THE ROLE OF INFORMAL BUSINESSES IN RURAL LIVELIHOODS: THE CASE OF BOLERO GROWTH CENTRE.

Abstract

This study sought to explore the role of informal businesses in meeting people’s basic needs in Bolero in the wake of decreasing agricultural productivity, which is a major source of livelihoods in rural areas. Evidence suggests that agriculture alone cannot support rural livelihoods due to a number of factors including small acreage of land due to over population and loss of soil fertility due to soil erosion resulting from general environmental degradation. It was necessary to undertake this study in order to understand the role informal businesses play in sustaining livelihoods of the people around Bolero. The study found out that people around Bolero organise these small businesses in response to unreliability of farming. The study found out that most people around Bolero use income from informal businesses to buy food buy farm inputs, pay for medical bills, pay for school fees and other basic needs. Both men and women were found to be actively participating in the operation of these informal businesses. The study also found that despite the crucial role face a number of problems including lack of capital to expand their businesses, business seasonality, and lack of training opportunities which limit their effectiveness in providing for the basic needs of the people. Based on these findings the study concludes that the role of informal businesses in sustaining rural livelihoods cannot be underestimated. Therefore, it recommends that rural people should be assisted in organising and running informal businesses as a means of expanding their sources of livelihoods. Access to capital, training opportunities would make a big difference in improving the effectiveness of the informal businesses around Bolero.