Home-based enterprises are likely to proliferate for decades in developing countries, but their productivity depends on access, cost of space, density of settlement, and other neighbourhood characteristics. Over a thousand households and home enterprises were surveyed in Lima, Peru, in 1980 and 1983, to explain why the frequency and composition of these enterprises varies with seven types of neighbourhood. The enterprises both cause and reflect dwelling and neighbourhood improvement or deterioration. Enterprises are classified by types of product, markets, and the family members in charge. Income and employment effects are stressed. Among the findings was that conventional neighbourhoods had fewer but more lucrative home enterprises than did irregular settlements.
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