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Poverty and Entrepreneurship in Developed Economies

Michael H. Morris, Susana C. Santos and Xaver Neumeyer

While extensively explored as a solution to poverty at the base of the pyramid, this is the first in-depth examination of entrepreneurship and the poor within advanced economies. The authors explore the underlying nature of poverty and draw implications for new venture creation. Entrepreneurship is presented as a source of empowerment that represents an alternative pathway out of poverty.
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Chapter 3: Entrepreneurship and the poor

Michael H. Morris, Susana C. Santos and Xaver Neumeyer

Extract

The patterns in entrepreneurial activity among the poor in developed economies are examined. Characteristics of those who start businesses when coming from poverty are reviewed. Critical aspects of the poverty condition and their direct implications for entrepreneurial activity are summarized. In spite of the significant challenges, entrepreneurship is approached as a natural path for the poor. Motives for pursuing this path are then examined. Building on this foundation, the SPODER framework is introduced for increasing entrepreneurial activity among the poor. The remaining chapters of this book are structured around this framework.

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