Cultural Barriers Limit Entrepreneurship’s Impact in Poverty Reduction

Efforts by development agencies to foster entrepreneurship in impoverished communities often face cultural and institutional barriers. A study in northern Kenya found that collectivist norms, such as community sharing expectations, conflict with profit-driven business models. Entrepreneurs struggled to deny financial help to others, fearing social rejection or curses. While some abandoned business pursuits, others—especially those with religious convictions—persisted, believing faith protected them from harm. These findings suggest entrepreneurship programs must account for cultural identities and potential unintended consequences, such as widening inequality. Without cultural sensitivity, such interventions risk undermining traditional support networks and failing to achieve long-term economic progress. 

Source: The Conversation