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Revisiting Poverty And Entrepreneurship In Developing Countries

Author

Listed:
  • JOSÉ ERNESTO AMORÓS

    (EGADE Business School, Tecnologico de Monterrey, Av Carlos Lazo 100, Santa Fe, La Loma, Álvaro Obregón, 01389, Mexico City, Mexico)

  • LIZBETH MARTÍNEZ RAMÍREZ

    (Tecnologico de Monterrey, Business School, Campus Santa Fe, Av Carlos Lazo 100, Santa Fe, La Loma, Álvaro Obregón, 01389, Mexico City, Mexico)

  • LUCÍA RODRÍGUEZ-ACEVES

    (Tecnologico de Monterrey, Business School, Campus Guadalajara, Av. General Ramón Corona 2514. Col., Nuevo México, CP 45138, Zapopan, Jal. Mexico)

  • LINDA ELIZABETH RUIZ

    (Tecnologico de Monterrey, Business School, Campus Monterrey, Av. Eugenio Garza Sada 2501 Sur, Col., Tecnológico, 64849 Monterrey, N.L. Mexico)

Abstract

Currently, the economic effect of entrepreneurship research has been highly associated with opportunity entrepreneurship, while necessity entrepreneurship has a lower effect. This manuscript revisits the relationship between poverty and entrepreneurial activity, mainly necessity-driven, analyzed by Amorós and Cristi (2011). We hypothesize that countries with a high pursuit of entrepreneurial activities reduce poverty, even if necessity-motivated entrepreneurship is developed. We test our hypothesis using Global Entrepreneurship Monitor data and the UN-UNDP, Human Development Index from 2010–2019. Our results reconfirm that total and necessity-motivated early-stage entrepreneurship both, have a positive effect on countries’ poverty reduction trends, especially in developing countries. We discuss the relevance of entrepreneurship activities on development beyond pure economic effects and highlight the importance of entrepreneurship in the pandemic situation caused by COVID-19, which is pushing more people into poverty situations.

Suggested Citation

  • José Ernesto Amorós & Lizbeth Martínez Ramírez & Lucía Rodríguez-Aceves & Linda Elizabeth Ruiz, 2021. "Revisiting Poverty And Entrepreneurship In Developing Countries," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 26(02), pages 1-17, June.
    • Handle: RePEc:wsi:jdexxx:v:26:y:2021:i:02:n:s1084946721500084
    DOI: 10.1142/S1084946721500084
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    Cited by:

    1. Xiuxiu Jiang & Xia Wang & Jia Ren & Zhimin Xie, 2023. "Digital economy, agglomeration, and entrepreneurship in Chinese cities," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 359-370, January.
    2. Michael H. Morris & Sohrab Soleimanof & Reginald Tucker, 2023. "Drivers of fragility in the ventures of poverty entrepreneurs," Small Business Economics, Springer, vol. 61(1), pages 305-323, June.

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