Entrepreneurship has proven to provide impactful innovations for poverty alleviation. Poverty in its totality and general sense is the state of being extremely poor whereas entrepreneurship is the activity of setting up a business or businesses, taking on financial risks in the hope of profit.
The true and actual fact is that nobody wants to be poor. The many causes of poverty are complicated and the subject of much debate.
Education is one of the major reasons why people are said to be poor. Twenty-four percent of the people without a high school education are currently facing poverty. We also know that where you live dictates which kind of schools you attend and the opportunities you experience. If you live in a rural area, there is no doubt that that the schools you’d attend may not contribute much to that wealthy future you’ve always dreamed of. Also, if your parents live in poverty, you will likely live in poverty. Poverty sometimes, can be intergenerational.
This is where the idea of social entrepreneurship comes in. If you went to the worst schools in any state, there is a smaller chance that you will attend college and receive a degree needed to secure a good salary in a traditional job.
However, if you were to start a landscaping business, you could achieve a six-figure income while also creating wealth through business equity. In fact, a recent survey found that more than half of entrepreneurs have less than a
four-year degree and 25 percent have a high school degree or less.
Not only does entrepreneurship remove educational barriers, it also leads to higher wages. When you have control for education, ability, parental income, and more, entrepreneurs’ incomes are higher than those of people working traditional jobs. This is especially true in low-income areas, where
individuals who are self employed and incorporated have the highest average income in a community, coming in at $67,000 a year.
But entrepreneurship does not only benefit the entrepreneur; it also benefits their community. When a business is created in a community, it creates local jobs, helps keep money circulating in the community, and often pulls in money from other communities.
Approximately two-thirds of jobs are created by small businesses, and 30 percent of those are from new establishments.
So you see, entrepreneurship among those in poverty will create a long lasting solution to their poverty. With the little capital you have now, you are sure to start up something that will yield a huge profit.
However, there are still some people that choose to remain poor. It might be surprising but then, it’s the truth though this might be done in an indirect manner.
To know more of how people choose to remain in poverty, visit https://highriselines.com/10-habits-of-poor-people-that-keep-them-poor/