Journal of Small Business Management

ISSN: 0047-2778 (Print) 1540-627X (Online) Journal homepage: https://www.tandfonline.com/loi/ujbm20

Entrepreneurship Education in a Poverty Context:

An Empowerment Perspective

Susana C. Santos, Xaver Neumeyer & Michael H. Morris

To cite this article: Susana C. Santos, Xaver Neumeyer & Michael H. Morris (2019)
Entrepreneurship Education in a Poverty Context: An Empowerment Perspective, Journal of Small
Business Management, 57:sup1, 6-32, DOI: 10.1111/jsbm.12485

To link to this article: https://doi.org/10.1111/jsbm.12485

Published online: 04 Jan 2020.

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Journal of Small Business Management 2019 57(S1), pp. 6–32
https://doi.org/10.1111/jsbm.12485

Entrepreneurship Education in a Poverty Context:

An Empowerment Perspective
by Susana C. Santos, Xaver Neumeyer, and Michael H. Morris

Empowerment is an important but understudied phenomenon in entrepreneurship education.

We integrate literatures on empowerment theory and experiential learning to propose a conceptual
model of empowerment-based entrepreneurship education. The concept of entrepreneurial
empowerment is introduced as a cognitive state characterized by meaning, competence, self-
determination, and impact toward entrepreneurial activities. The model proposes that
empowerment has a mediating role in the relationship between experiential learning approaches
in a poverty context and the acquisition of learning outcomes. The model is illustrated using an
entrepreneurship and adversity program that supports local low-income individuals in starting
and growing their ventures.

All people are entrepreneurs, but many don’t (Schindehutte and Morris 2016). Further, expos-
have the opportunity to find that out. ing students to service-learning (Kenworthy-
Muhammad Yunus U’ren and Peterson 2005) in real-world (and
sometimes adverse) contexts in their respec-
tive communities gives them an opportunity to
apply knowledge content, principles, and tools,
Introduction and particularly important here, to be empow-
Entrepreneurship education has progressed ered. One such context is poverty. Neal (2017)
from teaching students the mechanics of start- recently called attention to the importance of
ing a business to helping them recognize op- addressing poverty in management curricula,
portunities, manage adversity, and develop an noting that “so many people continue to live in
entrepreneurial mindset (Kuratko and Morris desperate conditions—and because they inter-
2018). Consequently, pedagogical approaches act with and influence business environments
have moved from a focus on “feeding” students around the world—it is pedagogically important
with core principles and concepts to the adop- and morally right to review what we currently
tion of blended learning approaches that com- teach, and do not teach, in business schools”
bine content with a mix of practice elements (p. 55). Accordingly, immersing students in
(consulting projects, case studies, interviews poverty contexts can lead to the acquisition of
of entrepreneur, incubators, mentors, entre- unique learning outcomes and cognitive states,
preneurial audits, business plan competitions) particularly empowerment (Neal 2017).

Susana C. Santos is an assistant professor of Entrepreneurship in the Department of Management and

Entrepreneurship at Rowan University, and member of the Business Research Unit (BRU-IUL), Instituto
Universitário de Lisboa (ISCTE-IUL), Lisboa, Portugal.
Xaver Neumeyer is an assistant professor of Entrepreneurship, University of North Carolina at Wilmington.
Michael H. Morris is the George and Lisa Etheridge Professor of Entrepreneurship, Warrington College of
Business Administration, University of Florida.
Address correspondence to: Susana C. Santos, Rowan University, 201 Mullica Hill Road, Glassboro, New Jersey
08028. E-mail: [email protected].

6 JOURNAL OF SMALL BUSINESS MANAGEMENT

 Beyond its relevance for university students, for new solutions regardless of the context.
entrepreneurship education is also germane Despite the fact that entrepreneurship educa-
for others aspiring to start and grow their own tion is ultimately about empowering individ-
businesses. As individuals living in poverty ex- uals to act entrepreneurially, and even as the
perience high levels of unemployment (approx- theory of empowerment has been established
imately 37%) (Gould, Davis, and Kimball 2015), in the literature for over 30 years (Conger and
many of the key programs that address poverty Kanungo 1988), the theoretical foundations of
reduction focus on creating more jobs for the empowerment have not yet been firmly estab-
poor, better equipping them for these jobs, and lished in entrepreneurship education. We pro-
incentivizing them to pursue jobs (e.g., Abner pose a framework for empowerment-based
et al. 2015). Yet, missing from most of these entrepreneurship education (EEE) that ad-
discussions is the potential for poor people to dresses this gap. Our interest concerns how
create their own jobs. Entrepreneurship educa- empowerment facilitates the acquisition of
tion can have a determinant role in providing learning outcomes. Theoretically, EEE draws
fundamental knowledge, skills, and attitudes to from empowerment theory (Spreitzer 1995,
low-income individuals who want to start and 1996, 2008) and experiential learning princi-
grow their own businesses. As a result, entre- ples (Kolb 1984, 2014) to produce a pedagog-
preneurship is a path to empower individuals ical approach for fostering empowerment in
living in poverty to escape adverse conditions a poverty context. We put forward a set of
and contribute to community improvement, job theoretical propositions, asserting the effect
creation, self-employment, reduction of crime, of learning types on entrepreneurial empow-
family stability, and other social returns (e.g., erment, and on the subsequent acquisition of
Asikhia 2010; Garba 2010), particularly during key learning outcomes. EEE targets university
economic crises (Santos et al. 2017). students as well as low-income individuals at-
In contrast to the existing work on poverty and tempting to launch ventures.
entrepreneurship in developing countries (i.e., Our conceptual framework is illustrated
Bruton, Ketchen, and Ireland 2013; McMullen using the Entrepreneurship and Adversity
2011; Webb et al. 2010), where poverty condi- Program (EAP), an initiative that assists local
tions are more ubiquitous, our work focuses on low-income individuals through grassroots
the (increasing) gap between different socioeco- entrepreneurship interventions to start or
nomic contexts in developed economies. The grow their own business. EAP is a multistage,
limited evidence suggests that entrepreneurship multifaceted replicable program driven by a
can play a meaningful role in reducing poverty major southeastern university in the United
levels (Slivinski 2015). And despite the signifi- States, built around a model of community
cant obstacles faced, the poor are able to launch change and service learning. More funda-
an impressive number of ventures (Edmiston mentally, EAP provides a rich basis for gen-
2008; Fairlie 2010). Most are simple lifestyle erating a theory-building process for EEE
and survival ventures (Morris, Neumeyer et al. (Eisenhardt and Graebner 2007) and action
2018). Yet they provide a living, and potentially research (Whitehead and McNiff 2006) re-
a very good living, for those who launch these garding the dynamic interplay between
ventures. The challenge is to make entrepre- low-income entrepreneurs and university stu-
neurship a more viable option for the poor, and dents (Lewin 1946).
demonstrate how entrepreneurship education
can help those in adverse circumstances to suc- Empowerment Theory
cessfully pursue the entrepreneurial path. Empowerment theory has been examined
A central, but understudied component of in different academic disciplines and con-
entrepreneurship education is the empower- texts including organizational theory (Conger
ment construct. Empowerment is a motiva- and Kanungo 1988), community psychology
tional concept (Conger and Kanungo 1988), (Fawcett et al. 1995; Perkins and Zimmerman
conceived as a process where individuals 1995), and education (Israel et al. 1994), among
overcome a sense of powerlessness, lack of others. In organizational theory, researchers
resources, and limited autonomy to gain con- have focused on how hierarchical organi-
trol over their lives (Perkins and Zimmerman zations can transfer power and autonomy to
1995). Empowerment is about knowing and employees to empower them to identify prob-
acting to change the status quo, seeking lems and opportunities (Conger and Kanungo

