Drivers of fragility in the ventures of poverty entrepreneurs

Michael H. Morris (), Sohrab Soleimanof and Reginald Tucker
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Michael H. Morris: University of Notre Dame
Sohrab Soleimanof: Louisiana State University
Reginald Tucker: Louisiana State University

Small Business Economics, 2023, vol. 61, issue 1, No 13, 305-323

Abstract: Abstract This study examines whether and how the experience of poverty shapes the entrepreneurial journey. The research builds upon disadvantage theory to explore how liabilities resulting from the poverty experience can serve as obstacles to the creation of sustainable enterprises. An analysis of data from a sample of 202 entrepreneurs in poverty contexts in the USA demonstrates how liability of poorness (LOP) factors leads to the emergence of more fragile ventures. The findings further indicate that entrepreneurial alertness can moderate the effect of LOP on venture fragility. The study offers theoretical and practical suggestions for further understanding and fostering entrepreneurship as a viable solution to poverty.

Keywords: Liability of poorness; Venture fragility; Entrepreneurial alertness; Poverty alleviation; L25; L26 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-022-00687-6

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