Based on different stages of quantitative and qualitative research conducted in León South East, Nicaragua; this thesis is a result of four months field research from February to June 2009. As a new and rapidly evolving urban extension to the geography of León city, the project exhibits interesting traits worthy of note on the part of other urban expansion plans in Latin America and beyond. Within the broad theme of local economic development, this thesis addresses the complexity of factors that affect the actions and agency undertaken by residents to generate income. With attention focused on the micro (household) level, the theoretical and conceptual frames employed and the analysis of results focus on the independent capacity of households to negotiate economic opportunities and challenges. Comprised of a majority low income family profile; households in León South East face a new geography that contains potentials but also new challenges in the stabilisation and establishment of income generating practices. The role of home-based economic activities is highlighted, and together with the existing theoretical approach to informality and flexibility in knowledge formation; an argument is posited that centres on the autonomous capacity of households to generate income in conjunction with the exercise of unique agency forms particular to this new urban space
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