Necessity Entrepreneurs

Necessity Entrepreneurs

Microenterprise Education and Economic Development

Edited by Jeremi Brewer and Stephen W. Gibson

Necessity entrepreneurs, in developing countries, are individuals who start small enterprises out of necessity. While they range from street sellers to educated hopefuls with little access to formal employment, the one thing that unites them is the need to survive. This volume is the first-known compilation of theories contributed by international scholars who have worked together to establish a theory-based discourse on necessity entrepreneurship, micro-enterprise education, and long-term economic development.

Chapter 4: Necessity entrepreneurs: transforming illiterate mothers into businesswomen

John Hatch

Subjects: business and management, entrepreneurship, family business, development studies, social entrepreneurship


This chapter begins with an attempt to place my own brackets on the definition of who is a 'necessity entrepreneur'. This catchy term attracts me precisely because it brings together two strong and value-laden terms - one inclusive, one potentially exclusive - that for many would seem contradictory. Does 'necessity' explicitly include those persons or households who are considered 'poor', 'very poor', or even 'destitute'? Does the term 'entrepreneur' presume a minimum level of skills, education, or personality traits whose absence would disqualify an illiterate mother from acting entrepreneurially and running a sustainable business? These questions acquire added significance when we consider that the global microfinance move - despite its poverty-alleviation rhetoric - has generally failed to focus its attention and resources on serving the 'bottom billion', the roughly one-fifth of the human family that lives on less than $1/day. And the face that best represents this terribly disadvantaged and neglected sector is that of an illiterate mother and sole breadwinner for three or more dependents, who has lost or been abandoned by her husband.

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