The Impact of Entrepreneurship on Poverty Reduction

Purpose: The main purpose of this research is to analyze how entrepreneurship and entrepreneurship development incentives can influence the reduction of poverty and help to improve the entrepreneurship environment in world countries.   Theoretical Framework: The study of the role of entrepreneurship in reducing poverty has become a major source of interest for scholars and policymakers around the world. A few studies have been conducted by scientists to study the impact of entrepreneurship on poverty reduction. Scholars in fields such as economics and management have tried to explore different approaches in this area and identify the relationships between entrepreneurship and poverty reduction.   Design/Methodology/Approach: In this study, we use a deductive approach, in which the hypotheses are tested for application across countries. The quantitative method has been used for this approach. The Panel Fixed Effects model has been employed to assess the impact of entrepreneurship and entrepreneurship development incentives on poverty.   Findings: Overall, the results showed that entrepreneurship in countries around the world has a positive and significant impact on poverty reduction. In addition, entrepreneurship development incentives increase the efficiency and capacity of entrepreneurial activities to reduce poverty.   Research, Practical & Social implications: This study not only helps to fill the gap in the literature on this topic, but also serves as a model of economic and social development for developed, developing and less developed countries.   Originality/value: This is a new study using changes in the HDI to measure poverty reduction, providing a broader and more comparative indicator that answers research questions. This research supports the claim that entrepreneurial activity has impact on poverty eradication and improving human development and people’s quality of life. Also, it demonstrates the strong relationship between entrepreneurship and poverty alleviation.