Small businesses play an important role in alleviating poverty.
The biggest reason for this is that small business forming part of the private sector creates the jobs needed by poorer communities for them to earn an income, pay for life’s necessities, and enjoy a good life.
Small businesses contribute to the reduction of poverty either via new start-ups or whenever an existing enterprise manages to grow and expand.
Work Vs Poverty
The availability of work – or rather the lack of that availability – is central to the problem of poverty. This is true all over the world.
Not only does employment allow people to earn the income needed to pay for food, housing, services, education, etc., but work also creates wealth for governments through taxation.
The problem with work, or at least good-quality work, is that it isn’t easily created. Decent work only ever comes from a balanced system of economic and political activity – which is in itself not all that common. Even so, putting in an honest day’s work is just about the way to escape poverty and all its challenges.
For this reason, the small business creating jobs plays a crucial role in upholding society.
Creating Work “Rights”
Poverty is complex in that it stems not only from a lack of physical means and resources, but also from feelings of powerlessness and vulnerability.
An interesting dynamic is that even feelings of powerlessness can be overcome, at least in part, with the help of respect for rights at work. As such, the role of the small business in alleviating poverty becomes even more defined.
Work rights include the right to conduct business activities in an environment that is free from harassment and corruption, the availability to the small business of a fair and functioning judicial system, and a general workspace that is free from administrative barriers.
Overseeing Productivity
The small business owner concerned with the success of their enterprise will typically have in place a system that keeps tabs on productivity levels.
To this end, poverty is kept at bay by a functioning and productive enterprise.
Productive enterprises have the means to provide a decent and adequate income to their workers. Adversely, low levels of productivity have a limiting effect on wages and overall viability.
By taking care of productivity levels, small businesses are helping to raise wages and create jobs.
Focused On Growth
Most small business and start-up owners want to grow their business to sustain viability and also to create better wealth for everybody involved.
But a growing business is also a business capable of employing more workers. As such, the small business that is focused on growth has an attitude that is geared towards the alleviation of poverty.
Growth means not only more employment but also secure work. The bigger and stronger the growth margin, the more capable the enterprise becomes in terms of offering long-term employment that is secure and rewarding. Just like playing bingo online for money is rewarding, so too is being able to offer employment to others.
This is essentially what every small business should be striving for.