Entrepreneurs’ motivation may determine job creation prospects

Filed under International

It pays to know the difference between “necessity” entrepreneurs and “opportunity” entrepreneurs, Eva Pereira suggests in a Forbes blog that explores entrepreneur-led economic development in Haiti, where the unemployment rate has been 75 percent.

Pereira cites data from the Global Entrepreneurship Monitor, a nonprofit research organization, suggesting entrepreneurs who sell their wares on the streets of Haiti out of necessity tend to abandon their businesses when they find employment. But those who start businesses because they see a market opportunity tend to create jobs and long-term value for investors, Pereira said.

By supporting small and medium enterprises that are likely to create jobs, micro financiers can make a difference, said Anne Hastings, chief executive of Fonkoze, a microfinance institution, who was cited in the blog. Fonkoze now offers $10,000 loans to small businesses in Haiti, the blog reported.

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