SANTOS, NEUMEYER, AND MORRIS 7

1988). Empowerment as a relational construct women and certain members of minority
refers to hierarchical delegation, where the and ethnic groups sense lower levels of em-
“leader or manager shares his or her power powerment (Koberg et al. 1999), although
with the subordinates” (Conger and Kanungo a recent meta-analysis found no indications
1988, p. 473). In community psychology and of a significant relationship between gen-
the social sciences, empowerment processes der and empowerment (Seibert, Wang, and
enhance the individuals’ ability to attain au- Courtright 2011). Self-examination attributes
thority over their lives (Page and Czuba 1999), such as locus of control, self-esteem, gener-
and increases autonomy, access, and control alized self-efficacy, and emotional stability
over government and community resources have also been found to be positively associ-
through collective action (Fawcett et al. 1995; ated with empowerment (Seibert, Wang, and
Perkins and Zimmerman 1995). In education, Courtright 2011). Zhang and Bartol (2010)
Freire (1973) proposed that the disadvantaged demonstrate how empowering leadership
can become empowered via a three-step pro- works through psychological empowerment
cess that begins with acquiring knowledge to ultimately influence creativity. Contextual
about social disparity (conscientizing), then factors positively influencing empowerment
enlarging others’ confidence about achieving include specific managerial practices, such as
social parity (inspiring), and finally enabling open information sharing, decentralization,
them (liberation). Here, education is a process participative decision-making, and extensive
that can shape empowering experiences for training (Seibert, Wang, and Courtright 2011).
students (Kohn 1991). Courts (1991) refers to Having strong sociopolitical support, includ-
students who begin to “gain a sense of their ing access to more or better resources, peer
own power as learners and meaning makers” support, and a positive work group climate,
(p. 148). Examples of empowerment education also has a positive impact on empowerment
programs include students with reading deficits (Liden, Wayne, and Sparrowe 2000). Other
empowered through language (Courts 1991), relevant contextual antecedents include work
immigrant minorities empowered through lan- design characteristics, such as role clarity,
guage and culture programs (Bullivant 1995), task feedback, task significance, and auton-
and women empowered through social ac- omy (Seibert, Wang, and Courtright 2011).
tion and health promotion movements (Kar For its part, empowerment has a positive in-
and Pascual 1999). Other educational initia- fluence on attitudinal variables such as job sat-
tives based on the principles of empowerment isfaction and organizational commitment (e.g.,
have increased job knowledge in technology Zhou et al. 2012) and a negative influence on
(e.g., Leach, Wall, and Jackson 2003), nursing turnover intentions and stress (Seibert, Wang,
(Ingersoll-Dayton et al. 2003), and teaching and Courtright 2011). Higher levels of psycho-
(Wang, Zhang, and Jackson 2013). These exam- logical empowerment also decrease the desire
ples suggest that actions, activities, educational to exit an organization (Harris et al. 2009). As
programs, or structures may be empowering, far as behavioral outcomes, empowerment is
and that the outcome of such processes results relevant to job and innovative performance
in a level of being empowered (Swift and Levin (Spreitzer 1995, 2008; Maynard, Gilson, and
1987; Zimmerman 1995). Mathieu 2012) and has been shown to influ-
ence managerial and organizational capabilities
Antecedents and Outcomes of (Spreitzer 1995).
Empowerment Despite the limited scholarly work in this
Research in the organizational context has area, a case can be made for a close relation-
demonstrated that empowerment is influ- ship between empowerment and entrepre-
enced by several individual characteristics. neurship (see Henao-Zapata and Peiró 2018;
Human capital variables, such as education, Morris, Pitt, and Berthon 1996). Empowerment
tenure, and age, have a beneficial linkage has proven to be relevant in contexts that re-
with empowerment (Seibert, Wang, and quire initiative and innovation (Lee and Koh
Courtright 2011), where better educated 2001; Sun et al. 2012), in risky and uncer-
people and those with more job experience tain situations (Spreitzer 1996, 2008), in re-
have a higher probability of experiencing sourcefulness conditions (Spreitzer 1995), in
empowerment (Rudolph and Peluchette poverty contexts (Alsop and Heinsohn 2005;
1993). Alternatively, evidence suggests that Narayan-Parker 2002), where perseverance

8 JOURNAL OF SMALL BUSINESS MANAGEMENT

and resilience are necessary (Deci and Ryan makes those meanings self-defining” (Murnieks,
1987), and in contexts that require proactiv- Mosakowski, and Cardon 2014, p. 1589).
ity (Grant and Ashford 2008; Spreitzer 2008). Therefore, founders, individuals, and founding
These are typically the characteristics of en- teams develop multiple meaningful identities
trepreneurship, suggesting the relevance of within their role as entrepreneurs (Fauchart and
empowerment when attempting to create and Gruber 2011; Powell and Baker 2017).
grow a venture. An increasing sense of entrepreneurial
competence, reflected in self-efficacy, is asso-
ciated with the successful performance of di-
Empowerment and verse entrepreneurial roles and tasks (Zhao,
Entrepreneurship Seibert, and Hills 2005) and firm performance
Psychological empowerment at the in- (Hmieleski and Baron 2008). Self-efficacy plays
dividual level (Zimmerman 1990, 1995; a key role in moving from intention to imple-
Zimmerman and Rappaport 1988) is concep- mentation (Zhao, Seibert, and Hills 2005) and
tualized as an experienced psychological state several studies highlight a strong relationship
or process expressed in four cognitive states: between entrepreneurial self-efficacy and per-
meaningfulness, competence, self-determina- formance (e.g., Baum and Locke 2004).
tion, and impact (Spreitzer 1995). Thomas and Self-determination within empowerment
Velthouse (1990) defined the meaningfulness theory refers to an individual’s sense of au-
dimension as “the value of a work goal or tonomy in decision-making and pursuit of a
purpose, judged in relation to an individual’s course of action (Spreitzer 1996). It provides an
own ideals or standards” (Spreitzer 1995, p. intrinsic motivation to act. Within motivation
1443). Competence can also be referred to as theories, self-determination theory argues that
self-efficacy, or an individual’s belief in his or individuals act in healthy and socially effective
her capability to perform activities with skill ways, satisfying their psychological needs for
(Bandura 1982). Self-determination is an indi- competence, relatedness, and autonomy (see
vidual’s sense of autonomy in decision-making Deci and Ryan 1987; Ryan and Deci 2002; Van
and activities (Ryan and Deci 2002). Impact den Broeck et al. 2016 for reviews). In entre-
represents the perceived degree that an indi- preneurship, self-determination is a relevant
vidual views his/her own behaviors and ac- component of the motivational synergy that
tions as making a difference in work outcomes promotes entrepreneurial creativity (Amabile
(Spreitzer 1996). Progress across these four 1996), explains career decisions of entrepre-
dimensions suggests one is more empowered neurs such as retirement (Morris, Soleimanof,
(Spreitzer 1995). and White 2018) or exit (Morris et al. 2018),
These four dimensions are also relevant in and is relevant for understanding entrepre-
entrepreneurship, but have not been theoreti- neurs’ coping strategies when dealing with the
cally integrated under a conceptual umbrella stigma of venture failure (Shepherd and Haynie
of empowerment. Entrepreneurial activities are 2011).
powered by meaning, and consistently setting Impact refers to the degree that an indi-
goals to develop one’s own standards and ide- vidual perceives his/her own behaviors and
als. The meaningfulness of work, or work that actions as influencing outcomes (Spreitzer
is personally enriching, is a core psychological 1996). Entrepreneurship is inherently an ac-
state that results from the task environment, tivity with high potential impact, where in-
including self-employment (Hackman and dividuals recombine existing or underutilized
Oldham 1976; Schjoedt 2009). Dempsey and knowledge, business concepts, or ideas to
Sanders (2010) highlight the meaningfulness of create wealth and growth (Acs 2008). While
work in nonprofit entrepreneurship. Meaning profit and wealth creation receive much of
is also framed as a central motivation for iden- the focus, entrepreneurs create jobs, intel-
tity construction (Pratt 2000), answering the lectual property, solutions to problems, and
question “why am I here?” (Pratt and Ashforth community development. There can be con-
2003). Entrepreneurial activities are imbued in siderable social impact (Austin, Stevenson,
meaning as they express an individual’s iden- and Wei-Skillern 2006) and social returns
tity (Cardon et al. 2009), which “forms when an (Zahra et al. 2009). At the individual level,
individual internalizes the external meanings entrepreneurship can also be a source of
associated with the entrepreneurial role and self-fulfillment and actualization. Accordingly,

