Recently, international funding agencies and practitioners in the area of corporate social responsibility and small and medium enterprises have argued that microfinance institutions could promote the adoption of environmentally friendly business practices in microenterprises in developing countries. This article explores the potential and limitations of MFIs in promoting the spread of environmental risk management techniques and practices in microenterprises using a case study of an MFI-sponsored pilot program in this area in El Salvador. The author argues that caution should be (...) exercised about the role that MFIs can play in relation to inducing change to the environmentally harmful practices of micro-entrepreneurs. In fact, this study reveals that the MFI had some difficulties in building internal skills and reconciling its environmental and performance objectives, limiting its ability to assist microenterprises in the area of environmental management. Furthermore, the pilot program, as it was designed, did not sufficiently take into account the psychological and financial barriers that constrain micro-entrepreneurs’ capacity to engage in any meaningful environmental behavior change. Finally, factors such as the lack of an adequate legal framework and local infrastructure also countered the effort of the MFI and limited the potential of microenterprises for effectively engaging in environmental risk management practices. The article concludes by outlining the implications of this analysis for future research, policy, and practice in this area. (shrink)

Since the 1980s, microenterprise development programs have proliferated in the United States, where they are widely praised as strategies for economic development and poverty alleviation, especially for low-income women and welfare mothers. Based on research in a highly respected urban center for women, this article argues that microenterprise development is more detrimental and problematic than it is purported to be. Two reasons are isolated. First, gender constraints mean women tend to choose small-scale, undercapitalized, and barely profitable “pink-collar” businesses, (...) largely home-based operations based on work women are already doing as part of their gender-specific role. Second, microenterprise training programs reinforce this business segregation by discounting the sociocultural conditions women bring with them to business and instead emphasizing the personal growth of individuals. The result is that women are encouraged to maintain their economic vulnerability and social peripheralization rather than become part of the mainstream business world. (shrink)

An ethnographic case study of five rural farmwomen in Cedar County, Nebraska, was conducted to contribute to the understudied area of rural entrepreneurship and women entrepreneurs. This naturalistic inquiry into the lived experiences of five women provides an exceptional view of the founding of a new microenterprise, the St. James Marketplace, a farmer-to-customer market in an agricultural setting. The study considered factors identified from previous research on entrepreneurship in both urban and rural settings. It connected the formation of this (...) microenterprise to the history, culture, values, and economic situation that motivated the founders’ entrepreneurial behavior. A social embeddedness perspective was employed in the analysis. Negative forces from the macroenvironment, such as the closing of the local church parish and declining economic conditions for farming, influenced the creation of the venture. However, the most important motivation was to sustain community. This study satisfies a need for in-depth inquiry into rural entrepreneurship, rural communities, and rural farmwomen entrepreneurs. (shrink)

Socially responsible investors buy financial securities with two goals: to make a market-based return, and to make companies act in a more socially responsible way. Most research on socially responsible investment deals with investing in stocks traded on major exchanges. We add the case of loaning small amounts of funds to microentrepreneurs through a discussion of a particular case. The case is that of Calmeadow which, in conjunction with the Royal Bank of Canada, set up a microlending project in rural (...) Nova Scotia (Canada). Using Hirschman’s analysis of “exit” and “voice”, we show that while socially responsible investors may make market-based returns for their investments in stocks traded on major exchanges, they have no effect on corporate behaviour because their action consists of exit, and they are easily replaced by other investors. They attain their first goal but not their second. On the other hand, in the Calmeadow/Royal Bank of Canada case, we see that those who lend money to microenterprises can more easily use voice. The relative power difference between the lender and the microentrepreneur enables the lender to make the microentrepreneur act in a more socially responsible way, although only marginally. But because of the market imperfections existing in this case (the very high transactions costs associated with administering small loans), the lender concluded it could not attain a market rate of return. In this case, then, the lender attained its second goal but not its first. (shrink)

This article examines the contribution of a sectoral approach to understanding gender constraints on economic success in the informal sector, using the example of self-employed women in home-based garment production in Ahmedabad, India. The author assesses whether all the constraints laid out in the gender and microenterprise development literature affect women in this sector and, if not, suggests how theory on gender inequality in the microenterprise sector needs to be rethought to address variation by sector. Constraints are disaggregated (...) into women intensive, women exclusive, and sector specific. The results show that the women-exclusive constraints all hold within this sector, that there is variation among the women-intensive constraints in their differential gender effect, and that some sector-specific constraints tend to be more intense for women relative to men. The latter two results suggest that variation by economic activity must be accounted for in understanding the sources and extent of gender inequality in economic outcomes. (shrink)

