There are 7.5 billion people in the world today. Within the next 50 years, the population will reach over 10 billion. As the population rises exponentially, so too does poverty, unemployment, and economic stagnation. Large-scale job creation requires a great deal of capital and power, but even with these resources many efforts to combat job scarcity fail to put a dent in the problem.
However, studies show that entrepreneurship can significantly alleviate poverty and unemployment.
Not only this, but it appears that increased entrepreneurship tends to burgeon out of negative conditions when the proper opportunities are made available. Entrepreneurship, already so well regarded in today’s society, may be the answer to reducing some of the world’s widespread poverty. Access to entrepreneurship education may offer a solution to unemployment, hunger, homelessness, and crime that often arises in poverty stricken areas.
The issue of job scarcity around the world is compounded by the continuous and rapid rise in population. Job availability simply cannot match the speed at which the world’s population is growing, in any capacity.
However, necessity is indeed the mother of invention. Humans will do what they need to do in order to survive and to put food on their table. If the unemployed are given entrepreneurship education, they have the capability to create their own job and source of income. Not only this, but they have the opportunity to create jobs for others if their business finds success and expands. The benefits of entrepreneurship in a community must not be underestimated. While it is true that only a small percentage of aspiring entrepreneurs find success, entrepreneurship education can give people the knowledge and skill set they need to be more employable to others. By involving both the public and private sector, on top of implementing entrepreneurship education, leadership skills, active responsibility, communities living will be able to build a strong entrepreneurial ecosystem in which to create flourishing socio-economic climate.
With job creation comes a reduction in the crime that arises out of poverty. If people who live in poverty are educated in entrepreneurship and are given the opportunity to attain skilled employment, the financial incentive of committing crimes is reduced. Given the proper training and circumstances for financial success, most people would choose to make their living in an honest, consistent way. Crime looks far less attractive when a decent paycheck with steady income is an option. In addition, once a person has some education or a job, the opportunity cost of crime is increased. There is much more to lose when you have worked hard for your money and skill set. People who are contributing, and reaping the rewards of, their local economy are less inclined to throw away what they have for risky and illegal criminal activity.
Finally, entrepreneurship spurs economic growth. Entrepreneurship encourages individual participation in the labor market. An increased division of labor means increased productivity and output. As a result, the economy is stimulated both locally and globally. Economic growth in areas that are riddled with crime, poverty, and unemployment are positively impacted by economic growth. The best way to fight poverty is not to bring in temporary outside forces to complete a few humanitarian projects. The most effective and lasting solution is to educate the locals so that they themselves can exert positive changes on their society. Local entrepreneurs know where the gaps in the local market are better than any outsider and have a heightened sense of personal responsibility to their community. Economic development from within creates a solid foundation upon which to build a thriving economic ecosystem.
Humanitarians and philanthropists are always looking for ways to combat the growing poverty problem around the world. It seems that entrepreneurship may be one viable answer. In order to reduce job scarcity and fight poverty-born crime, poverty must be combated from within and it is imperative that local citizens are given the tools they need to shift the trajectory of their own economy. The intersection of the public, private, and academic sectors within struggling or developing areas will open the doors to economic growth. A successful entrepreneurship ecosystem is the key to reducing hunger, homelessness, and crime resulting from poverty. When citizens are given the tools they need to take an active role in designing their own future, the positive results are innumerable.