sell to businesses 132.7 115.7 2,719 13.7 59.0 34.7

II. Restaurants, cafes, bars, etc.
A. Female operated
6.1. Neighborhood market 139.4 110.9 5,450 15.4 40.7 38.2
7.2. City-wide market 103.5 127.7 2,550 7.5 65.2 40.2

B. Male operated
8. Neighborhood market 171.5 156.6 1,435 25.0 59.6 31.0
9. City-wide market 322.5 191.3 4,267 --- 91.7 137.0

III. Totals
10. All stores, etc. 149.1 115.0 4,592 11.0 42.7 27.2
11. All restaurants, etc. 143.9 124.8 4,207 13.0 52.0 43.5

IV. Home businesses
12. All types 148.8 115.6 5,600 10.5 43.2 35.4
_________________________________________________' ___________________ \ _ __ _______..


Source: Survey of 1,706 home businesses, October


27 December 10, 1983.





PUBLICATIONS

OFFICE OF WOMEN IN INTERNATIONAL DEVELOPMENT

MICHIGAN STATE UNIVERSITY


The WOMEN IN INTERNATIONAL DEVELOPMENT PUBLICATION SERIES were founded in
1981 to disseminate information rapidly to national and international
specialists in universities, government, and private institutions concerned
with development issues affecting women. The two series, WORKING PAPERS ON
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