Many people across the globe know that people living in developing countries are poor. On that note, most of these people lack the necessary abilities to make ends meet. The living standards of people living in developing countries are usually below the poverty line. However, despite the fact that many of these nations lack the necessary white collar jobs to enable their citizens to earn decent living, most of the people have devised various methods for putting food on the table. On such procedure is through entrepreneurship among entrepreneurs in the developing nations. Some business professionals define entrepreneurship as the willingness to take or engage in risks with the aim of developing, organizing, and managing a business venture in a competitive global marketplace that experiences constantly evolution (Brannback, Brannback, & Cursrad, 2007). Research also shows that entrepreneurs are pioneers, leaders, innovators, and inventors. They take the risks to try to do business in extraordinary way. Entrepreneurs in developing countries have recognized the need to be creative so that they can eradicate poverty. They get help from different groups such as government, well wishers, and international, national and not for profit organizations. Therefore, this paper is a research study to establish the existing data on how entrepreneurship has lead to the reduction of poverty in third world countries.
Many researchers concerned with poverty alleviation in third world countries have reported that entrepreneurship is one fact that has helped reduce the poverty in many developing nations significantly. A research study by United Nations University indicates that it is not unusual to find people in developing or poor countries selling anything and everything. The study shows that anyone who has lied in any developing country will be surprised with the level to such small business have taken course in developing nations across the globe. The study further indicates that the people in these nations sell even the most unimaginable things (Chang, 2010). To give a clearer example of how entrepreneurship has helped men and women alleviate poverty in developing nations, the author sighted examples of women selling vegetables in Ethiopia. Some developing countries like Kenya, Zambia among others have women who specialize in making ornaments, weaving mats, and other aesthetic materials that are not only used locally but also internationally.
Some countries have men and women engaging in variety of business activates such as fishing, planting and selling their crops and other produces, coming up with learning institutions such as kindergarten schools and day care centers for business mothers, and building small restaurants to sell food and other eateries (Saurabh & Shah 2015). In general, entrepreneurship have helped people in developing nations to alleviate poverty levels to significant degree by providing entrepreneurs with markets for their goods, avenues of making money, providing casual jobs that most government in developing nations are not able to offer.
It is important for people to note that the type of entrepreneurship found in developing nations if quite different from that found in developed countries. Some of the good sold by entrepreneurs in developing countries include chicken for poultry and eggs, peanuts, household goods and food staffs to mention but a few. Thus according to research, business men and women in developing countries have taken entrepreneurship to the next level (Minniti, 2011). Secondly, the small businesses that the entrepreneurs engage in have helped to reduce poverty to a given degree. It is also important to note that entrepreneurship has helped people living in developing nations to deal with poverty issues in various ways. Some of the methods used by entrepreneurs to fight poverty in the developing countries include
As stated above, various business organizations collaborate with budding entrepreneurs in developing countries to help fight poverty (Chen & Andersen, 2009). Most of upcoming entrepreneurs usually lack capital for starting their small businesses. As such different financial and not or profit organizations have developed the growth or small business in the developing nations by making it easy to the business men and women to get access to financial resources. The ability to get starting capitals makes it possible for many people to start their small business. Once they have started the business, the people are able to pay back the leans to make enough financial sources for their use. Similarly, entrepreneurship has made it easy for men and women to save money for educating their children up to higher levels of education such as universities (Vadenberg, 2012).
Entpreneurship also help business men and women to save money small bit as they continue to make some money for their immediate use. Therefore, through engagement in entrepreneurial activities, the men, women, and young people who engage in such activates are able young ne means that they are prepared for better poverty free future. Through such business ventures, people are able to acquire financial resources for continuing their businesses. The money accrued from these business activities also makes it possible for them to meet other basic need such as shelter, food, and clothing (Simon, 2012). Some of them are also able to improve their living standards from below to above poverty lines. Thus, entrepreneurship makes it possible for people in developing countries to acquire financial resources for daily operations. Financial resources also help alleviating poverty by making it possible for such people to get food and even engage in other food production methods such as agriculture.
