Shely

S. Wyatt Shely
Ms. Caruso
UWRT 1103-037
16 November 2015
Solutions for Poverty Reduction
Billions of people in todays society experience the debilitating effects of poverty: loss of
dignity, deprivation of basic necessities, and crippled ability to thrive in society. Although there
have been efforts to reduce the disheartening effects of this issue, the prevalence is still widely
noticeable across the globe, especially in underdeveloped countries.

Poverty is a

multidimensional problem that requires a multidimensional solution. Solely focusing on

government methods for alleviating poverty is not a convincing approach. Instead, societies
must incorporate internal elements such as disruptive innovation and new venture creation
(Bruton 14). Increasing entrepreneurship and innovation is the most critical step for poverty
reduction within a society. Distributing entrepreneurial business guides serve as an applicable
strategy to increase entrepreneurship among impoverished societies. In order to continue
alleviating poverty, education and healthcare standards should also be enhanced.
There is a negative correlation between economic growth and poverty. As a society
experiences growth in their economy, the poverty rate is reduced. The most effective method to
grow an economy is to develop new businesses that not only provide an avenue for new jobs
and incomes, but also increase healthy economic competition (Shirima 3). Impoverished
societies lack job opportunities that provide incomes to support families. The key to counter this
unfortunate circumstance is to promote the benefits of entrepreneurship. Now, how does one go
about promoting entrepreneurship? This is the simple question that led to the creation of

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entrepreneur guides. Poverty is a real world problem that calls for a real world solution. By
developing a guide that teaches readers about the benefits of pursuing entrepreneurship, as well
as basic business rules, impoverished individuals have a better chance of success at pursuing and
excelling in self-employment. Societies whose institutions, politics and culture hinders
entrepreneurship, do not experience the increase in development of societies that do actively
promote entrepreneurship development (Oghojafor 8). Different regions of China have
exemplified undeniable proof of this theory throughout the past few decades. In fact, this nation
is noted for a poverty reduction of more than 630 million people since the 1980s (Jacket).
By investigating countries that have had incredibly drastic reductions in poverty, the
international community might discover encouraging processes to employ in different
geographic regions.
Coinciding with the statements presented earlier, Chinas poverty was alleviated while
also experiencing economic growth, primarily from small business creation. Research
performed on over 700 manufacturing firms in the Yangzi region, has led to the notion that
entrepreneurs in the region, despite the strict Chinese government, created institutional
innovations that led them to start up and grow small, private manufacturing firms to develop
these firms (Jacket). As these manufacturing firms began to grow, aspects characteristic of
private enterprise economies developed along with them. This new private enterprise economy
spread like wildfire throughout the rest of the country. The resulting economic growth, wealth
creation, and manufacturing jobs caused the establishment of China to acknowledge the
numerous benefits of utilizing a private enterprise economy (Jacket). The innovative
entrepreneurs that founded manufacturing firms in the Yangzi region, serves as a symbolic

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its repetitive word choice: manufacturing firms. Instead
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same sentence, I paraphrased the quote in order to
maintain a higher quality word choice.
Comment [SS2]: I deleted private enterprise in order to
eliminate repetition from the previous sentence. This
deletion provides a smoother read, while also maintaining
the meaning.

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difference in job creation for China; a job creation that helped cause an incredible reduction in
poverty.
The causal relationship between the increase of entrepreneurship and poverty alleviation
is further exemplified by a case study of the Chinese City of Yiwu. In the 1980s, Yiwu was
considered an example of desperate poverty (Si 123). Throughout the past few decades, Yiwu
inhabitants began escaping poverty through their own efforts. These efforts included innovative
and entrepreneurial strategies that shed light on a progression of new business opportunities.
Yiwus steps of poverty alleviation, as a result of entrepreneurship, include:
(1) A shift from passive to active attitudes and behavior towards fighting poverty;
(2) Causal mutual interactions among the regions impoverished people and the
people they saw emerging from poverty; (3) The pursuit of small profits rather
than maximized profits; and (4) The creation of disruptive business models
conducive to poverty reduction by people acting both as consumers and
producers. (Si 130)
This depicts Yiwus progression to become a universal example of how effective
entrepreneurship is a favorable route toward poverty alleviation. It is an inspiring notion that
these steps of pro-entrepreneurship strategies can be emulated in different regions of the world in
hopes to reduce poverty on a global scale.
Undeniably, entrepreneurship reduces poverty. Figuring out a way to produce more
entrepreneurs is critical in order to further decrease the poverty rate. A study of undergraduate
students at Obafemi Awolowo University in Nigeria, shows that entrepreneurship education is a
key factor to increase ones attitude of self-employment. Out of a group of students that received
entrepreneur education, 94% of respondents indicated their preference for self-employment,

