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The Liability of Poorness: Why the Playing Field is Not Level for Poverty Entrepreneurs
Poverty & Public Policy Pub Date : 2020-09-01 , DOI: 10.1002/pop4.283
Michael H. Morris 1
Affiliation  

Entrepreneurship is increasingly emphasized as a pathway out of poverty. However, the complex, multi-faceted nature of the poverty experience has important implications for the ability to launch and sustain viable businesses. All entrepreneurs must overcome the liabilities of newness and smallness, as reflected in a lack of legitimacy with stakeholders, inadequate resources and capabilities, an unclear identity, misunderstood roles and unclear role definitions, few established routines and procedures, and little bargaining power. However, poverty entrepreneurs face an additional barrier, which we term the liability of poorness. Four underlying dimensions of the liability of poorness are identified: literacy shortcomings, a scarcity mindset, significant non-business distractions, and the lack of financial slack or a safety net. The manner in which each of these interacting elements exacerbate the entrepreneur's ability to address the liabilities of newness and smallness is explored. It is argued that, as the liability of poorness becomes greater, the vulnerability and fragility of the poverty entrepreneur's venture are apt to increase. Under such circumstances, significant external shocks and unexpected occurrences, such as the economic shutdown resulting from the COVID-19 pandemic, typically have a more devastating impact on the ventures of the poor. Policies are needed to level the playing field.

中文翻译:

贫困的责任:为什么贫困企业家的竞争环境不公平

越来越多地强调企业家精神是摆脱贫困的途径。然而,贫困经历的复杂性和多面性对启动和维持可行企业的能力具有重要影响。所有企业家都必须克服新奇和小众的责任,这体现在与利益相关者之间缺乏合法性、资源和能力不足、身份不明确、角色被误解和角色定义不明确、既定的惯例和程序很少、议价能力很小。然而,贫困企业家面临着一个额外的障碍,我们称之为贫困责任。确定了贫困责任的四个基本维度:识字缺陷、稀缺心态、重大的非商业干扰以及缺乏财务松弛或安全网。探讨了这些相互作用的元素中的每一个都以何种方式加剧了企业家解决新奇和小缺陷的能力。有人认为,随着贫困责任的增加,贫困企业家创业的脆弱性和脆弱性往往会增加。在这种情况下,重大的外部冲击和意外事件(例如 COVID-19 大流行导致的经济停摆)通常会对穷人的企业产生更具破坏性的影响。需要政策来平衡竞争环境。风险容易增加。在这种情况下,重大的外部冲击和意外事件(例如 COVID-19 大流行导致的经济停摆)通常会对穷人的企业产生更具破坏性的影响。需要政策来平衡竞争环境。风险容易增加。在这种情况下,重大的外部冲击和意外事件(例如 COVID-19 大流行导致的经济停摆)通常会对穷人的企业产生更具破坏性的影响。需要政策来平衡竞争环境。
更新日期:2020-09-01
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