The traditional macroeconomic approach to poverty alleviation in neighborhoods and communities is to use housing development and job-creation programs to address the income and the opportunity gaps. Entrepreneurship is a much less used poverty alleviation strategy that, in our estimation, can have a significant effect in favorable policy environments. After a brief literature review, we highlight policy approaches that use entrepreneurship as a poverty alleviation strategy. We present several case studies from the United States as evidence of how public policy can empower an entrepreneurial ecosystem to support the self-employed and other low-income entrepreneurs. We conclude with a framework for how public policy can alleviate poverty through entrepreneurship that is generalizable in other contexts.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics and Econometrics
- Strategy and Management
- Poverty alleviation
- economic development