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while the group that was not educated in entrepreneurship resulted in 14.7% of respondents
preferring self-employment (Obisanya). Clearly, impoverished societies need a source of
entrepreneur education that will not only teach them about the benefits and characteristics of an
entrepreneur, but will also explain basic business concepts that are necessary to be successful
when starting ones own business.
^
These needs will be met through the provision This is the role of the entrepreneurial
business guide, Be an Entrepreneur | Build a Business | Escape Poverty. It simplifies
complicated business ideas by explaining them through the development of a lemonade stand
business. This concrete scenario of a lemonade stand business eliminates ambiguity, while also
maintaining real-world applicability. The step-by-step guide is created for impoverished
individuals across the globe. Entrepreneurship is not limited by geographic location. There are
successful business developers all around the world. In order to receive the funding and
distribution channel necessary to get Be an Entrepreneur | Build a Business | Escape Poverty
into the hands of those in poverty, the publication rights will be given to HOPE International.
This is an organization that invests in the lives of those living in poverty, focusing on
encouraging saving and entrepreneurship in countries around the world (Huizinga par. 1). Their
mission served as inspiration for the development of the entrepreneur guide. When members of
HOPE International travel to various countries, they will be equipped with an effective
educational tool that will help spread the message about the power of entrepreneurship. As the
message is spread, poverty will be reduced one business at a time. Remember, poverty is an
issue of multiple dimensions. These guides are not the ultimate solution to the problem. To
continue reducing poverty, other methods must be utilized.

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also changing up to wording in order to have a transition
into the second paragraph. Originally, the paragraph was
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separated. Fortunately, there was a natural transition point
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and led to explaining how to address the problem. This
revision did not change the message, but will allow readers
to better grasp one idea before consciously transitioning to
the next.

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Advocates of entrepreneurial approaches for poverty alleviation tend to overlook other
components that are instrumental for the war on poverty. Both education, especially primary
education, and healthcare should have a position in the conversation of poverty reduction.
Considering that Education gives people the knowledge and tools to break the cycle of
poverty, it becomes clear that education should hold a significant role when attempting to
alleviate poverty (Burnett sec. 1). Furthermore, the literacy rate among underdeveloped nations
is substantially lower than that of more developed nations. This expresses the urgent demand for
education in impoverished countries.
^
The idea that education will aid and reverse the trajectory of destitute populations is
validated by the findings of two separate research groups studying two completely different
geographical regions. The findings of Jung, Cho, and Roberts, studying poverty in the Southern
United States, have concluded that poverty rates have been reduced by the expansion in

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paragraphs, similar to that of the one on page four. Again,
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I did not need to add any words. Due to my revision, my
first paragraph presents the idea that education and
healthcare play a role in poverty reduction. The newly
formed second paragraph separates its message of proof
and validation that increased education standards reduce
poverty. This allows readers to analyze the ideas being
present with more clarity.

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education funding (Jung Abstract). Similarly, it has been found that China is experiencing a
decrease in poverty through the support of primary education (Song Abstract). Therefore, it can
be concluded that targeting funding toward education will be beneficial for impoverished
societies. The 1989 Convention on the Rights of the Child, under the United Nations, also
recognized the need for primary education to be made compulsory and freely available to all
(Burnett sec. 2). Taking into account immense similarities of these preceding conclusions,
governments of underdeveloped countries should focus on strategies that provide quality primary
schooling for all of their citizens. The upside of increasing the literacy rate while decreasing the
poverty rate clearly outweighs the initial cost of supplying free primary education. In the long
run, all societies will benefit from the investment in the young populations education.

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Mentioned earlier, it is understood that entrepreneurship is not the end all be all only
solution to eradicate poverty. Relating to educations benefits for poverty, improving healthcare

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because it is more concise. This strengthens my message by
providing a more effective way to hold my audiences
attention.

