ENTREPRENEURIAL

OPPORTUNITIES AND
POVERTY ALLEVIATION
Sharon A. Alvarez Jay B. Barney
2013
PURPUSE AND
METHODOLOGY
Purpose: To examine entrepreneurship in extreme
poverty, focusing on types of opportunities, requirements,
and implications for economic growth.

Methodology: Qualitative research and synthesis of

existing literature, case examples
TABLE OF CONTENT
SELF - EMPLYMENT
OPPORTUNITIES
DISCOVERY
OPPORTUNITIES
CREATION
OPPORTUNITIES
REASERCH IMPLICATIONS
AND FURTHER DIRETIONS
SELF - EMPLYMENT
OPPORTUNITIES

Limited Return Potential for Abject Poverty Individuals

Limited Job Creation and Economic Sustainability
Barriers to Entry and Imitation
Overinvestment in Particular Opportunities
Supply Exceeds Demand
Debt and Defaults
Impact on Competing Businesses
 DISCOVERY
OPPORTUNITIES
Human Capital includes general education and industry-related knowledge.
Alertness is a key attribute for recognizing opportunities.
Case study "cockroach taxicabs" in South Africa, illustrating Sibusiso's
successful opportunity exploitation.
Barrier to Entry created by Sibusiso's unique skills and knowledge.
Context-Specific Knowledge is essential for adapting opportunities to new
contexts.
Sibusiso's Exceptional Success underscores the role of specific advantages.
Lack of Property Rights Protection as a hindrance to wealth building,
particularly in impoverished situations.
 CREATION OF OPPORTUNITIES

Formation of Creation Opportunities in extreme poverty

Trial and Error Experiments to find effective approaches
Inspiration from figures like Sibusiso and Muhammed Yunus
General Human Capital Skills development
Skills acquired from prior experiences
Path-Dependent Learning through testing hypotheses and
skill refinement
 RESEARCH IMPLICATIONS
AND FUTURE DIRECTIONS
Focus on co-creation of opportunities in international
settings

Role of diasporas, foreign direct investment

Integrating entrepreneurship into the theory of the firm

Exploring "institutional friction" and adaptation