Policy Brief. Unlocking the Potential of Entrepreneurship to Address Poverty

Poverty remains a formidable challenge, particularly as economic disparities widen and institutional supports show limited efficacy in fostering sustainable mobility for disadvantaged populations. Addressing poverty requires a shift from traditional welfare-oriented support toward empowerment strategies that foster self-sufficiency and economic participation. Entrepreneurship represents a viable pathway, offering the potential for individuals in poverty to create their own employment opportunities, income and futures. The poor face unique obstacles beyond those confronted by all entrepreneurs when starting a business, suggesting they have distinct needs. For their part, public policies to support entrepreneurship by those in poverty are inadequate in addressing these needs.

This brief presents three recommendations that can help unleash the entrepreneurial potential of the poor:

• design targeted policy support tailored to the unique challenges of low-income entrepreneurs
• foster community-based ecosystems that provide critical resources, and
• establish an integrated framework where policy and community action interact effectively.

Recommended Citation: Morris, Michael H. and Reginald Tucker. Unlocking the Potential of Entrepreneurship to Address Poverty. Keough School Policy Brief Series. Notre Dame, IN: Keough School of Global Affairs, 2024. https://doi.org/10.7274/27682056