Poverty and Enterprise

Abstract

Across a range of social sciences, enterprise development (the development of small businesses) has been seen as one of the key elements for development out of poverty (Panda, 2000). In economics, for instance, enterprise developers (or entrepreneurs) have been viewed as key innovators in developing economies, because they create new products, means of production, markets, supplies, and forms of organisation (Schumpeter, 1934). In sociology, entrepreneurs are seen as the creators and co-ordinators of forms of social organisation, from the inception of the group, through its maintenance, to its expansion (Bhanushali, 1987). In psychology, enterprise development has been seen primarily as a function of the personality of the entrepreneur, and in particular as being dependent on the entrepreneur’s level of Need for Achievement (nAch) (McClelland, 1987). However, the nAch approach has been criticized in the recent psychological literature on poverty, for its lack of attention to social context, and in particular for its inherent individualism (Carr, McAuliffe, & MacLachlan, 1998). In development studies, nAch has come under fire for failing to predict economic growth in a global setting (Lewis, 1991). Addressing each of these concerns simultaneously, this chapter describes an alternative approach to enterprise development that is as much anchored in traditional values as it is attuned to the global economy.