In Industry 4.0 completely new production worlds are emerging, where robots are becoming a key element and where common human skill activities and thinking are commonly surpassed. The growing degree of automation and the interconnection of the digital and the real-world create an environment that requires a set of interdisciplinary skills. For the sustainability of enterprises in this environment, human creativity acquires an irreplaceable role. The aim is to compare the application of selected values in corporate culture, which creates a (...) space for increasing the creativity of employees from the perspective of different sizes of enterprises. The research sample consists of 1,716 companies of the Czech and Slovakia that participated in the questionnaire survey. The results of the independent T-test confirmed significant differences in the applied values between the countries being compared. Differences in terms of business size have been further explored through the ANOVA test and the Tukey HSD test. The results subsequently confirmed that the values: work meaningfulness, passion for work, and trust are applied more significantly to microenterprises in both the countries, creating an environment that supports creativity. (shrink)

Although disproportionate housework and care responsibilities ascribed to mothers and wives have been found to greatly impact women’s self-employment, less is known about how family-level labor structures may shape daughters’ entrepreneurship. Family business scholarship has shed partial light on this question by showing that household hierarchies and gender norms impede daughters’ recognition and inheritance within family firms in the United States. Drawing on interviews with 32 women microenterprise owners in Zacatecas, Mexico, this article builds on previous research by suggesting (...) that gendered mechanisms and labor structures may in fact position daughters to inherit businesses or business-related resources such as skills, financial capital, and property from their parents. Daughters acquire these assets by virtue of contributing to their parents’ enterprises as part of their childhood chores and maintaining a continued attachment to these businesses into adulthood. Daughters’ job prospects aside from inheritance were found to further shape their perceptions of business succession and inform their decision about whether to take over the family enterprise. Such acquisitions can be said to comprise instances of “gendered inheritance,” in which gendered institutions largely understood as disadvantaging women also may position them to attain valuable assets. (shrink)

The purpose of this research was to discover and describe the economic contribution one group of women entrepreneurs. The research participants were lowresource and laid-off women who had graduated from a Microenterprise Assistance Program . There was no differentiation among women by age, race, or ethnicity. The theoretical landscape that underpins this research includes economic geography and women entrepreneurs, and entrepreneurship and economic development. This research provided a geographic representation of the dispersion and volume of the self-reported business expenses (...) of women entrepreneurs located in one geographic area. In addition, this research developed and examined the viability of an assessment tool that maps the business payments made by entrepreneurs. (shrink)

Runaway climate change and persistent inequality are ravaging the world and humanity. Who can help lead us to a better future? Business. These massive dual challenges-and other profound shifts like pandemics, resource constraints, and shrinking biodiversity-threaten our very existence on the planet. Yet division and discord risk undermining our response, just when we need to come together. Global partnership and leadership are lacking, free trade and globalization are under attack, and populism continues to breed intolerance and disruption. At this critical (...) time in history, the imperative to reimagine our economies and companies could not be more urgent. Fortunately, many in the business community-from large corporations to microenterprises-are helping to solve our most profound challenges by deploying long-term, purpose-led business models that put people and planet first. And they are profiting on this new path with new tools, AI and data-driven transparency, and radical improvements in the economics of clean technologies. The key question has flipped from "Why would you do sustainability?" to "Why wouldn't you?" In this paradigm-shifting book, former Unilever CEO Paul Polman and sustainable-business guru Andrew Winston provide a model to help leaders build companies that contribute more to the world than they use or take-that is, net positive companies. They bypass the last gasps of denial to show how purpose and profits are inextricably linked and how collective action can deliver the scale of change and transformation the world needs. Net Positive outlines the principles and practices for surviving and thriving, based on the experience of one world-leading company, Unilever, and other groundbreaking global organizations. This essential book is for leaders, executives, managers, and professionals who want to succeed, but know that winning requires caring deeply about serving the world. Building a net positive company is the key, and this book shows the way. (shrink)

Se reconoce que la responsabilidad social empresarial (RSE) genera un impacto positivo en el desempeño de los negocios, principalmente en la gran empresa, sin embargo, su sostenibilidad en las PYMEs es debatida. Este artículo propone un modelo de RSE para PYMEs desarrollado a partir de una revisión bibliográfica y que luego fue examinado en un grupo de microempresas que practican RSE. A través del análisis narrativo se encontró que es factible realizar acciones de RSE en estos negocios, pero hay que (...) tomar en cuenta la familia, el trabajo colaborativo y el apoyo institucional como factores adicionales que influencian su sostenibilidad. (shrink)

In African countries such as Ghana, microentrepreneurs make formal economy goods and services available to base of the pyramid (BOP) consumers. Multinational enterprises (MNEs) co-opt BOP business models when they enter the BOP market. We conducted a case study of six MNEs and 36 microentrepreneurs in three key sectors. In two sectors (fast-moving consumer goods and telecommunications), reverse bridging enables MNEs to capture value from BOP business models, which has a negative impact on both the financial and social capital of (...) microentrepreneurs. In the third sector (finance), microentrepreneurs are buffered from the negative effects of co-optation through a process of integrating, which enhances their social capital but reduces their financial capital. Our research contributes to the BOP literature, first by demonstrating that financial and social capital are intertwined at the BOP level, and second by analyzing how the negative effects of co-optation can be cushioned by enhancing microentrepreneurs’ social capital. (shrink)