SANTOS, NEUMEYER, AND MORRIS 9

it can be argued that entrepreneurship should psychological distance (hypothetical and
be grounded in the logic of empowerment temporal) in pursuing their goals, enhancing
(rather than control), by lessening dependen- their sense of empowerment.
cies on external stakeholders and increas-
ing one’s autonomy to make decisions about EEE: The Poverty Context
what entrepreneurial opportunities to pursue Experiencing poverty directly influences
and what outcomes to create (Santos 2012). how individuals make decisions and deal with
These arguments acknowledge the relevance obstacles and the alternatives available to them.
of the empowerment construct in entrepre- It creates a sense of powerlessness. Despite the
neurship. In summary then, we conceptualize constraints of the poverty context, impover-
entrepreneurial empowerment as a cognitive ished individuals identify entrepreneurial op-
state characterized by meaning, competence, portunities, gather scarce resources, and create
self-determination, and impact as they relate to new businesses (Banerjee and Duflo 2007; Si
entrepreneurial activities. et al. 2015).
The poor face unique conditions that can im-
Entrepreneurial Empowerment and pact entrepreneurial behavior (Morris, Santos,
Construal Level Theory and Neumeyer 2018b). These include (a) a se-
Construal level theory addresses the link vere lack of resources and ongoing financial
between psychological distance and the ex- needs that can create a very short-term orien-
tent to which individuals think abstractly tation (Wilson 1996b); (b) inadequate housing
(high-level) or concretely (low-level) about conditions and a poor diet that when coupled
objects or events in their life. The percep- with unaffordable medical care can result in
tion of these events or objects can vary across poor health and chronic medical conditions
several types of psychological distance: (1) (e.g., Morland et al. 2002); (c) lower quality
temporal, (2) spatial, (3) social, and (4) hypo- schooling, limited education, and poor literacy,
thetical distance (Liberman and Trope 1998; which compromises the human capital of the
Trope and Liberman 2010). In entrepreneur- poor; (d) lack of transportation, including an
ship, construals have been mainly discussed inability to afford the expenses that go with
in the context of entrepreneurial intent and owning a vehicle and public transportation
behavior. Hallam et al. (2016) examined networks that underserve poorer neighbor-
how temporal construal theory impacts en- hoods; (e) segregation from the rest of soci-
trepreneurial intentions and found that an ety (Wilson 2012), coupled with hidden rules,
individual’s anticipation of a particular entre- norms, and values that enable the poor to sur-
preneurial event influences their intentions. vive, but which differ from those of the middle
Although the connection between construals or wealthy classes (Payne, DeVol, and Smith
and (entrepreneurial) empowerment has not 2009); and (f) lack of entrepreneurial role
been investigated, many potential linkages models, mentors, and exposure to operations
appear to exist. As with entrepreneurial in- of small enterprises (Fairlie and Robb 2007).
tention, empowerment has a strong temporal For the most part, individuals in poverty are cut
dimension. Empowerment can be construed off from the mainstream (entrepreneurial) eco-
as a distant-future situation using abstract systems (Neumeyer, Santos, and Morris 2018).
and central features. For example, low-in- Table 1 provides a summary of these and other
come individuals limited by their economic aspects of poverty and their implications for
constraints might picture themselves as entre- venture creation.
preneurs making their own decisions, creat- Entrepreneurship education can play a
ing a sense of empowerment. Empowerment central role in helping the poor overcome
can also emerge as a near-future situation, these obstacles. Empowerment represents an
placing more emphasis on secondary goals important but understudied aspect of entre-
and specific skills required to achieve the preneurship education in a poverty context,
goals. As another example, education and for both university students and low-income
training programs can help individuals de- individuals. As Lincoln et al. (2002, p. 276)
velop specific entrepreneurial skills such note “empowerment is inextricably linked to
as opportunity recognition and assessment education.” Shellman (2014, p. 19) explains
or risk management, thereby reducing the that “the ultimate purpose of any form of

10 JOURNAL OF SMALL BUSINESS MANAGEMENT

 Table 1
Poverty Conditions and Their Implications for Entrepreneurship
Poverty Condition Implications for Entrepreneurship
Lack of financial resources and an No money to start venture; entrepreneur limited to more
inability to save labor-intensive ventures with limited growth prospects;
reduced capacity to expand or grow; customers often also
lack buying power
Lower-quality schooling, limited Narrow skills set can limit venture types pursued and
education, lack of skills training constrain the opportunity horizon
Poor literacy (including reading Difficulties in pricing, managing cash flow, understanding
and writing but also financial and contracts, marketing, preparing tenders, bookkeeping,
technical literacy) complying with regulations, filing taxes, using
technology, using social media and online tools, etc.
Preoccupation with immediate Lack of planning for the future, reduced cognitive
needs and crises resources to focus on the business, divided attention with
individual and family problems
Lack of time from working Need to start the business while keeping other part-time
multiple jobs, childcare, etc. jobs, and slowly making transition to full-time business
owner may compromise on some key tasks requiring
attention
Physical exhaustion from working Reduced cognitive bandwidth; lack of energy to dedicate
multiple jobs, childcare, etc. to the business
Health problems from poor diet, Ill-health limits time and depth or quality of attention the
unaffordable health care entrepreneur can give the business
Lack of transportation Reduced mobility to meet potential and current clients,
suppliers and others, attend networking events, and get
immersed in local ecosystem
Prevalence of crime Higher vulnerability to robberies and theft, defaulting
clients; subject to distrust by suppliers, bankers, and
partners
Social pressures from gangs and Tendency to engage in the informal economy, pursue
other negative influences illicit strategies
Segregation and limited social Limited access to key people, critical resources,
network diversified markets; limited opportunity horizon
Lack of understanding of hidden Limited access and ability to successfully interact with
rules of other income classes customers, suppliers, investors, regulators, distributors,
gatekeepers, and others who come from different
economic classes and backgrounds
Lack of entrepreneurial role Lack of inspiration to guide one’s efforts; lack of
models appreciation for values and behaviors required to succeed
in small business; possible lowering of self-efficacy; lower
social capital;
Lack of entrepreneurial mentors, Limited guidance and direction on business decisions; no
support network reinforcement and encouragement
Lack of exposure to operations of Reduced knowledge of pricing, marketing, bookkeeping,
small businesses accounting, operations, inventory, etc.; unrealistically low
expectations regarding time and cost requirements
Source: Morris, Santos, and Neumeyer 2018b.

SANTOS, NEUMEYER, AND MORRIS 11

education is to empower learners to think, to and other experiential approaches (Neck and
feel, and to act.” Students can be empowered Greene 2011). Students engage in “deliberate
through their educational activities helping practice,” immersed in real-world situations
them develop skills, confidence, and drive to as they achieve meaningful performances
achieve academic success (Cummins 1986). that help attain a state of mind (Neck, Greene,
Empowerment through education is espe- and Brush 2014).
cially germane in contexts that foster a sense Experiential learning contexts and activi-
of powerlessness—ones where people are ties can assume different forms that address
devoid of strength, resources, and/or the au- four learning styles defined by Kolb (1984,
thority and capacity to act. Poverty represents 2014): (i) concrete experiences (feeling), (ii)
a case in point. reflective observations (reflecting), (iii) ab-
For a student, the successful creation of a stract conceptualizations (thinking); and
business can seem like an overwhelming un- (iv) active experimentations (acting/doing).
dertaking. They learn it is an undertaking that These learning styles are influenced by the
not only requires an original business idea, characteristics of the learning context and ac-
attractive market opportunity, and significant tivities (Corbett 2005, 2007). Concrete experi-
resource requirements and skill sets, but is ences produce observations and reflections,
also subject to uncertainties and ambiguities, a change in individuals’ skills and attitudes,
unforeseen developments, lack of control, and are focused on the feelings involved in
and relatively high rates of failure. These re- the situation. Concrete experiences can be
alities can lead them to question their ability developed by role-play exercises, simulations,
to engage in entrepreneurship. Further, as the structured applications, consulting projects,
student comes to understand (and become im- student incubators, internships, and pitches
mersed in) the poverty context, and particularly to investors, among others. Reflective obser-
the complex interplay of the factors outlined in vations produce a change in appreciation
column 1 of Table 1, venture creation seems and are promoted by videos/movies, diaries,
even more daunting. How does a person with demonstrations, case examples, entrepreneur
no money, no entrepreneurial experience, lack guest lectures, problem exams, or interviews
of managerial skills, low functional, economic of entrepreneurs, among others. Abstract con-
and technological literacy, and other shortcom- ceptualizations produce mostly a change in
ings have any chance of starting and growing knowledge and are developed by theory lec-
a venture? tures, required readings, case study discus-
Where educational efforts center on both sions, theory papers, or content exams, among
university students and low-income entrepre- others. Active experimentation produces a
neurs, a dyadic model of learning becomes change in understanding and is developed
possible, where both are empowered through by getting students to participate in business
their mutual interactions during the educa- plan teams, marketing inventions, field ex-
tional experience. We therefore propose that periments, prototype development labs, or
empowerment can serve as a key mechanism entrepreneurial audits, among others (Kolb
in entrepreneurship education, mediating the 1984, 2014; Schindehutte and Morris 2016).
relationship between experiential learning ap- Together, these different experiences gener-
proaches and learning outcomes. ate learning through “the process whereby
knowledge is created through the transforma-
Experiential Learning tion of experience” (Kolb 1984, 2014, p. 38).
Individuals play an active role in this learn-
and Entrepreneurial ing process, with the conversion of experi-
Empowerment ences into knowledge being dependent on
The significant growth in entrepreneur- their active engagement. Doing, feeling, liv-
ship education within universities has been ing, and experiencing aspects related to entre-
coupled with a strong focus on experien- preneurship in powerlessness contexts such
tial learning (Morris, Kuratko, and Cornwall as poverty are critical to igniting the empow-
2013). There is an emerging consensus that erment of each individual. Knowledge and
entrepreneurship is best learned by applying cognitive states are constructed as a result of
content through examples, cases, hands-on a recursive process involving the four learn-
exercises, simulations, consulting projects, ing styles. Specifically, concrete experiences

