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Microenterprise Growth At The Base Of The Pyramid: A Resource-Based Perspective

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  • JUSTIN W. WEBB

    (School of Entrepreneurship, Oklahoma State University, Stillwater, OK USA 75078, USA)

  • MICHAEL H. MORRIS

    (Warrington College of Business Administration, University of Florida Gainesville, FL USA 32611, USA)

  • RUBIN PILLAY

    (School of Entrepreneurship, Oklahoma State University, Stillwater, Oklahoma, USA 74078, USA)

Abstract

In a base-of-the-pyramid context, the ability to start ventures is often quite robust because micro-entrepreneurs are able to start with few resources and can often sustain ventures for extended lengths of time in the absence of meaningful revenues. Yet, the ability to grow ventures tends to be much more problematic. This paper examines the role of resources in yielding competitive advantage for microenterprises in base-of-the-pyramid markets, arguing that the value of resources is a function of their ability to supplement formal institutional voids. We consider access to formal infrastructure, assets that provide stability and business skills as potential sources of competitive advantage. We also examine the effect of resource allocation tactics on microenterprise growth. We test our theory using a sample of South African microenterprise owners. Implications are drawn for ongoing theory development and practice.

Suggested Citation

  • Justin W. Webb & Michael H. Morris & Rubin Pillay, 2013. "Microenterprise Growth At The Base Of The Pyramid: A Resource-Based Perspective," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-20.
    • Handle: RePEc:wsi:jdexxx:v:18:y:2013:i:04:n:s108494671350026x
    DOI: 10.1142/S108494671350026X
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    References listed on IDEAS

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    1. Colette Muller, 2003. "Measuring South Africa’s Informal Sector: An Analysis of National Household Surveys," Working Papers 03071, University of Cape Town, Development Policy Research Unit.
    2. Feinstein,Charles H., 2005. "An Economic History of South Africa," Cambridge Books, Cambridge University Press, number 9780521616416.
    3. Feinstein,Charles H., 2005. "An Economic History of South Africa," Cambridge Books, Cambridge University Press, number 9780521850919.
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    Cited by:

    1. Imelda T. Angeles & Ma. Socorro P. Calara & Allan B. Guzman, 2019. "The mediating effect of microfinancing on access to finance and growth of microenterprises: evidence from the Philippines," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-16, December.

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