Does access to electricity promote business creation over the short term and long term? Does the effect differ with grid and off-grid electricity access? We provide insights from the Electricity Access and Business Creation project in Ethiopia, based on the World Bank’s Socio-Economic Survey data.
Most of the businesses in rural areas are home-based, i.e., the household runs businesses such as food sales, restaurants, mobile, and electronics shops, barbering, etc., within their residence. Rural households’ business ownership increased from 17.5% in 2011 to 28.5% in 2016. We found that: