Micro Enterprise Development and Income Sustainability for Poverty Reduction A Literature Investigation

Published in: International Journal of Business and Technopreneurship, Volume 7, No. 1, Feb 2017
Authors: Muklis Lateh, Mohammad Delwar Hussain, Mohd Suberi Ab. Halim
The document discusses the significant role of micro enterprises in reducing poverty, especially in emerging economies.
It identifies challenges faced by micro entrepreneurs including personal qualifications, business start-up, survival, and growth.

Micro enterprises play a critical role in poverty alleviation.
Entrepreneurship competencies positively affect income upliftment and poverty alleviation.
The study applies various statistical tools for analysis and contributes to discussions on micro enterprise development and poverty reduction.
Keywords: Micro Enterprise Development, Income Sustainability, Poverty Alleviation, Emergent Market Economy.

Poverty affects approximately 2.47 billion people globally, often measured by income of USD 2 or less per day.
It causes insufficient access to basic needs like food, clothing, shelter, and education.
The definition of poverty encompasses a lack of income, assets, competence, and social resources.
An increase in income does not necessarily equate to poverty alleviation.
Entrepreneurship is presented as a vital approach to combat poverty and stimulate economic growth.

The study uses a narrative literature review approach to assess micro enterprise development and its impact on poverty alleviation.
A broad range of academic and empirical literature sourced from various databases like Google Scholar and JSTOR.
The focus is on previous studies that articulate the relationship between micro enterprise initiatives and poverty elimination.

High unemployment rates contribute to persistent poverty in developing nations.
Poverty results from insufficient financial resources, education, and healthcare.
Types of Poverty:
- Absolute Poverty: Severe lack of basic human needs.
- Relative Poverty: Lack of income necessary to meet living standards.
- Social Exclusion: Denial of access to resources and normal societal relationships.

Defined as small businesses operated by impoverished individuals or groups, often with external support.
Typically involves a small number of participants; micro enterprises are crucial for improving living standards in poverty-stricken areas.
They require recognition of their role in connecting training with income-generating capabilities.

Micro enterprises enable individuals to create jobs and stimulate economic growth.
Entrepreneurship fosters income independence and creates social wealth via new industries and market opportunities.
Increased numbers of entrepreneurs correlate with reduced poverty rates.
Micro and small enterprises create significant employment and income, aiding in poverty alleviation.
Research supports that micro enterprise initiatives help raise incomes faster than control groups engaged in traditional employment.

Micro enterprise development is linked significantly to income generation and poverty alleviation.
Entrepreneurs require specific skills for sustaining businesses, including education, managerial prowess, and entrepreneurial competencies.
Female entrepreneurs face additional challenges compared to their male counterparts, notably in investment and technical skills.
Government policies play a critical role in supporting micro enterprise growth.
Recommendations include enhanced training programs and support for female entrepreneurs, addressing financial barriers faced by micro enterprises.

A comprehensive list of academic references cited in the study includes works from various researchers discussing the intersection of microenterprise, entrepreneurship, and poverty reduction.