will yield similar results. It has been concluded by many sources that those who live in
povertyexperience more health problems and shorter life spans (Gien sec. 2). When
comparing the healthcare standards and spending of impoverished nations to more developed
nations, there are obvious disparities. Even differences in healthcare funding of different
counties in the United States create variations in the poverty rates (Jung Abstract). This depicts
the need to monetarily target healthcare systems when attempting to reduce poverty. It is
important to note that simply throwing money into a healthcare system will not magically
diminish the poverty rate.
^
Similar to intelligent Much like smart business planning, it is critical to identify what
avenues, if funded, will create a positive impact the most effective avenues must be identified
prior to funding the general healthcare system. One possible method is to provide funding
capital for more social workers, as well as enhance the quality of their training. This was one of
the many successful strategies used in a project in Vietnam that reduced the poverty by over
eight percent (Gien sec. 2, 7). Another approach is to contract primary healthcare out to nonstate providers; providers outside of the public sector, whether commercial or philanthropic.
This will aid in the sufficient provision of the majority of healthcare needs. Afghanistan has
effectively implemented this strategy to give priority access to the population groups greatest in
need, such as those living in poverty (Trani sec. 1). Evidently, meeting healthcare needs will
cause beneficial differences toward impoverished societies. It is critical to equip strategies to
reduce poverty with a comprehensive plan addressing healthcare needs. Adequate funding along

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replace the original sentence with a conclusory sentence
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repetition.
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with a method for accurately targeting low-income individuals, are necessary to detach the
shackles of poverty.
Poverty is a solvable problem in need of a specific multifaceted strategy. An effective
formula to alleviate poverty is the combination of the provision of free primary education,
quality healthcare, and most importantly, education in entrepreneurship. The increase in
entrepreneurship and the development of new businesses offer the surest route to economic
growth and development, including job creation (Bruton 4). Be an Entrepreneur | Build a
Business | Escape Poverty is one tool to promote entrepreneurship education, but it is crucial that
scholars, nonprofit organizations, and philanthropists alike, continue researching ways to educate
communities about business creation. Find ways to help them get back on their feet, take control
of their own destiny, and climb their way out of poverty through their business.

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Works Cited
Original Sources
Oghojafor, Akpoyomare, Olayemi, Olabode, Okonji, Sunday, and Olaywola. Entrepreneurship
as a Intervention Strategy to Poverty Alleviation in Developing Economy. International
Entrepreneurship Forum. University of Essex, Jan. 2011. Web. 30 Sept. 2015. PDF file.
Shirima, Ludovick. "Alleviating Poverty Through Innovation and Entrepreneurship." Web. 29
Sept. 2015. PDF file.

New Sources
Bruton, Garry D, David Ahlstrom, and Steven Si. "Entrepreneurship, Poverty, and Asia: Moving
Beyond Subsistence Entrepreneurship." Asia Pacific Journal of Management. 32.1
(2015): 1-22. Print.
Burnett, Nicholas. "Education for Allan Imperative for Reducing Poverty." Annals of the New
York Academy of Sciences. 1136.1 (2008): 269-275. Print.
Gien, Lan, Sharon Taylor, Ken Barter, Nguyen Tiep, Bui X. Mai, and Nguyen T. Lan.
"Education Article: Poverty Reduction by Improving Health and Social Services in
Vietnam." Nursing and Health Sciences. 9.4 (2007): 304-309. Print.
Huizinga, Daniel. "Fighting Poverty with Entrepreneurship." Consider Again. WordPress, 17
Jan. 2015. Web. 17 Nov. 2015.
Jacket. Summary. Nee, Victor, and Sonja Opper. Capitalism from Below: Markets and
Institutional Change in China. Cambridge, Mass: Harvard University Press, 2012. Print.
Jung, Suhyun, Seong-Hoon Cho, and Roland K. Roberts. "The Impact of Government Funding
of Poverty Reduction Programmes." Papers in Regional Science. 94.3 (2015). Print.

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Obisanya, J.F, C.A.O Akinbami, and A.O Fayomi. Summary. "Entrepreneurship Education and
Undergraduates' Attitude to Self-Employment : a Case Study of a Nigerian University."
Ife Psychologia : an International Journal. 18.2 (2010): 87-107. Print.
Si, Steven, Xuebao Yu, Aiqi Wu, Shouming Chen, Song Chen, and Yiyi Su. "Entrepreneurship
and Poverty Reduction: a Case Study of Yiwu, China." Asia Pacific Journal of
Management. 32.1 (2015): 119-143. Print.
Song, Yang. "Poverty Reduction in China: the Contribution of Popularizing Primary Education."
China & World Economy. 20.1 (2012): 105-122. Print.
Trani, JF, P Bakhshi, AA Noor, D Lopez, and A Mashkoor. "Poverty, Vulnerability, and
Provision of Healthcare in Afghanistan." Social Science & Medicine (1982). 70.11
(2010): 1745-55. Print.