12 JOURNAL OF SMALL BUSINESS MANAGEMENT

produce observations and reflections, which Yet, there is likely to be a differential effect
are assimilated and refined into abstract con- of each learning style and pedagogical activ-
cepts from which action implications are then ity on entrepreneurial empowerment for stu-
drawn, and these are actively tested and guide dents and low-income entrepreneurs, as well
the creation of new experiences (Kolb and as on the learning outcomes of both learners.
Kolb 2005). As a result of this immersion in The degree of concreteness and the nature of
real-world experiences in a poverty context, participation and involvement of students and
the actual learning process is more effective low-income entrepreneurs in each type of ex-
in modifying and shaping knowledge struc- periential learning activity are likely to have
tures (e.g., Corbett 2007; Fayolle and Gailly differential impacts on the four dimensions of
2015; Neck and Greene 2011), and so is more entrepreneurial empowerment. We expand on
impactful, meaningful, and empowering. this idea in the sections to come, discussing
Experiential learning pedagogies empower the role of experiential learning activities in
learners (students and low-income entrepre- EEE for both types of learners.
neurs), as they “gain control over their learning
and hence their lives, and take responsi- Concrete Experience and
bility for themselves” (Griffin 1992, p. 32). Entrepreneurial Empowerment
Experiential learning thus serves as an effec- Pedagogical approaches focusing on con-
tive way of facilitating the “thinking-doing” crete experience take the student to action,
link in entrepreneurship education, contribut- doing and living the experience (Kolb 1984,
ing to the development of an expert mindset 2014). An example is service learning, defined
(Krueger 2007) and promoting entrepreneur- as “a type of action learning where course con-
ial empowerment. In essence, “experiential tent is deliberately integrated with community
education is, in several ways, aptly designed service” (Smith and Woodworth 2012, p. 392).
to empower (…) it is the most effective means Pedagogical approaches that focus on concrete
through which learners may develop a sense experience immerse learners in real-world ex-
of empowerment” (Shellman 2014, p. 19), par- periences, such as having students work with
ticularly in powerlessness contexts. the poor or disadvantaged (Morris et al. 2011),
The student is empowered by engaging and matching low-income entrepreneurs with
in a set of pedagogical approaches produc- mentors to get advice on how to start and grow
ing deliverables that enable the low-income a business. Therefore, embedding concrete ex-
entrepreneur to make real progress through periences in an education/training program
steps in the entrepreneurial process. The stu- can have a positive influence on the meaning
dent is producing creative, practical, low-cost dimension of entrepreneurial empowerment.
solutions in ambiguous circumstances. At
the same time, the low-income individual at- For the Students. Poverty is not just about a
tempting to overcome the obstacles outlined lack of income or wealth but represents a mul-
in Table 1 is impacted both from the learn- tifaceted and multidimensional circumstance.
ing process and observing tangible progress It affects and is affected by an array of issues,
in building a venture. By engaging in expe- including housing, education, health, transpor-
riential learning activities related to venture tation, family relationships, personal safety,
creation, low-income entrepreneurs are em- job opportunities, career prospects, and psy-
powered. Thus, pairing low-income entre- chological and emotional well-being. When
preneurs and students in a service learning students work with actual entrepreneurs, par-
context provides a unique symbiotic learn- ticularly those with disadvantages, they care
ing opportunity that facilitates the ontogene- more about the solutions they generate, as they
sis of empowerment in both learning actors. know their efforts can impact people’s lives. By
Accordingly, we propose that: developing a marketing plan for a low-income
business, a student is able to increase the cus-
Proposition 1: Experiential learning activi- tomer base or target a new customer segment
ties that produce solutions to entrepreneur- that was not previously identified and that
ial problems in a powerlessness context might help generate more cash flow in the
have a positive influence on entrepreneur- business and consequently increase the money
ial empowerment of learners (students and that the individual takes home. By perceiv-
low-income entrepreneurs). ing that their work as peer consultants with

SANTOS, NEUMEYER, AND MORRIS 13

low-income entrepreneurs makes a meaningful and directive is the relationship between the
change in others’ lives, students experience the student and the faculty supervisor? While
meaning of their work and potentially develop overly directive supervision can weaken stu-
prosocial behaviors. Construal level theory dent autonomy, faculty supervision that is more
would suggest that these prosocial behaviors collaborative and enabling, where the faculty
have a higher chance of becoming sustainable member sets expectations and provides guid-
as students decrease their spatial, social, and ance, but gives the student room to figure out
hypothetical psychological distance and build solutions, and possibly fail, can significantly in-
relational (instead of just transactional) ties crease the sense of self-determination.
with the low-income entrepreneurs. In addi-
tion, by removing them from their habitual con- For the Low-Income Entrepreneurs. Con-
texts, habit discontinuity would suggest that the crete experiences can also enhance the
chances for behavioral change are enhanced low-income individual’s sense of entrepre-
(Verplanken et al. 2008; Verplanken and neurial empowerment. For instance, partici-
Roy 2016). pating in peer consulting initiatives that target
Where the approach places more emphasis the development of their own business can
on concrete experience, the competence di- increase the value of their work, creating a
mension of empowerment also becomes rel- better future for themselves and their fam-
evant. This relationship is directly related to ilies and thereby enhancing the meaning
Bandura’s (1982) self-efficacy theory (Maynard dimension of their empowerment. Low-income
et al. 2012). By engaging in peer consulting entrepreneurs are also engaging in prosocial
in a poverty context, university students aug- behaviors by cooperating and sharing their
ment their enactive attainment, as they are able insights with student consultants and other
to perform entrepreneurial activities in a re- interested parties. Although they might not
source-constrained and adverse context. They initially perceive themselves as “helpers,” they
also have the opportunity to observe similar decrease their social and hypothetical psycho-
others (i.e., other students and low-income en- logical distance to their entrepreneurial activ-
trepreneurs) who perform successfully on the ities. This reduction in psychological distance
entrepreneurial activities in the same context; can also help them form an entrepreneurial
they receive verbal feedback from faculty and identity with salient features that contribute
mentors on their performance and they learn to the meaning dimension of their entrepre-
to deal with negative emotional arousal states neurial empowerment.
(stress, fear, and anxiety caused by the pow- In addition, concrete experiences con-
erlessness context). Altogether, these sources tribute to the competence dimension of the
of information promote students’ competence low-income entrepreneur’s empowerment,
dimension of empowerment. In addition to as they increase the belief in their ability to
meaning and competence, concrete experi- perform entrepreneurial activities by work-
ences are also relevant to the impact dimension ing with mentors and getting feedback on
of entrepreneurial empowerment, as students the development of their business. They are
are immersed in activities that make a signifi- also asked to apply their theoretical knowl-
cant difference in the others’ personal and pro- edge gathered from more abstract educational
fessional lives and their outcomes. activities. Further, concrete experiences pos-
Pedagogical approaches that emphasize con- itively affect the impact dimension of entre-
crete experience often require significant direct preneurial empowerment. Individuals living
supervision from faculty members and mentors, in poverty conditions have limited resources
and this can reduce one’s sense of indepen- (including time and energy). So, when they
dence or control over behaviors and decisions, participate in a training program that exposes
this is, their self-determination. In an organiza- them to concrete entrepreneurial experiences,
tional context, leader–member exchanges can they reduce their psychological distance to
have a positive influence on an individual’s em- the learned content and see firsthand how
powerment as the decisional responsibility en- that acquired knowledge can be applied in
joyed by the followers allows them to perform a real entrepreneurial context. When low-in-
their task autonomously leading to a sense of come entrepreneurs engage in pedagogical
self-determination at work (Aryee and Chen approaches that emphasize concrete expe-
2006). The question becomes how hierarchical riences, a significant level of supervision is

