The Impact of Entrepreneurship on Poverty Reduction
Keywords:Entrepreneurship, Poverty, Human Development Index, Economic Development, Entrepreneurial Activity
Purpose: The main purpose of this research is to analyze how entrepreneurship and entrepreneurship development incentives can influence the reduction of poverty and help to improve the entrepreneurship environment in world countries.
Theoretical Framework: The study of the role of entrepreneurship in reducing poverty has become a major source of interest for scholars and policymakers around the world. A few studies have been conducted by scientists to study the impact of entrepreneurship on poverty reduction. Scholars in fields such as economics and management have tried to explore different approaches in this area and identify the relationships between entrepreneurship and poverty reduction.
Design/Methodology/Approach: In this study, we use a deductive approach, in which the hypotheses are tested for application across countries. The quantitative method has been used for this approach. The Panel Fixed Effects model has been employed to assess the impact of entrepreneurship and entrepreneurship development incentives on poverty.
Findings: Overall, the results showed that entrepreneurship in countries around the world has a positive and significant impact on poverty reduction. In addition, entrepreneurship development incentives increase the efficiency and capacity of entrepreneurial activities to reduce poverty.
Research, Practical & Social implications: This study not only helps to fill the gap in the literature on this topic, but also serves as a model of economic and social development for developed, developing and less developed countries.
Originality/value: This is a new study using changes in the HDI to measure poverty reduction, providing a broader and more comparative indicator that answers research questions. This research supports the claim that entrepreneurial activity has impact on poverty eradication and improving human development and people’s quality of life. Also, it demonstrates the strong relationship between entrepreneurship and poverty alleviation.
Acs, Z. (2006). How is entrepreneurship good for economic growth? Innovations: technology, governance, globalization, 1(1), 97-107.
Adenutsi, D. E. (2009). Entrepreneurship, job creation, income empowerment and poverty reduction in low-income economies.
Ahlin, B., Drnovšek, M., & Hisrich, R. D. (2014). Entrepreneurs’ creativity and firm innovation: the moderating role of entrepreneurial self-efficacy. Small Business Economics, 43(1), 101-117.
Amini, S., Delgado, M. S., Henderson, D. J., & Parmeter, C. F. (2012). Fixed vs random: The Hausman test four decades later. In Essays in honor of Jerry Hausman. Emerald Group Publishing Limited.
Amorós, José Ernesto, and Oscar Cristi (2011). "Poverty and entrepreneurship in developing countries." The dynamics of entrepreneurship: Evidence from global entrepreneurship monitor data (2011): 209-230.
Arshed, N., Anwar, A., Kousar, N., & Bukhari, S. (2018). Education enrollment level and income inequality: Social Indicators Research, 140(3), 1211-1224.
Arshed, N., Anwar, A., Kousar, N., & Bukhari, S. (2018). Education enrollment level and income inequality: A case of SAARC economies. Social Indicators Research, 140(3), 1211-1224.
Audretsch, D. B., & Keilbach, M. (2004). An entrepreneurship and its impact on regional growth: an evolutionary interpretation. Journal of Evolutionary Economics, 14(5), 605-616.
Avnimelech G., Zelekha, Y., & Sharabi, E. (2014). The impact of corruption on entrepreneurship on developed vs non-developed countries. International Journal of Entrepreneurial Behavior & Research.
Baron, R., & Shane, S. (2007). Entrepreneurship: A process perspective. Nelson Education.
Bhagwati, J., & Srinivasan, T. N. (2002). Trade and poverty in the poor countries. American Economic Review, 92(2), 180-183.
Bosma, N., & Sternberg, R. (2014). Entrepreneurship as an urban event? Empirical evidence from European cities. Regional studies, 48(6), 1016-1033.
Bruton, G. D., Ketchen Jr, D. J., & Ireland, R. D. (2013). Entrepreneurship as a solution to poverty. Journal of Business Venturing, 28(6), 683-689.
Cohen, D., & Soto, M. (2007). Growth and human capital: good data, good results. Journal of economic growth, 12(1), 51-76.
