An Anatomy of Entrepreneurial Pursuits in Relation to Poverty

Douglas Cumming* (Corresponding Author), Sofia Johan, Ikenna Uzuegbunam

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)
4 Downloads (Pure)

Abstract

This study examines the causal relationships between inequality, poverty, and entrepreneurship. We hypothesize that income inequality influences entrepreneurial activity, and entrepreneurial activity alleviates absolute poverty. Findings from a longitudinal analyses of a dataset from all 50 U.S. states over an 18-year period provide robust support for these hypotheses. Furthermore,
the results suggest that antipoverty public policy aimed at encouraging work (i.e. Earned income tax credit, EITC) can be detrimental to entrepreneurial activity. These findings underscore the importance of linking public policy efforts aimed at poverty alleviation with those aimed at encouraging additional entrepreneurship.
Original languageEnglish
Pages (from-to)21-40
Number of pages20
JournalEntrepreneurship and Regional Development
Volume32
Issue number1-2
Early online date15 Jul 2019
DOIs
Publication statusPublished - Jan 2020

Bibliographical note

All authors contributed equally to this research. We owe thanks to the Editors Steven Si, David Ahlstrom, John Cullen, and Jiang Wei, as well as three anonymous reviewers, for very helpful comments and suggestions. Also, we owe thanks to the seminar participants at the Academy of Management, British Academy of Management, Strategic Management Society, and the Law and Entrepreneurship Retreat at the University of Alabama. Douglas Cumming and Sofia Johan owe thanks to the Social Sciences and Humanities Research Council of Canada for Financial Support. The authors also thank the University of Kentucky Poverty Research Center for access to some of the data used in this research.

Keywords

  • Entrepreneurial activity
  • development
  • income inequality
  • opportunity
  • poverty
  • public policy
  • MICROFINANCE
  • SUCCESS
  • CHINA
  • FIRMS
  • INNOVATION
  • RESEARCH GO
  • POLICY
  • YOUNG
  • INCOME
  • GROWTH

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