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S. Wyatt Shely
Ms. Caruso
UWRT 1103-037
16 November 2015
Solutions for Poverty Reduction
Billions of people in todays society experience the debilitating effects of poverty: loss of
dignity, deprivation of basic necessities, and crippled ability to thrive in society. Although there
have been efforts to reduce the disheartening effects of this issue, the prevalence is still widely
noticeable across the globe, especially in underdeveloped countries.

Poverty is a

multidimensional problem that requires a multidimensional solution. Solely focusing on


government methods for alleviating poverty is not a convincing approach. Instead, societies
must incorporate internal elements such as disruptive innovation and new venture creation
(Bruton 14). Increasing entrepreneurship and innovation is the most critical step for poverty
reduction within a society. Distributing entrepreneurial business guides serve as an applicable
strategy to increase entrepreneurship among impoverished societies. In order to continue
alleviating poverty, education and healthcare standards should also be enhanced.
There is a negative correlation between economic growth and poverty. As a society
experiences growth in their economy, the poverty rate is reduced. The most effective method to
grow an economy is to develop new businesses that not only provide an avenue for new jobs
and incomes, but also increase healthy economic competition (Shirima 3). Impoverished
societies lack job opportunities that provide incomes to support families. The key to counter this
unfortunate circumstance is to promote the benefits of entrepreneurship. Now, how does one go
about promoting entrepreneurship? This is the simple question that led to the creation of

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entrepreneur guides. Poverty is a real world problem that calls for a real world solution. By
developing a guide that teaches readers about the benefits of pursuing entrepreneurship, as well
as basic business rules, impoverished individuals have a better chance of success at pursuing and
excelling in self-employment. Societies whose institutions, politics and culture hinders
entrepreneurship, do not experience the increase in development of societies that do actively
promote entrepreneurship development (Oghojafor 8). Different regions of China have
exemplified undeniable proof of this theory throughout the past few decades. In fact, this nation
is noted for a poverty reduction of more than 630 million people since the 1980s (Jacket).
By investigating countries that have had incredibly drastic reductions in poverty, the
international community might discover encouraging processes to employ in different
geographic regions.
Coinciding with the statements presented earlier, Chinas poverty was alleviated while
also experiencing economic growth, primarily from small business creation. Research
performed on over 700 manufacturing firms in the Yangzi region, has led to the notion that
entrepreneurs in the region, despite the strict Chinese government, created institutional
innovations that led them to start up and grow small, private manufacturing firms (Jacket).
As these manufacturing firms began to grow, aspects characteristic of private enterprise
economies developed along with them. This new private enterprise economy spread like wildfire
throughout the rest of the country. The resulting economic growth, wealth creation, and
manufacturing jobs caused the establishment of China to acknowledge the numerous benefits of
utilizing a private enterprise economy (Jacket). The innovative entrepreneurs that founded
manufacturing firms in the Yangzi region, serves as a symbolic difference in job creation for
China; a job creation that helped cause an incredible reduction in poverty.

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The causal relationship between the increase of entrepreneurship and poverty alleviation
is further exemplified by a case study of the Chinese City of Yiwu. In the 1980s, Yiwu was
considered an example of desperate poverty (Si 123). Throughout the past few decades, Yiwu
inhabitants began escaping poverty through their own efforts. These efforts included innovative
and entrepreneurial strategies that shed light on a progression of new business opportunities.
Yiwus steps of poverty alleviation, as a result of entrepreneurship, include:
(1) A shift from passive to active attitudes and behavior towards fighting poverty;
(2) Causal mutual interactions among the regions impoverished people and the
people they saw emerging from poverty; (3) The pursuit of small profits rather
than maximized profits; and (4) The creation of disruptive business models
conducive to poverty reduction by people acting both as consumers and
producers. (Si 130)
This depicts Yiwus progression to become a universal example of how effective
entrepreneurship is a favorable route toward poverty alleviation. It is an inspiring notion that
these steps of pro-entrepreneurship strategies can be emulated in different regions of the world in
hopes to reduce poverty on a global scale.
Undeniably, entrepreneurship reduces poverty. Figuring out a way to produce more
entrepreneurs is critical in order to further decrease the poverty rate. A study of undergraduate
students at Obafemi Awolowo University in Nigeria, shows that entrepreneurship education is a
key factor to increase ones attitude of self-employment. Out of a group of students that received
entrepreneur education, 94% of respondents indicated their preference for self-employment,
while the group that was not educated in entrepreneurship resulted in 14.7% of respondents
preferring self-employment (Obisanya). Clearly, impoverished societies need a source of

