Poor people are business owners, too – but myths around poverty and entrepreneurship hold them back

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Here are six facts that people should know about poverty and entrepreneurship.

Nearly 1 in 5 people in the world live in poverty. Even in many developed countries such as the U.S., poverty rates, I’m interested in a critical question: Can people in poverty create their own path to prosperity? In other words, is venture creation a viable poverty alleviation tool?A big part of the problem is ignorance: Most people simply don’t know much about poverty and entrepreneurship.

And they create more than just economic value: These businesses are embedded in the fabric of communities, providing a source of social stability. They pay taxes and cangreater reductions in poverty To realize the potential of entrepreneurship, it’s worth rethinking the definition of success. For the poor, success could be getting the business established and making sales, earning a profit. It could be changing the entrepreneur’s economic circumstances, hiring employees – particularly others in poverty – or adding another location.

 

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