Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban Malawi

Mainstreaming gender issues in a demographically divided setting remains a critical component in policy frameworks and project designs. The focus of this study revolves around male- and female-headed households’ engagement in business operations, with an extended effect on household welfare. This st...

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Main Authors: Wisdom Richard Mgomezulu, Javaid Ahmad Dar, Beston B. Maonga
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Social Sciences
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Online Access:https://www.mdpi.com/2076-0760/13/12/643
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author Wisdom Richard Mgomezulu
Javaid Ahmad Dar
Beston B. Maonga
author_facet Wisdom Richard Mgomezulu
Javaid Ahmad Dar
Beston B. Maonga
author_sort Wisdom Richard Mgomezulu
collection DOAJ
description Mainstreaming gender issues in a demographically divided setting remains a critical component in policy frameworks and project designs. The focus of this study revolves around male- and female-headed households’ engagement in business operations, with an extended effect on household welfare. This study uses Malawi’s Integrated Household Survey 5, and answers two research questions: Are there any determinants of household engagement in non-farm businesses in rural and urban areas of Malawi? And is there any impact of gender differentials in household engagements in non-farm business operations on household welfare in rural and urban areas of Malawi? This study notes that male-managed non-farm SMEs had better profits compared with their female counterparts, as described by the Probit and the Oaxaca two-fold decomposition models. Mediation analysis was later used to establish the impact of the gender differentials using profits as the mediating variable. In general, females were found to be better off, but the benefits were insignificant in reducing the general rural–urban gap. This study recommends the provision of support towards credit structures for rural households and women-headed households; improved financial and business literacy for increased engagement in business operations and reduced poverty; and support towards advocacy of gender inclusion in economic empowerment approaches.
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spelling doaj-art-5ef19ae82a004b69a73a79b2e50f43a52024-12-27T14:54:00ZengMDPI AGSocial Sciences2076-07602024-11-01131264310.3390/socsci13120643Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban MalawiWisdom Richard Mgomezulu0Javaid Ahmad Dar1Beston B. Maonga2Faculty of Economics and Law, Malawi University of Business and Applied Sciences, Blantyre 311109, MalawiGovernment Degree College, Tangmarg 193402, Baramulla, IndiaCenter of Excellence in Agricultural Policy Analysis (ACE II-APA), Lilongwe University of Agriculture and Natural Resources, Lilongwe 207237, MalawiMainstreaming gender issues in a demographically divided setting remains a critical component in policy frameworks and project designs. The focus of this study revolves around male- and female-headed households’ engagement in business operations, with an extended effect on household welfare. This study uses Malawi’s Integrated Household Survey 5, and answers two research questions: Are there any determinants of household engagement in non-farm businesses in rural and urban areas of Malawi? And is there any impact of gender differentials in household engagements in non-farm business operations on household welfare in rural and urban areas of Malawi? This study notes that male-managed non-farm SMEs had better profits compared with their female counterparts, as described by the Probit and the Oaxaca two-fold decomposition models. Mediation analysis was later used to establish the impact of the gender differentials using profits as the mediating variable. In general, females were found to be better off, but the benefits were insignificant in reducing the general rural–urban gap. This study recommends the provision of support towards credit structures for rural households and women-headed households; improved financial and business literacy for increased engagement in business operations and reduced poverty; and support towards advocacy of gender inclusion in economic empowerment approaches.https://www.mdpi.com/2076-0760/13/12/643gender differentialsbusiness enterprisesrural–urban divideOaxaca two-fold decompositionMalawi
spellingShingle Wisdom Richard Mgomezulu
Javaid Ahmad Dar
Beston B. Maonga
Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban Malawi
Social Sciences
gender differentials
business enterprises
rural–urban divide
Oaxaca two-fold decomposition
Malawi
title Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban Malawi
title_full Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban Malawi
title_fullStr Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban Malawi
title_full_unstemmed Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban Malawi
title_short Gendered Differences in Household Engagement in Non-Farm Business Operations and Implications on Household Welfare: A Case of Rural and Urban Malawi
title_sort gendered differences in household engagement in non farm business operations and implications on household welfare a case of rural and urban malawi
topic gender differentials
business enterprises
rural–urban divide
Oaxaca two-fold decomposition
Malawi
url https://www.mdpi.com/2076-0760/13/12/643
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AT bestonbmaonga gendereddifferencesinhouseholdengagementinnonfarmbusinessoperationsandimplicationsonhouseholdwelfareacaseofruralandurbanmalawi