Drivers of fragility in the ventures of poverty entrepreneurs

Abstract

This study examines whether and how the experience of poverty shapes the entrepreneurial journey. The research builds upon disadvantage theory to explore how liabilities resulting from the poverty experience can serve as obstacles to the creation of sustainable enterprises. An analysis of data from a sample of 202 entrepreneurs in poverty contexts in the USA demonstrates how liability of poorness (LOP) factors leads to the emergence of more fragile ventures. The findings further indicate that entrepreneurial alertness can moderate the effect of LOP on venture fragility. The study offers theoretical and practical suggestions for further understanding and fostering entrepreneurship as a viable solution to poverty.