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entrepreneur education that will not only teach them about the benefits and characteristics of an
entrepreneur, but will also explain basic business concepts that are necessary to be successful
when starting ones own business. This is the role of the entrepreneurial business guide, Be an
Entrepreneur | Build a Business | Escape Poverty. It simplifies complicated business ideas by
explaining them through the development of a lemonade stand business. This concrete scenario
of a lemonade stand business eliminates ambiguity, while also maintaining real-world
applicability. The step-by-step guide is created for impoverished individuals across the globe.
Entrepreneurship is not limited by geographic location. There are successful business developers
all around the world. In order to receive the funding and distribution channel necessary to get Be
an Entrepreneur | Build a Business | Escape Poverty into the hands of those in poverty, the
publication rights will be given to HOPE International. This is an organization that invests in the
lives of those living in poverty, focusing on encouraging saving and entrepreneurship in
countries around the world (Huizinga par. 1). Their mission served as inspiration for the
development of the entrepreneur guide. When members of HOPE International travel to various
countries, they will be equipped with an effective educational tool that will help spread the
message about the power of entrepreneurship. As the message is spread, poverty will be reduced
one business at a time. Remember, poverty is an issue of multiple dimensions. These guides are
not the ultimate solution to the problem. To continue reducing poverty, other methods must be
utilized.
Advocates of entrepreneurial approaches for poverty alleviation tend to overlook other
components that are instrumental for the war on poverty. Both education, especially primary
education, and healthcare should have a position in the conversation of poverty reduction.
Considering that Education gives people the knowledge and tools to break the cycle of

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poverty, it becomes clear that education should hold a significant role when attempting to
alleviate poverty (Burnett sec. 1). Furthermore, the literacy rate among underdeveloped nations
is substantially lower than that of more developed nations. This expresses the urgent demand for
education in impoverished countries. The idea that education will aid and reverse the trajectory
of destitute populations is validated by the findings of two separate research groups studying two
completely different geographical regions. The findings of Jung, Cho, and Roberts, studying
poverty in the Southern United States, have concluded that poverty rates have been reduced by
the expansion in education funding (Jung Abstract). Similarly, it has been found that China is
experiencing a decrease in poverty through the support of primary education (Song Abstract).
Therefore, it can be concluded that targeting funding toward education will be beneficial for
impoverished societies. The 1989 Convention on the Rights of the Child, under the United
Nations, also recognized the need for primary education to be made compulsory and freely
available to all (Burnett sec. 2). Taking into account immense similarities of these preceding
conclusions, governments of underdeveloped countries should focus on strategies that provide
quality primary schooling for all of their citizens. The upside of increasing the literacy rate
while decreasing the poverty rate clearly outweighs the initial cost of supplying free primary
education. In the long run, all societies will benefit from the investment in the young
populations education.
Mentioned earlier, it is understood that entrepreneurship is not the end all be all solution
to eradicate poverty. Relating to educations benefits for poverty, improving healthcare will
yield similar results. It has been concluded by many sources that those who live in
povertyexperience more health problems and shorter life spans (Gien sec. 2). When
comparing the healthcare standards and spending of impoverished nations to more developed

