Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/326777 
Year of Publication: 
2021
Series/Report no.: 
UNU-MERIT Working Papers No. 2021-018
Publisher: 
United Nations University (UNU), Maastricht Economic and Social Research Institute on Innovation and Technology (UNU-MERIT), Maastricht
Abstract: 
This paper investigates how entrepreneurship affects the likelihood of households graduating out of poverty. It analyses the effect of entrepreneurship in the outcomes of the households enrolled in the Colombian poverty reduction programme. A contribution to the Capability Approach is proposed with the inclusion of entrepreneurship as a 'functioning' linked to overcoming poverty. Entrepreneurship presents a great potential given its multidimensional nature. In its more basic conception, it is connected to income-generation, and in its more complex conception, it is related to the concept of agency. Using the Colombian UNIDOS programme (which is a programme focused on helping poor graduating out of poverty) as a case study, we employ a Probit Regression model with sample selection to model this mechanism. The results present a positive, statistically significant impact of entrepreneurial households in their probability of graduating out of poverty. The results confirmed that entrepreneurial households show a higher likelihood of escaping from poverty.
Subjects: 
Capability approach
poverty reduction
entrepreneurship
public policy
enterprise policy
JEL: 
I31
I32
L26
J48
L53
Creative Commons License: 
cc-by-nc-sa Logo
Document Type: 
Working Paper

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