Alleviating Poverty in the Philippines Through Entrepreneurship

Authors

Cynthia P. Cudia, De La Salle University, PhilippinesFollow
John Paolo R. Rivera, Asian Institute of Management, Philippines
Tereso S. Tullao Jr., De La Salle University, Philippines

JEL Classification System

C21, I32, L26

Abstract

Poverty is a global phenomenon characterized by the lack of access by households to their basic necessities— those earning US$1.25 daily and possessing very low capital, thus trapping them in a cycle of poverty as capital diminishes from one generation to another. In line with the Sustainable Development Goals, the Philippine government has set as one of its overarching goals to significantly reduce poverty incidence. To address poverty, several interventions have been put in place such as the conditional cash transfer, foreign aid, and entrepreneurship. Using a repeated cross-section model, we look into entrepreneurship as an intervention to push economic growth that allows for poverty mobility. Results have shown that entrepreneurship increases the probability of moving out of poverty and remaining above the poverty threshold. These have implications on government creating investment, insurance, and income stabilization schemes to address poverty.

Recommended Citation

Cudia, Cynthia P.; Rivera, John Paolo R.; and Tullao, Tereso S. Jr. (2019) "Alleviating Poverty in the Philippines Through Entrepreneurship," DLSU Business & Economics Review: Vol. 28: No. 3, Article 13.
DOI: https://doi.org/10.59588/2243-786X.1206
Available at: https://animorepository.dlsu.edu.ph/ber/vol28/iss3/13