One such institution that has research on the availability of financial resources for personal and business use is Kiva. Kiva initiated their mission in 2005 and has since reached out to 1.3 million people to obtain $690 million to almost 1.6 borrowers who re entrepreneurs in 0ver 86 countries worldwide. They state that of all the 1.6 million people, 50 percent of them have been able to start and run stable small businesses that have made the change their life styles in various ways. Similarly, 70 percent of all the loans given out by Kiva have been directed to women to help improve financial resources availability to them (Kiva, 2015).
Goods and Services to Be Sold
Methods of entrepreneurship have made it possible for small scale business men and women in developing countries to gain access to good and services to be sold. Some people have been able to identify a niche that requires different types of goods and services rendered to them. For example, most people in developing countries will have the need to food products, beauty services, and simple labour to enable their business to run effectively. (McKinsey&Company, 2009) In so doing, many entrepreneurs have been able to use locally available raw materials to make the goods they need to sell to their clients. For example, entrepreneurs in the art and design industry have been creative enough to use available materials such as egg shells to come up with beautiful works of art that their clients can buy. Some of them also use locally available materials such as canvas to make their art work. On the same note, business men and women who take part in the sale of firm products usually require manure t make their yield abundant. However, they find it difficult to acquire industrially manufactured fertilizers because they are expensive. Therefore, some of these farmers turn to the use of homemade manures to grow crops and make them available to their clients (Hussein & Buhyian, 2014). This is to say that entrepreneurship has empowered man people in developing countries to be critical thinkers, creators, and innovators. In so doing, they have been able to sustain their businesses by being able to produce goods and services for their use.
Some entrepreneurs in developing nations have also identified the need to render quick and cheap financial services, which also allow them to make money for their daily use. Rendering services such as hairdressing, and easy to access financial services make it possible for business owners to reach out to many people hence make money for their use. Providing such services through entrepreneurship makes it possible, for the entrepreneurs to earn money that alleviate poverty in their daily living standards. Therefore, through entrepreneurship, businesspeople in developing nations have been able to make goods and services available for the consumptions of their clients and for their won consumption. This has made it possible for them to alleviate poverty to a given degree (Abraham, 2012).
Supporting men and women groups
According to Tavakoli- Far (2015), entrepreneurship opportunities have been used in many developing nations to support budding business men and women. Entrepreneurial activities have been able to enable men and women to come up in small groups to form teams that function together to raise funds for improving their living standards. Business people with the same goal and expectations have come together with varied business ideas that will help them earn money to improve their living standards. It is uncommon to find various youth groups who have been empowered through entrepreneurial skill. These skills have also helped them earn money and create their own jobs. Some of these groups have even been able to employ other jobless youths and adults and given them the opportunities to earned descent living (Acs & Virgil, 2010). Many developing countries have youth groups that work together to do businesses such as supplying food staffs, building materials and learning materials in various capacities. These young men get paid for their efforts. They use the money accrued to continue the businesses and to improve their living standards. Secondly, many developing countries have brought various women together through small likeminded business groups with the aim of improving their living standards. Such women engage in collective, saving, and lending money at given interest rates (Crook, 2002). They use the accrued interest to start other business venture or use it to improve their living standards.
Marketing and Product Development
Many budding and established small scale business men and women have been able to use entrepreneurial skills to market their goods and services. They have been able to use business platforms in their counties to make their intended clients aware of the goods and services they produce (Hymowitz, 2010). On the same note, entrepreneurship have made it possible for small scale business people in developing nations to rich various global markets through different methods of marketing. On the same note, by entrepreneurial skills, the entrepreneurs in developing countries have been able to come up with various methods of developing their products. As started above, most of them are creative and critical thinkers who are able to identify changes in their market and use readily available raw materials to develop products for the use of their clients. Some of them use bones, leaves, and even wood to make products or their identified niche. Being able to use entrepreneurship skills to make good and sell them to clients also makes it possible to thee business men and women to earn money that improves their living standards (Ali & Ali, 2013).
Providing Ready Markets
The entrepreneurs in developing countries have been able to use their acquired entrepreneurial skills to find ready market for their products. Through entprenuership, they have been able to reach local, national and interna...
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