Global Entrepreneurship

Tuesday, March 16, 2010

Global Poverty Solutions Based on Entrepreneurship and Innovation

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In the past few decades, the government has spent billions of dollars trying to help alleviate poverty in under-developed nations. Despite the great amount of economic funding that has been invested in combating the world poverty crisis, global poverty rates remain high; this is evidence of the ineffectiveness of the top-down government funding as a strategy to reduce global poverty. Other solutions to ending international poverty have relied on grassroots and humanitarian efforts, all of which are predominantly aid-based initiatives.

The inefficiency of these aid-based approaches has engendered a different type of strategy to ending global poverty, one that strays from the traditional structure and governing authority. This strategy relies on enterprise-based solutions to foster social change and top-down economic growth. Unlike aid-based efforts, which are primarily government funded and supply aid in the form of capital to under-developed nations, this solution is based in the private sector. This innovative approach to eradicating poverty is a somewhat controversial one that is often hastily dismissed based on social stigmas that view the private sector as a purely self-serving industry. The misconception that business-based poverty initiatives cannot encourage positive social change is dispelled upon closer inspection of innovative private sector solutions, however.

Relying on the private sector to help resolve public issues may seem unfitting; however, entrepreneurial solutions to global poverty offer a number of advantages over traditional public sector initiatives. These private sector initiatives are less centered on philanthropic donations, which have thus far ultimately failed to effective combat global poverty. Instead, enterprise-based solutions to end poverty are focused on economic integration, and spurring increased productivity and overall growth. In doing so, private sector strategies are supplying poorer nations with a much more sustainable resource than capital donations; gaining an understanding of new markets provides these nations with the tools to generate their own wealth on an ongoing basis.

Part of the goal of these enterprise-based solutions to global poverty in promoting economic growth necessarily involves social growth and progress. Grants and private sector funding is used to support initiatives that help build business prosperity in destitute nations around the world. Websites, literature, research, and films are just a few of the mediums used to raise awareness of the potential of this innovative approach; moreover, though, these new initiatives are used to support progressive social leaders in nations that lack the societal systems needed to allow technological advancement to thrive. Establishing democratic values and free market economies is a necessary requisite to economic growth in under-developed nations, and are also beneficial from a humanitarian standpoint. In this way, enterprise-based solutions to global poverty are beneficial both in facilitating economic growth and encourage over societal progress and well-being.

By : Timothy L

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Labels: business, business plan, entrepreneurs, entrepreneurship, global entrepreneurship