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‘Helping a Large Number of People Become a Little Less Poor’: The Logic of Survival Entrepreneurs

Author

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  • Erhard Berner

    (Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands.)

  • Georgina Gomez

    (Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands.)

  • Peter Knorringa

    (Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands.)

Abstract

Survival and growth-oriented entrepreneurs follow qualitatively different logics. In this article we retrace the scattered previous theorization of this distinction and present a consolidated set of key characteristics of the two types of enterprises, enriched by our own observations in the field. Our main purpose is to typify the different rationalities of the two groups of entrepreneurs. Second, we argue that because most existing interventions are based on the implicit assumption that all entrepreneurs are growth-oriented, they often fail to address the specific needs of survivalists. Finally, we outline an intervention rationale more attuned to the logic of survival entrepreneurs.Les entrepreneurs axés sur la survie suivent des logiques qualitativement différentes de ceux dont l′objectif est la croissance économique. Dans cet article nous revenons sur la théorisation déjà vaguement esquissée de cette distinction et présentons un ensemble consolidé des caractéristiques clés des deux types d′entreprises, en nous appuyant sur nos propres observations de terrain. Nous cherchons, en premier lieu, à caractériser les logiques des deux catégories d′entrepreneurs. Puis, nous montrons que les interventions sont généralement fondées sur l′hypothèse implicite que tous les entrepreneurs sont axés sur la croissance. De ce fait, celles-ci répondent mal aux besoins spécifiques des entreprises axées sur la survie. Enfin, nous décrivons une approche d′intervention plus en lien avec la logique des entrepreneurs qui sont axés sur la survie.

Suggested Citation

  • Erhard Berner & Georgina Gomez & Peter Knorringa, 2012. "‘Helping a Large Number of People Become a Little Less Poor’: The Logic of Survival Entrepreneurs," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 24(3), pages 382-396, July.
  • Handle: RePEc:pal:eurjdr:v:24:y:2012:i:3:p:382-396
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    Citations

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    Cited by:

    1. Arthur Sserwanga & Gerrit Rooks, 2013. "Identifying High Potential Entrepreneurs In A Developing Country: A Cluster Analysis Of Ugandan Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 1-15.
    2. Hammad Siddiqi, 2011. "A Creative Institutional Response to Twin Problems of Liquidity and Information Gaps in Certain Emerging Markets," International Review of Finance, International Review of Finance Ltd., vol. 11(4), pages 537-552, December.
    3. Grimm, Michael & Knorringa, Peter & Lay, Jann, 2012. "Constrained Gazelles: High Potentials in West Africa’s Informal Economy," World Development, Elsevier, vol. 40(7), pages 1352-1368.
    4. Ribes-Giner, G. & Moya-Clemente, I. & Cervelló-Royo, R. & Perello-Marin, M.R., 2018. "Domestic economic and social conditions empowering female entrepreneurship," Journal of Business Research, Elsevier, vol. 89(C), pages 182-189.
    5. Crick, Florence & Eskander, Shaikh M.S.U. & Fankhauser, Sam & Diop, Mamadou, 2018. "How do African SMEs respond to climate risks? Evidence from Kenya and Senegal," World Development, Elsevier, vol. 108(C), pages 157-168.
    6. Nathan Fiala, 2015. "Economic Consequences of Forced Displacement," Journal of Development Studies, Taylor & Francis Journals, vol. 51(10), pages 1275-1293, October.
    7. Howell, Rachel & van Beers, Cees & Doorn, Neelke, 2018. "Value capture and value creation: The role of information technology in business models for frugal innovations in Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 227-239.
    8. Meghana Ayyagari & Asli Demirguc-Kunt & Vojislav Maksimovic, 2014. "Who creates jobs in developing countries?," Small Business Economics, Springer, vol. 43(1), pages 75-99, June.
    9. Milo Bianchi, 2010. "Credit constraints, entrepreneurial talent, and economic development," Small Business Economics, Springer, vol. 34(1), pages 93-104, January.
    10. Lahiri, Bidisha & Daramola, Richard, 2023. "Effects of credit and labor constraints on microenterprises and the unintended impact of changes in household endowments: Use of threshold estimation to detect heterogeneity," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 21-38.
    11. Verrest, Hebe, 2013. "Rethinking Microentrepreneurship and Business Development Programs: Vulnerability and Ambition in Low-income Urban Caribbean Households," World Development, Elsevier, vol. 47(C), pages 58-70.
    12. Salmon Mugoda & Stephen Esaku & Rose Kibuka Nakimu & Edward Bbaale & Robert Read, 2020. "The portrait of Uganda’s informal sector: What main obstacles do the sector face?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1843255-184, January.
    13. Amit Basole & Deepankar Basu & Rajesh Bhattacharya, 2014. "Determinants and Impact of Subcontracting: Evidence from India’s Informal Manufacturing Sector," UMASS Amherst Economics Working Papers 2014-04, University of Massachusetts Amherst, Department of Economics.
    14. Kanothi, R.N., 2009. "The dynamics of entrepreneurship in ICT: case of mobile phones downstream services in Kenya," ISS Working Papers - General Series 18727, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    15. Sutter, Christopher & Bruton, Garry D. & Chen, Juanyi, 2019. "Entrepreneurship as a solution to extreme poverty: A review and future research directions," Journal of Business Venturing, Elsevier, vol. 34(1), pages 197-214.
    16. Floridi, Andrea & Demena, Binyam Afewerk & Wagner, Natascha, 2020. "Shedding light on the shadows of informality: A meta-analysis of formalization interventions targeted at informal firms," Labour Economics, Elsevier, vol. 67(C).
    17. Andrea Floridi & Binyam Afewerk Demena & Natascha Wagner, 2022. "A Game Worth The Candle? Meta-Analysis Of The Effects Of Formalization On Firm Performance," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 27(04), pages 1-27, December.
    18. Su, Yiyi & Song, Jialin & Lu, Ying & Fan, Di & Yang, Miles, 2023. "Economic poverty, common prosperity, and underdog entrepreneurship," Journal of Business Research, Elsevier, vol. 165(C).
    19. Fiala, Nathan, 2018. "Returns to microcredit, cash grants and training for male and female microentrepreneurs in Uganda," World Development, Elsevier, vol. 105(C), pages 189-200.
    20. Renji George Amballoor & Shankar B. Naik, 2022. "Sustainability Issues of Women Street Vegetable & Flower Entrepreneurs in Goa: Need for State Interventions," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 83-93, January.
    21. Rosca, Eugenia & Bendul, Julia C., 2019. "Value chain integration of base of the pyramid consumers: An empirical study of drivers and performance outcomes," International Business Review, Elsevier, vol. 28(1), pages 162-176.
    22. Granados, Maria L. & Rosli, Ainurul & Gotsi, Manto, 2022. "Staying poor: Unpacking the process of barefoot institutional entrepreneurship failure," Journal of Business Venturing, Elsevier, vol. 37(3).

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