14 JOURNAL OF SMALL BUSINESS MANAGEMENT

required. During the process of developing approaches focused on reflective observa-
their businesses, low-income entrepreneurs tion create an opportunity for the students to
receive continuous feedback and support be aware of the impact their work may have
from faculty, mentors, and students. Although on the personal and professional lives of
overly directive feedback could decrease the low-income individuals. Frequently, students
low-income entrepreneurs’ self-determina- realize that because of their work and the
tion, a broad network of advisors and collabo- solutions they produce for these ventures,
rators can offer enough supervision variation low-income families increase their dispos-
to enhance low-income entrepreneurs’ auton- able income and this has the potential to
omy and self-determination. Based on these improve their nutrition habits, health condi-
arguments, we propose that: tion, and educational possibilities, contribut-
ing significantly to the impact dimension of
Proposition 2: Pedagogical approaches empha- entrepreneurial empowerment.
sizing concrete experience have a strong pos-
itive influence on the meaning, competence, For the Low-Income Entrepreneurs. Reflec-
self-determination and impact dimensions tive observation approaches, such as guest
of entrepreneurial empowerment of students speakers and follow-up conversations, also
and low-income entrepreneurs. make a contribution to low-income entre-
preneurs’ empowerment. Similarly, mentor-
ing relationships strengthen competence, as
Reflective Observation and mentors can provide exclusive information
Entrepreneurial Empowerment about industry practices, new trends, and crit-
The second stage of Kolb’s (1984, 2014) ical challenges that the low-income entrepre-
learning cycle refers to reflective observations, neur is unaware of. At the same time, men-
a process where one develops insights about tors can serve as role models to low-income
their own experiences and/or those of others. entrepreneurs. Specifically, when reflecting
Reflecting on one’s self-concept is an anteced- about other individuals who were able to com-
ent to perceptions of empowerment (Spreitzer plete the entrepreneurial journey despite their
1995, 2008). exposure to adversity and poverty, individuals
increase their own sense of meaning, compe-
For the Students. When students have to tence, and impact. Low-income entrepreneurs
reflect (e.g., through written assignments) will also profit from reflecting on their own
on their work as consultants with low-in- performance, enhancing their level of entre-
come individuals, they are invited to con- preneurial empowerment. Based on these
sider the personal meaning of their work and arguments, we propose the following:
how that relates to each low-income entre-
preneur and their community. Such reflec- Proposition 3a: Pedagogical approaches em-
tions are important for learning and pro- phasizing reflective observation have a
vide meaning, especially when encountering strong positive influence on the meaning,
“[...] perplexing experiences, working under competence and impact dimensions of en-
conditions of high uncertainty” (Neck and trepreneurial empowerment of students and
Greene 2011, p. 65). Encouraging individuals low-income entrepreneurs.
to reflect upon their personal behaviors and
understanding how their actions and choices While reflective observation can have a
influence their performance and that of oth- strong positive influence on the three men-
ers fosters empowerment (Argyris 1998), tioned dimensions of entrepreneurial em-
specifically on the meaning dimension of powerment, the effect on self-determination
empowerment. Reflective observation can is expected to be weaker and perhaps non-ex-
also have a positive influence on the com- istent. As students reflect on their concrete
petence dimension of empowerment, as stu- experiences and recall the necessary guid-
dents assess their experiences during the ance and supervision from faculty members,
program and this can provide a source of as discussed previously, their sense of au-
information to increase their perception of tonomy or control over work behaviors and
competence. At the same time, pedagogical choice in initiating and regulating action may

SANTOS, NEUMEYER, AND MORRIS 15

be lessened. Similarly, for low-income entre- perceptions of competence as well as their
preneurs, reflective observation approaches sense of self-determination. This is supported
are expected to have a weaker influence on by construal level theory, as formal knowledge
the self-determination dimension of entre- provides students with the necessary scaffolds
preneurial empowerment as individuals may to reduce their hypothetical psychological
perceive how much effort is required to suc- distance and engage in low-level construals.
cessfully escape poverty conditions, which in
turn can constrain their sense of autonomy For the Low-Income Entrepreneurs. When­
and control over the entrepreneurial pro- low-income entrepreneurs attend training
cess. This is also consistent with construal sessions that teach them business and
level theory, as self-reflection tends to gen- entrepreneurship concepts, their sense of
erate high-level construals that increase the competence and self-determination can be
psychological distance to engaging in entre- enhanced. As they process the new knowledge,
preneurial activities. Thus, we propose the they acquire new tools to find weaknesses
following: in their venture creation approaches and
implement new initiatives that help them to, for
Proposition 3b: Pedagogical approaches instance, acquire new customers or negotiate
emphasizing reflective observation have better agreements with suppliers. This in turn
a weak influence on the self-determina- decreases their hypothetical psychological
tion dimension of entrepreneurial em- distance and enlarges their sense of self-
powerment of students and low-income determination. Accordingly, we put forward the
entrepreneurs. following:

Proposition 4a: Pedagogical approaches em-

Abstract Conceptualization and phasizing abstract conceptualization have a
Entrepreneurial Empowerment strong positive influence on the competence
Abstract conceptualization focuses on grasp- and self-determination dimensions of entre-
ing theories, constructs, or frameworks which preneurial empowerment of students and
provide the required work-related knowledge low-income entrepreneurs.
to complete a task. Having the appropriate
knowledge, skills, and abilities to perform the The reflective and assimilating character-
needed tasks contributes to the competence istics of abstract conceptualization have a
and self-determination dimensions of empow- weaker and perhaps non-existent influence on
erment (Spreitzer 1996). the meaning and impact dimensions of entre-
preneurial empowerment, as these pedagogical
For the Students. Throughout their educa­ approaches are decontextualized. When stu-
tional curricula, entrepreneurship students dents read about poverty conditions and their
acquire formal knowledge through abstract implications for the personal life and entrepre-
conceptualization on (a) business basics, neurial efforts of low-income individuals, their
referring to how the different areas of a thinking is detached as they have not experi-
business can be applied in an early stage enced poverty yet, but only read abstractedly
venture context; (b) entrepreneurship basics, about the conceptual aspects of the phenom-
referring to discipline-specific topics such enon. Assimilating the knowledge through
as the entrepreneurial process, innovative formal avenues (e.g., books or lectures) is not
business models, entrepreneurial orientation, sufficient to increase an individual’s extent of
effectuation, and the lean start-up; and (c) caring about the task (i.e., the meaning dimen-
competencies related to an entrepreneurial sion of empowerment) and the extent to which
mindset, targeting the developing of the individual can influence others’ outcomes
students abilities in opportunity recognition, (i.e., the impact dimension of empowerment).
risk mitigation, creative problem-solving, Therefore, abstract conceptualization that is
resource leveraging, and resilience, among often based on generalized non-contextualized
other capabilities (Kuratko and Morris principles will have a weak influence on an
2018). Having this knowledge delivered individual’s meaning and impact dimensions
by pedagogical approaches that focus on of empowerment. This is also consistent with
abstract conceptualization increases students’ construal level theory, as students engaging in

