This month we are exploring different motives a missional entrepreneur may have for pursuing business as mission as their strategy of choice. In this fourth post, we are exploring the power of business in lifting individuals and communities out of poverty.
Business is uniquely positioned as an essential and sustainable solution to ending poverty. Current global economic shifts and technological advances are creating a unique opportunity at this point to bring this goal in reach. Business by its nature is a relational activity, and a potentially transformational activity. Business not only creates jobs, it is where networks and relationships are the norm, creating networks and relationships that are essential for community restoration and transformation.
I believe the only long-term solution to world poverty is business. That is because business produces goods, and businesses produce jobs. And businesses continue producing goods year after year, and continue providing jobs and paying wages year after year. Therefore if we are ever going to see long-term solutions to world poverty, I believe it will come through starting and maintaining productive, profitable business. — Wayne Grudem, Business for the Glory of God
The role of businesses and job creation in ending poverty
Thriving businesses and job creation are vital for ending poverty. Kaushik Basu, the Chief Economist and Senior Vice President at World Bank states, “Jobs are the best insurance against poverty and vulnerability” (World Bank, 2013). John Mackey, CEO of Whole Foods, shares from his own business experience, “Business is the greatest creator of value in the world. It’s helped lift humanity out of poverty and into prosperity” (Fox News, 2013).
From the voices of the poor themselves (in a survey of over 60,000), jobs and businesses were cited as major paths out of poverty:
In a large set of qualitative studies in low-income countries, two of the main reasons that people gave for moving out of poverty were finding jobs and starting businesses. (Narayan, Pritchett, and Kapoor, 2009)
The development world has reached a similar conclusion, that aid alone is not the solution to poverty. Renowned books, from Dead Aid, to When Helping Hurts, and Toxic Charity warn us of the destructive tendency of “us to them” aid that wears away at the dignity and productive capacity of people and communities. Read more