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nations, there are obvious disparities. Even differences in healthcare funding of different
counties in the United States create variations in the poverty rates (Jung Abstract). It is
important to note that simply throwing money into a healthcare system will not magically
diminish the poverty rate. Much like smart business planning, it is critical to identify what
avenues, if funded, will create a positive impact. One possible method is to provide funding for
more social workers, as well as enhance the quality of their training. This was one of the many
successful strategies used in a project in Vietnam that reduced the poverty by over eight percent
(Gien sec. 2, 7). Another approach is to contract primary healthcare out to non-state providers;
providers outside of the public sector, whether commercial or philanthropic. This will aid in the
sufficient provision of the majority of healthcare needs. Afghanistan has effectively
implemented this strategy to give priority access to the population groups greatest in need,
such as those living in poverty (Trani sec. 1). Evidently, meeting healthcare needs will cause
beneficial differences toward impoverished societies. It is critical to equip strategies to reduce
poverty with a comprehensive plan addressing healthcare needs. Adequate funding along with a
method for accurately targeting low-income individuals, are necessary to detach the shackles of
poverty.
Poverty is a solvable problem in need of a specific multifaceted strategy. An effective
formula to alleviate poverty is the combination of the provision of free primary education,
quality healthcare, and most importantly, education in entrepreneurship. The increase in
entrepreneurship and the development of new businesses offer the surest route to economic
growth and development, including job creation (Bruton 4). Be an Entrepreneur | Build a
Business | Escape Poverty is one tool to promote entrepreneurship education, but it is crucial that
scholars, nonprofit organizations, and philanthropists alike, continue researching ways to educate

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communities about business creation. Find ways to help them get back on their feet, take control
of their own destiny, and climb their way out of poverty through their business.

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Works Cited
Original Sources
Oghojafor, Akpoyomare, Olayemi, Olabode, Okonji, Sunday, and Olaywola. Entrepreneurship
as a Intervention Strategy to Poverty Alleviation in Developing Economy. International
Entrepreneurship Forum. University of Essex, Jan. 2011. Web. 30 Sept. 2015. PDF file.
Shirima, Ludovick. "Alleviating Poverty Through Innovation and Entrepreneurship." Web. 29
Sept. 2015. PDF file.

New Sources
Bruton, Garry D, David Ahlstrom, and Steven Si. "Entrepreneurship, Poverty, and Asia: Moving
Beyond Subsistence Entrepreneurship." Asia Pacific Journal of Management. 32.1
(2015): 1-22. Print.
Burnett, Nicholas. "Education for Allan Imperative for Reducing Poverty." Annals of the New
York Academy of Sciences. 1136.1 (2008): 269-275. Print.
Gien, Lan, Sharon Taylor, Ken Barter, Nguyen Tiep, Bui X. Mai, and Nguyen T. Lan.
"Education Article: Poverty Reduction by Improving Health and Social Services in
Vietnam." Nursing and Health Sciences. 9.4 (2007): 304-309. Print.
Huizinga, Daniel. "Fighting Poverty with Entrepreneurship." Consider Again. WordPress, 17
Jan. 2015. Web. 17 Nov. 2015.
Jacket. Summary. Nee, Victor, and Sonja Opper. Capitalism from Below: Markets and
Institutional Change in China. Cambridge, Mass: Harvard University Press, 2012. Print.
Jung, Suhyun, Seong-Hoon Cho, and Roland K. Roberts. "The Impact of Government Funding
of Poverty Reduction Programmes." Papers in Regional Science. 94.3 (2015). Print.

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Obisanya, J.F, C.A.O Akinbami, and A.O Fayomi. Summary. "Entrepreneurship Education and
Undergraduates' Attitude to Self-Employment : a Case Study of a Nigerian University."
Ife Psychologia : an International Journal. 18.2 (2010): 87-107. Print.
Si, Steven, Xuebao Yu, Aiqi Wu, Shouming Chen, Song Chen, and Yiyi Su. "Entrepreneurship
and Poverty Reduction: a Case Study of Yiwu, China." Asia Pacific Journal of
Management. 32.1 (2015): 119-143. Print.
Song, Yang. "Poverty Reduction in China: the Contribution of Popularizing Primary Education."
China & World Economy. 20.1 (2012): 105-122. Print.
Trani, JF, P Bakhshi, AA Noor, D Lopez, and A Mashkoor. "Poverty, Vulnerability, and
Provision of Healthcare in Afghanistan." Social Science & Medicine (1982). 70.11
(2010): 1745-55. Print.