16 JOURNAL OF SMALL BUSINESS MANAGEMENT

high-level construals do not significantly de- where any major external or internal disruption
crease their spatial, hypothetical, or social psy- can lead to failure, to a more stable and
chological distance. robust position. In this interactive process,
For low-income entrepreneurs, lectures pedagogical approaches that incorporate active
about the entrepreneurial journey, business experimentation will have a positive influence
plans, markets, or operations can be overly ab- on an individual’s perception of meaning, as
stract and out of context. When the individual students will be more engaged and therefore
has little to no formal training, is under a tight care more about the task they are performing.
budget, and has very few resources, he or she Students know that the outcome of their field
will have difficulty grasping the connection be- work (e.g., guerilla marketing innovations)
tween an abstract concept and a real-life ap- will directly impact the survival of the
plication. Therefore, abstract conceptualization business and the household of the low-income
will have a weak influence on the meaning and entrepreneur, which in turn increases the
impact dimensions of empowerment. As with meaning of the student’s work. By being able
students, this suggestion is consistent with to successfully develop better solutions for
construal level theory, with the entrepreneur low-income businesses, active experimentation
struggling to engage in low-level construals. activities should positively influence the
Therefore, we propose the following: students’ perception of competence. Finding
solutions to entrepreneurial problems in a
Proposition 4b: Pedagogical approaches em- context where basic survival needs are prevalent
phasizing abstract conceptualization have provides informational inputs that contribute
a weak influence on the meaning and im- to the individual’s belief in his/her capacity
pact dimensions of entrepreneurial em- to successfully accomplish work activities
powerment of students and low-income under adverse circumstances, increasing their
entrepreneurs. abilities to navigate in more resource abundant
settings. In addition, competence is enhanced
as students will receive quick feedback on the
Active Experimentation and impacts of their decisions and actions and
Entrepreneurial Empowerment can subsequently initiate corrective measures.
Pedagogical approaches focusing on active Information and experience generated from
experimentation target a change in the un- accomplishing a task in such an adverse
derstanding of the knowledge of the learner context also increases the self-determination
and require the use of theories to solve prob- dimension of student empowerment
lems and make decisions (Kolb 1984, 2014). as they develop a stronger feel for the kinds of
This type of pedagogical approach offers the actions and decisions that can produce results,
learner an opportunity to test and implement thus increasing their autonomy (Seibert,
the acquired knowledge, strategies, and pro- Wang, and Courtright 2011; Shellman 2014).
cesses in a specific context. This is consistent with construal level theory,
as active experimentation enables students
For the Students. Developing and testing to decrease their temporal, hypothetical, and
different business models in a poverty context social psychological distance and engage in
is very different from a non-poverty context. low-level construals.
The student has to deal with a low-income
entrepreneur that has poor financial and For the Low-Income Entrepreneur. Test-
technology literacy, is usually trapped in a ing and developing business models, products,
business model with extremely low margins, customer service approaches, marketing mate-
small volumes, high relative unit costs (but rials, and operational systems for their (pro-
a corresponding lack of key equipment, spective) business is likely to increase all four
personnel, and technology), and a very limited dimensions of entrepreneurial empowerment.
number of revenue sources. By trial and error, the Using active experimentation, low-income
student and low-income entrepreneur engage entrepreneurs can connect abstract con-
in active experimentation to fix such business cepts and real-time applications nearly instan-
models and improve small and inconsistent taneously and thereby reduce their hypothet-
profits, and consequently to transition the ical psychological distance. In addition, the
venture from a highly vulnerable position, collaboration with a third party (e.g., students)

SANTOS, NEUMEYER, AND MORRIS 17

enables them to learn from a different per- more personal and intense, the student also
spective and recognize the value of external witnesses substantive changes in the venture
feedback in the development of their venture, that can meaningfully contribute to breaking
decreasing their social as well as hypothetical the owner’s cycle of poverty. The symbiotic
psychological distance. Accordingly, we pro- peer learning relationship established between
pose the following: university students and low-income entrepre-
neurs sparks the empowerment elements of
Proposition 5: Pedagogical approaches em- meaning, competence, self-determination, and
phasizing active experimentation have a impact. As the student and low-income entre-
strong positive influence on the meaning, preneur perceive greater meaning, an enhanced
competence, self-determination and im- sense of competence, feelings of being able to
pact dimensions of entrepreneurial em- control things, and an increased feeling that
powerment of students and low-income they can do things that matter, learning out-
entrepreneurs. comes become more attainable. For instance,
successfully helping someone in poverty move
forward in terms of venture creation improves
the student’s own entrepreneurial self-efficacy,
Learning Outcomes and EEE
while giving them a much richer understanding
Increasing levels of entrepreneurial em-
of poverty, its implications, and how to solve
powerment can lead to improved learning
problems in adverse conditions. At the same
outcomes for learners (e.g., students and
time, providing the low-income entrepreneur
low-income entrepreneurs) (e.g., Cleary and
with the necessary understanding and concep-
Zimmerman 2004). Shellman (2014, p. 23)
tual tools to leverage the resources of others to
notes that “many documented outcomes (…)
support his/her venture enhances the probabil-
attributed to experiential program models are
ity of them creating enough wealth to escape
related to empowerment.” Sibthorp, Paisley,
the commodity trap. Moreover, improvement on
and Gookin (2007) demonstrate that partici-
a given outcome (e.g., business and entrepre-
pants who experienced greater empowerment
neurial problem-solving skills) serves to further
by engaging in experiential education also
empower the student and the low-income entre-
achieved better performance on training out-
preneur as it reinforces the identity, impact, and
comes including improved leadership, commu-
other empowerment dimensions. Based on this
nication, and technical skills. Desired learning
discussion, we offer the following propositions:
outcomes will vary depending upon the level
and type of educational program in question. Proposition 6a: Experiential learning initia-
As the student engages in various types of tives that increase entrepreneurial empow-
experiential learning activities by working in erment positively influence achievement
partnership with those in poverty, a dynamic of learning outcomes by students and low-
interplay occurs between empowerment and income entrepreneurs.
learning outcomes. The student is immersed
in a process of (a) identifying the needs and Proposition 6b: Achievement of learning
challenges involved when a person in adverse outcomes further enhances the student’s
circumstances attempts to launch or grow a and low-income entrepreneur’s sense of
venture; (b) building networks and interact- empowerment.
ing with clients, customers, suppliers, distrib-
utors, and other stakeholders connected to the Figure 1 depicts a conceptual model cap-
low-income venture; (c) encountering obstacles turing these variables and relationships in-
inherent in the poverty conditions when at- volved in the EEE. In essence, when students
tempting to arrive at solutions with constrained and low-income entrepreneurs are exposed to
resources; (d) uncovering basic solutions while different experiential learning approaches in a
leveraging resources; (e) experimenting with context of relative powerlessness (such as pov-
and adapting those solutions; (f) observing and erty in developed countries), specific elements
working with the client as solutions are adopted of empowerment can be fostered, which then
and further modified; and (g) experiencing a enhances the achievement of learning out-
sense of progress being made in spite of the ad- comes, and progress on these outcomes has a
verse circumstances. While student engagement reciprocal effect on students’ and low-income
with the low-income entrepreneur becomes entrepreneurs’ empowerment.

