Mokhammad Nurruddin Zanky

Abstract

Poverty is a complex problem that is gaining worldwide attention. At the same time, researchers have acknowledged that entrepreneurship is one of the mechanisms to alleviate poverty. In the context of poverty, one of the primary issues discussed in entrepreneurship is resource scarcity. Existing research discussing entrepreneurship and poverty based on the remediation perspective explains that resource scarcity can be addressed through the involvement of external actors. However, this perspective has not covered the utilization of existing resources and still requires further exploration. Therefore, this study aims to investigate the resources Entrepreneurs in Poverty Conditions (EiPCs) possess and explores how they identify and exploit entrepreneurial opportunities. Structuration Theory and Bricolage Theory have been employed to explain the phenomenon explored in the present study. To achieve the research objectives, this study employs a qualitative approach using multiple-case study. Semi-structured interviews were conducted with three groups of EiPCs with sixteen informants. The research found that EiPCs utilize four resources in their entrepreneurial processes: human capital, social capital, financial capital, and local information. Necessity factors act as a driver for them to identify entrepreneurial opportunities. EiPCs identify existing entrepreneurial opportunities through three strategies: establishing direct communication, utilizing local information, and utilizing work experience. In addition, to exploit their perceived entrepreneurial opportunities, EiPCs mainly use two strategies: integrating available resources at hand and implementing the “Just Do It” strategy. This study’s original contribution to the poverty and entrepreneurship discussion is a start-up entrepreneurship model for those living in poverty. This study’s findings provide crucial information to the government by comprehensively outlining the resources to start a business, especially for those living in poverty, and a model of poverty alleviation that can be adapted to support poverty alleviation programs. Based on the findings of this thesis, this study recommends future research to study the role of entrepreneurship in poverty alleviation from reform and revolution perspectives.