Document Type

Article

Publication Date

6-1-2023

Abstract

This study examines whether and how the experience of poverty shapes the entrepreneurial journey. The research builds upon disadvantage theory to explore how liabilities resulting from the poverty experience can serve as obstacles to the creation of sustainable enterprises. An analysis of data from a sample of 202 entrepreneurs in poverty contexts in the USA demonstrates how liability of poorness (LOP) factors leads to the emergence of more fragile ventures. The findings further indicate that entrepreneurial alertness can moderate the effect of LOP on venture fragility. The study offers theoretical and practical suggestions for further understanding and fostering entrepreneurship as a viable solution to poverty.

Publication Source (Journal or Book title)

Small Business Economics

First Page

305

Last Page

323

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