18 JOURNAL OF SMALL BUSINESS MANAGEMENT

 Figure 1
Conceptual Model of Empowerment-Based Entrepreneurship
Education
Experiential Learning Experiential Learning Learning Outcomes
Learning Outcomes
Pedagogical Approaches in Pedagogical Approaches in For Low-Income
For Students
Entrepreneurship for the a Poverty Context for the Entrepreneurs
Low-Income Entrepreneurs Students Entrepreneurial
Empowerment Understanding
Nature of Entrepreneurial

experience
Peer Consulting, Peer consulting,

Concrete
Poverty Literacies
Mentorship Internships in survival P2
Pitches and applications ventures, P2
to Micro-credit Pitches to Micro-credit
P2 Meaning
Recognizing
P2
Venture Opportunity
Challenges Horizon

observation
Follow-up interviews,

Reflective
P3a
Guest Speakers, Diaries, Interviews of P3a
Follow-Up Interviews entrepreneurs, P3b
Guest lectures Competence P6a
Entrepreneuria Mastery of
P3a Entrepreneuria
l Self-Efficacy
P6b l Competencies

Lectures, Field
conceptualization P4b
P4a
Self-
Abstract

Training bootcamps / research, Mastery of

P4a
Entrepreneuria Resource
Lectures, Readings Case studies, Readings, Determination
Theory papers P4b l Competencies Leveraging

P5
P5
P5 Impact Solving
experimentation

Develop business Business model Business Financing

model, development, Problems Strategies
Active

P5
product/service Marketing inventions,
marketing materials Field experiments

Direct effects of specific pedagogical approaches on the dimensions of entrepreneurial empowerment that are posited to be strong

Direct effects of specific pedagogical approaches on the dimensions of entrepreneurial empowerment that are posited to be weak

Direct effect of entrepreneurial empowerment on the learning outcomes and reciprocal effect of learning outcomes on entrepreneurial
empowerment that are posited to be strong

The Entrepreneurship and their businesses. At the same time, EAP pro-
vides a unique learning context for students
Adversity Program: An and low-income entrepreneurs with a diverse
Overview set of experiential learning activities that foster
To illustrate the application of this con- entrepreneurial empowerment that then pos-
ceptual model, we draw from an initiative itively influence the achievement of learning
launched during the spring of 2016 by a uni- outcomes. The overall program model for EAP
versity in the southeastern United States. The is pictured in Figure 2.
Entrepreneurship and Adversity Program The first element involves training boot-
(EAP) is an integrated, multifaceted program camps that target low-income individuals trying
to empower those living in poverty and related to start or grow ventures. Held in the commu-
adverse circumstances to create and grow their nity, these bootcamps introduce basic tools,
own businesses. EAP exists at the interface be- concepts, and principles relevant to launching
tween the university, specifically the entrepre- a successful venture when one has little to no
neurship and innovation center, and the local resources or background. Modules cover (a)
community. A diverse set of stakeholders are the entrepreneurial journey and developing vi-
involved in EAP both on the campus and in able venture concepts; (b) business plans and
the community. A total of 60 students and 95 planning; (c) understanding record-keeping,
low-income entrepreneurs participated in the costs, and how to make money; (d) resourcing
first two years of EAP. The program contains when you have no money; (e) how to market
six key elements that align with empowerment and make sales happen; and (f) the basics of
and experiential learning principles and is de- operations and value creation.
signed to be replicable on other campuses and The second element of EAP includes a peer
in communities. These elements provide con- consulting initiative, where students (coached
tent, training, instruction, and resources to in- by faculty members) work one-on-one with the
dividuals in poverty who want to start or grow poverty entrepreneurs helping them to launch

SANTOS, NEUMEYER, AND MORRIS 19

 Figure 2 to connect entrepreneurs to other resources in
the community through public forums, an inter-
Intervention Model for the net platform, and other communication vehicles.
Entrepreneurship and Adversity The networking forums are held quarterly, each
Poverty with a different theme, with the last one in the
year used to showcase the low-income entrepre-
neurs, their products/services, and ventures.
Venture
The final element of the intervention model
Training
is concerned with developing the best practices
and documenting an approach that can serve
Venture Program
Research
as a transferable model for cities around the
Consulting
country. This research component centers on
building a longitudinal database for tracking the
POVERTY
ALLEVIATION low-income entrepreneurs, their ventures, per-
sonal development, progress in terms of busi-
ness development, and performance outcomes
Venture Venture
of their ventures. The purpose here is to doc-
Mentoring Connecting
ument what works and does not and share a
model of community-focused entrepreneurship
Venture
Funding
and poverty alleviation with those involved in
economic development, poverty alleviation, and
public policy. Accordingly, and although the pro-
gram predominantly aims to enhance individual
empowerment, the sixth and final component is
and grow ventures. This element involves a designed to empower the community as well.
concrete experience approach for both stu- Organic development of businesses by those re-
dents and entrepreneurs. In employs a “pro- siding within neighborhoods suffering from pov-
cess consulting” perspective (e.g., Morris et al. erty can serve to keep more money within the
2011), where a symbiotic relationship unfolds community (and such retention of dollars has a
between the two parties, and outcomes and de- multiplier effect on the local economy), create
liverables are mutually developed (see Table 2 role models for those residing in these neighbor-
for examples of deliverables from students in hoods, and contribute to a sense of community
the first two years of the program). The learn- pride as citizens find the vendors working on
ing process is fostered by a series of feedback their houses or cars and selling them goods and
loops (Oxendine, Robinson, and Willson 2004) services are from their own ranks.
based on regular weekly meetings between stu- Program development is dependent upon a
dents and entrepreneurs. collaborative set of partners who support the
The third element of EAP consists of mentors initiative. This has included on-campus part-
who are assigned to work with the low-income ners (e.g., entrepreneurship center, office for
entrepreneurs on a one-on-one basis over a vendor diversity relations, center for women’s
six-month period. These mentors are success- studies, office of research) and community
ful entrepreneurs who offer advice and guid- partners (e.g., county and city governments,
ance through periodic interactions. The mentor low-income housing authority, a cultural devel-
pool is built by reaching out to the small busi- opment center, a job training and development
ness community through the local Chamber of organization, the chamber of commerce, mi-
Commerce. nority neighborhood associations, a local com-
The fourth element of EAP involves work- munity college, various nonprofits, a bank, and
ing with city officials and local financial institu- an economic development agency).
tions to create a micro-credit fund that provides Although the program purpose centers
low-interest and no-interest loans and grants to on empowerment of the poor through en-
individuals as they attempt to launch ventures. trepreneurship, with specific metrics tied to
During the first two years of the program, the progress made by low-income individuals as
city has invested $100,000 and efforts are un- they navigate the entrepreneurial process,
derway to obtain corporate matches. The fifth EAP is also a unique setting for EEE among
element of EAP involves a series of initiatives students. As a form of experiential learning,

20 JOURNAL OF SMALL BUSINESS MANAGEMENT

 Table 2
Sample Student Deliverables Produced for Low-Income
Entrepreneurs
Registering companies (N = 7 ventures) and getting permits (N = 4 ventures)
Creating websites (nine ventures) and improving existing websites (N = 14 ventures)
Modifying the product/service mix and inventory policies (N = 6 ventures)
Enhancing product or service quality (N = 4 ventures)
Contributing to enhanced market definition, segmentation of customers, and formulation of
prospect lists (N = 15 ventures)
Launching social media site and campaigns (N = 22 ventures)
Producing marketing materials and approaches (N = 29 ventures)
Designing simple selling processes and conducting client role plays (N = 8 ventures)
Developing bookkeeping systems (N = 10 ventures) and improved a number of others
Reformulating pricing approaches (N = 15 ventures)
Assisting with dealing with suppliers (N = 4 ventures)
Renegotiating contracts (N = 3 ventures)
Helping with site selection (N = 2 ventures) and facility design (N = 2 ventures)
Acquisition of equipment (N = 3 ventures)
Creating client and other business databases (N = 9 ventures)
Designing operating models, service delivery processes and employee manuals (N = 12
ventures)
Registering clients as minority- or women-owned vendors with government bodies and the
university (N = 6 ventures)
Helping clients get interns (N = 2 ventures)
Improving business models (N = 31 ventures)

the diverse elements of the EAP program ex- were identified through student evaluations
plicitly reflect the learning framework pro- and exit interviews with all participating stu-
posed by Kolb and Kolb (2005), as depicted dents. Each is summarized as follows:
in Figure 1. While contributing to alleviate a. Understanding the nature of poverty
poverty by helping low-income individuals and venture creation challenges—A key
to create and grow their ventures, the em- learning element for students is recognizing
phasis is also on the learning styles of stu- that poverty is not a characteristic of a per-
dents, how these are affected by different son, but rather, of a situation—and each en-
pedagogical approaches within a poverty trepreneur experiences poverty differently.
context and, as such, create a unique context Critically, students come to appreciate the
to promote empowerment. The focus is on multifaceted nature of poverty (Morland
a holistic learning experience that emerges et al. 2002; Payne, DeVol, and Smith 2009;
based on ongoing student and low-income Wilson 1996b, 2012). They recognize that
entrepreneur interactions. poverty does not exclusively affect material
resources, but also the emotional and moti-
Key Learning Outcomes for Students vational state of the entrepreneur. It begins
While participating students have had a with a severe lack of resources, where stu-
wide range of unique experiences and real- dents see how priorities must be set and
ized an array of personal benefits that pro- choices made between needs of the ven-
mote their entrepreneurial empowerment, four ture and other needs (the utility bill, feed-
major learning outcomes have emerged. These ing the family, paying for transportation,

