REVISITING POVERTY AND ENTREPRENEURSHIP IN DEVELOPING COUNTRIES

José Ernesto Amorós, Lizbeth Martínez Ramírez (), Lucía Rodríguez-Aceves () and Linda Elizabeth Ruiz ()
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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

Journal of Developmental Entrepreneurship (JDE), 2021, vol. 26, issue 02, 1-17

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.

Keywords: Entrepreneurship; poverty alleviation; necessity-driven entrepreneurship; early-stage entrepreneurship; Global Entrepreneurship Monitor; Human Development Index (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:wsi:jdexxx:v:26:y:2021:i:02:n:s1084946721500084

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DOI: 10.1142/S1084946721500084

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