Coulter, M. K., & Coulter, M. K. (2008). Strategic management in action.
Drucker, P. F. (1985). Entrepreneurial strategies. California Management Review (pre-1986), 27(000002), 9.
Gartner, W. B. (1988). “Who is an entrepreneur?” is the wrong question. American journal of small business, 12(4), 11-32.
Human Development Report 2020. Environment: Science and Policy for Sustainable Development, 63(3), 34-40.
Jones, M. V., Coviello, N., & Tang, Y. K. (2011). International entrepreneurship research (1989–2009): a domain ontology and thematic analysis. Journal of business venturing, 26(6), 632-659.
Lammam, C., & MacIntyre, H. (2016). An introduction to the state of poverty in Canada (pp. 978-0). Fraser Institute.
Landstrom, H. (2007). Pioneers in entrepreneurship and small business research (Vol. 8). Springer Science & Business Media.
Minniti, M. (2013). The dynamics of entrepreneurship: Evidence from global entrepreneurship monitor data. OUP Oxford.
Nabi, G., Liñán, F., Mitra, J., Abubakar, Y. A., & Sagagi, M. (2011). Knowledge creation and human capital for development: the role of graduate entrepreneurship. Education+ Training.
Naudé, W. (2010). Entrepreneurship, developing countries, and development economics: new approaches and insights. Small business economics, 34(1), 1.
Nistotskaya, M., & Cingolani, L. (2016). Bureaucratic structure, regulatory quality, and entrepreneurship in a comparative perspective: Cross-sectional and panel data evidence. Journal of Public Administration Research and Theory, 26(3), 519-534.
Poverty, O., & Human Development Initiative. (2020). Global MPI 2020–Charting pathways out of multidimensional poverty: Achieving the SDGs.
Ravallion, M. (2007). Looking beyond averages in the trade and poverty debate. In The Impact of Globalization on the World’s Poor (pp. 118-144). Palgrave Macmillan, London.
Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and measuring entrepreneurial leadership style. Journal of small business Management, 53(1), 54-74.
Sachs, J., Kroll, C., Lafortune, G., Fuller, G., & Woelm, F. (2021). Sustainable Development Report 2021. Cambridge University Press.
Sameti, M., & Mojahednia, M. (2011). The Effect of Intellectual Property Rights and Information and Communication Technology on Human Development Index in Developing Countries During 2005-2010. Australian Journal of Business and Management Research Vol, 1(9), 105-112.
Sen, A. (2000). The income component of the human development index. Journal of human development, 1(1), 83-106.
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of management review, 25(1), 217-226.
Singer, A. E. (2006). Business strategy and poverty alleviation. Journal of Business Ethics, 66(2), 225-231
Slivinski, S. (2015). Bootstraps tangled in red tape: How state occupational licensing hinders low-income entrepreneurship. Policy Report, (272), 23.
Stevenson, H., & Gumpert, D. (1985). The heart of entrepreneurship.
SULTAN, D. F., AHMAD, J., KHAN, A. S., & RAHMAN, R. U. (2018). The Role of Social Entrepreneurship in Poverty Reduction.
Timmons, J. A., Spinelli, S., & Tan, Y. (2004). New venture creation: Entrepreneurship for the 21st century (Vol. 6). New York: McGraw-Hill/Irwin.
Todaro, M., & Smith, S. (2003). Development economics. UK: Pearson education.
Vandenberg, P., & Creation, J. (2006). Poverty reduction through small enterprises. SEED Working paper, 75, 1-60.
World Bank. (2009). Handbook on Poverty and Inequality. The World Bank.
World Bank. (2017). Poverty and shared prosperity 2018: piecing together the poverty puzzle
World Bank. (2020). Poverty and Shared Prosperity 2020: Reversals of Fortune. The World Bank.
How to Cite
Copyright (c) 2023 Ostonokulov Azamat, Sattoriy Fayzullokh, Abdullayeva Nilufar
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html