Poverty, Inequality and Entrepreneurship
This chapter examines the literature explaining the substantial achievement. It argues that the spread of entrepreneurship, both in the economic and social spheres, has played an important role, complemented by government actions on the policy side. Although poverty is usually associated with low income, economists mostly base poverty measurements on consumption, recognizing that income is important because it enables people to consume goods and services. A national poverty headcount index of 30 percent indicates that 30 percent of the population in a country are poor based on that country’s definition of poverty line. Many countries have experienced ups and down in their attempts to reduce poverty. Hidden underneath the overall poverty figures are significant variations in poverty levels and trends between regions. Inequality has a bearing on poverty trends. During the 2000s, nationally, there was a modest decline in consumption inequality, as measured by the Gini index.