In this paper we consider the role that household enterprises play in Rwanda in terms of
poverty reduction, employment creation and economic growth. We argue that household
enterprises play a significant role in poverty reduction and providing non-farm employment.
We suggest that household enterprises range from subsidiary income generating activities to
owner operated businesses. We also identify three types of household enterprises:
survivalist, steady employment and entrepreneurial. We conclude that their major role is in
reducing poverty and providing employment. Their role in economic growth is by increasing
the spending power of the operators, thereby increasing demand in the economy through the
multiplier effect. Few, however, will create employment by growing into micro or small
enterprises.