Entrepreneurship by Poor - A study of entrepreneurship among the poor in less developed countries

Abstract: The importance of entrepreneurship in our society is the way it stimulate the markets through alertness to opportunities, and being creational of new opportunity-ideas. However, entrepreneurship is usually constrained by normative, regulative and cognitive mechanisms that enforces and forms the basis on which the entrepreneur operates. This leads us to the primary question of this thesis: to identify factors and conditions that prevents entrepreneurship from prospering within the less developed parts of the world. To do this, we have to understand the complexity behind entrepreneurship as the product of entrepreneurs. Further, we need an understanding for the constraints lain upon them as a result of growing up within Less Developed Countries (LDCs) . The purpose of this thesis is especially to identify poor entrepreneurs and the barriers they might face due to their standard of living. How lack of financial assets, educational possibilities within the field, regulated property rights, free market conditions, and institutional behavior, all can become heavy burdens for poor entrepreneurs, trying to create something out of nothing based on a new opportunity-idea. Finally, we shall present some policy recommendations for LDCs that can stimulate changes for the better, and by which entrepreneurship can be encourage and stimulated.