Template-type: ReDIF-Paper 1.0
Author-Name: Rodriguez Torres, Omar
Author-Email: orodriguez@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Does entrepreneurship increase the chance of the poor?
Abstract: This paper investigates how entrepreneurship affects the likelihood of
	 households graduating out of poverty. It analyses the effect of
	 entrepreneurship in the outcomes of the households enrolled in the
	 Colombian poverty reduction programme. A contribution to the Capability
	 Approach is proposed with the inclusion of entrepreneurship as a
	 'functioning' linked to overcoming poverty. Entrepreneurship presents a
	 great potential given its multidimensional nature. In its more basic
	 conception, it is connected to income-generation, and in its more
	 complex conception, it is related to the concept of agency. Using the
	 Colombian UNIDOS programme (which is a programme focused on helping poor
	 graduating out of poverty) as a case study, we employ a Probit
	 Regression model with sample selection to model this mechanism. The
	 results present a positive, statistically significant impact of
	 entrepreneurial households in their probability of graduating out of
	 poverty. The results confirmed that entrepreneurial households show a
	 higher likelihood of escaping from poverty.
Classification-JEL: I31, I32, L26, J48, L53
Keywords: Capability approach, poverty reduction, entrepreneurship, public policy,
	 enterprise policy
Series: UNU-MERIT Working Papers
Creation-Date: 20210428
Number: 2021-018
File-URL: https://unu-merit.nl/publications/wppdf/2021/wp2021-018.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2021018