Table 2.

Operationalization of key variables

VariableDefinition/descriptionOperationalization
Enterprise incomeAnnual net income earned by the household from the enterpriseLog of annual net income from the enterprise
Enterprise failureWhether the enterprise ceased operations between 2004 and 2011Binary variable: 1 = business failed, 0 = business continued operations
Household income groupCategorization of households into income levels for analysisBinary variable: 1 = lower-income (bottom 20th percentile), 0 = higher-income (top 20th percentile)
Entrepreneur educationEducation level of the primary decision-maker in the enterpriseNumber of years of formal education completed by the primary decision-maker
Household educationEducation levels across members of the householdAverage education of all members of the household
Number of family membersNumber of family members involved in the enterpriseCount of family members directly participating in enterprise activities
GenderGender of the primary decision-maker in the enterpriseBinary variable: 1 = male and 0 = female
Type of enterpriseClassification of the business activity undertaken by the householdBinary variable: 1 = retail and 0 = manufacturing
Household incomeTotal annual income of the householdInverse hyperbolic sine (IHS) transformation applied to income data
Household consumptionMonthly consumption expenditure of the householdIHS transformation applied to monthly consumption data
Social groupCategorical classification of households by social identitySeven exclusive groups: Brahmins, forward castes, other backward classes, Dalits, Adivasis, Muslims and others
LocationWhether the household resides in an urban or rural areaBinary variable: 1 = urban, 0 = rural
Source(s): Authors’ own work

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