SANTOS, NEUMEYER, AND MORRIS 21

seeing the doctor). Pressing financial needs coming from better economic conditions.
create a short-term orientation and under- While the low-income entrepreneur may not
mine the ability to learn how to save, while have a lot to lose in absolute dollar terms,
late payments and defaults compromise the economic implications of a failed venture
the building of a good credit history and are far greater, and the odds against these
strong credit score. Time is another scarce ventures are stronger. The low-income entre-
resource. Many of the low-income clients preneur is forced to focus more on the poten-
are working two jobs and have extensive tial downside as opposed to the upside. This
family responsibilities. The result is not just reality motivates and inspires students as it
a lack of time to plan or consider new pos- highlights the courage exemplified by these
sibilities but can also include ongoing fa- low-income entrepreneurs in trying to launch
tigue. Students also encounter low-income and grow a business. At the same time, while
entrepreneurs with inadequate housing, finding out that the low-income entrepreneurs
poor diets, health problems coupled with are open to ideas and suggestions in many
no health insurance, lack of transportation, areas, students encounter a conservative at-
and subject to high crime rates. Many of titude among them when it comes to experi-
their clients are somewhat segregated from menting with such core business elements as
the rest of the community which, when prices, products offered, entry into different
combined with these other circumstances markets, and incorporation of technologies to
limits the nature and reach of their social enhance operations. Tangible progress in any
networks and their ventures. one area (registering the business, launching
b. The commodity trap—Ventures started a website, negotiating a contract) contrib-
by the poor are disproportionately survival utes to a sense of momentum, reinforcing
and lifestyle businesses (Morris, Santos, and the low-income entrepreneur and motivating
Neumeyer 2018b). The combination of a lack of him/her to pursue additional steps that they
resources, financial and technological literacy were otherwise putting off.
issues, and limited opportunity horizons tends d. Lack of infrastructure and shortcomings
to produce ventures characterized by low-entry of ecosystems—The concept of entrepreneurial
barriers, extensive competition, labor intensity, ecosystems has received considerable attention
little meaningful differentiation, little to no tech- within university entrepreneurship programs
nology, a lack of economies in procurement or (Colombo et al. 2017). Students are taught that
operations and an attempt to compete on the such ecosystems are emerging in communi-
basis of price. Students come to recognize how ties and regions across the globe—and even
this set of circumstances produces “the com- within universities. They are encouraged to
modity trap.” The low-income entrepreneur is become part of and rely upon these ecosys-
effectively selling a commodity where custom- tems to launch and grow ventures. But work-
ers perceive little difference among competitors ing with low-income entrepreneurs gives them
and are not especially loyal, and the combina- a firsthand understanding of both the value
tion of relatively high unit costs and low prices of infrastructure elements that they may take
results in poor or nonexistent margins. There for granted together with the shortcomings
is little money for marketing and the customer of existing ecosystems. Contemporary ecosys-
base itself is often of limited means. The result tems are perceived to focus more on technolo-
is creative friction for students working in peer gy-based and high growth start-ups, with little
consulting with low-income entrepreneurs, as in the way of services and support for the ven-
students attempt to identify possible paths to tures of the poor. The needs of these ventures
create a sustainable venture and avoid the com- (microcredit programs, literacy training, entre-
modity trap. preneurship seminars tailored to the poverty
c. The nature of risk, role of courage, and context, incubator space, mentors, vouchers for
power of progress—Students, like many in transport, daycare, or to pay for services—e.g.,
society, tend to have a relatively simplistic legal, accounting, marketing) are generally not
understanding of risk and return, assuming available in local entrepreneurial ecosystems
the two should be positively correlated. They (Neumeyer et al. 2018), creating frustration
come to understand how the risk equation among the low-income entrepreneurs, and re-
for a person in poverty is not the same, and quiring students to adapt strategies and solu-
arguably is more complex, compared to those tions to fill these gaps.

22 JOURNAL OF SMALL BUSINESS MANAGEMENT

Key Learning Outcomes for Low-Income them are tied to the things they know, regularly
Entrepreneurs observe, and have experience with. If a per-
Low-income entrepreneurs participating son has little exposure to a computer, it is diffi-
in the EAP program and engaging in multi- cult for them to perceive opportunities related
ple experiential learning activities increase to computer equipment, software, networks,
their entrepreneurial empowerment, and or services. One’s context can restrict the in-
this facilitates the acquisition of key learn- formation content to which one is exposed
ing outcomes. These were identified through while imposing rules and norms regarding
exit interviews with all participating low-in- how things are done, how one gets ahead, and
come entrepreneurs. Each is summarized as what is appropriate (Welter 2011). It provides
follows: information while serving as a lens through
a. Entrepreneurial literacies—Literacy prob- which information is processed. Low-income
lems vary significantly among the poor, with di- entrepreneurs recognize the world as they see
rect implications for entrepreneurship (Ahmed it, seriously restricted by poverty conditions.
2011; McIntosh and Vignoles 2001). While im- Low-income entrepreneurs may see opportu-
proving their functional literacy with reading, nities in personal care, cleaning, transport, or
writing, and communicating skills, low-income construction, and they are typically unable to
entrepreneurs learn that literacy is multifaceted. recognize opportunities related to smartphone
Low-income entrepreneurs acquire business apps, genetic engineering of crops, or design
literacy (e.g., basics of administration and re- of drones. Similarly, within a given industry or
cord-keeping, organizing processes, managing market, such as plumbing, low-income entre-
inventory, segmenting markets, selling, hiring), preneurs may see the opportunity to provide
financial literacy (e.g., understanding margins, plumbing services to households who have a
assets, and liabilities, types of costs, how to specific problem, but not perceive the need for
save and manage credit), technological literacy selling plumbing service contracts that provide
(e.g., the use of different technologies to sup- preventive maintenance and repair at a fixed
port business operations, and the development annual rate. Through EEE, low-income entre-
of technology-based products and services), preneurs significantly expand their opportunity
and economic literacy (e.g., understanding sup- horizons. This can happen when the individual
ply and demand conditions, the implications is exposed to new sources and types of infor-
of changes in economic conditions, the nature mation, influences, and experiences (Alvarez
of economic incentives and disincentives, and and Barney 2014). Low-income entrepreneurs
cost–benefit analysis). Improved levels of lit- expand their horizons through interactions
eracy contribute to better pricing decisions, with various stakeholders (e.g., students, fac-
management of cash flow, understanding and ulty, suppliers, distributors, customers, govern-
negotiating contracts, engaging in proper sell- ment officials), conducting research, employing
ing and marketing, preparing bids, keeping ac- the process consulting model, and the array of
counting records, complying with regulations, other possibilities created by EAP.
filing taxes, integrating technology into their c. Resource leveraging and the power of
businesses, and using social media and online guerrilla—A lack of resources combined with
tools. inaccessible debt or equity finance produces
b. Expanding opportunity horizons—The perhaps the most evident barrier to entrepre-
ventures launched by the poor, and the man- neurship among the poor, as it seems all but
ner in which they are pursued, are impacted impossible to pursue a venture when you have
by the low-income entrepreneur’s oppor- nothing. Low-income entrepreneurs develop
tunity horizon, or the range of possibilities skills in three areas related to this point: the
they are able to perceive in the external en- ability to see things as resources where others
vironment (Morris, Schindehutte, and LaForge do not see them as such; the ability to stretch
2002; Morris, Santos, and Neumeyer 2018b). resources and apply them in new and different
As Berkman (2015) notes, poverty restricts a ways; and the ability to utilize the resources
person’s vision and the sense (Kloosterman of others without paying for them, or paying
2010) of what might be possible. Low-income much less than they are worth. Terms like
entrepreneurs in the program are exposed to bootstrapping, leveraging, and guerrilla be-
the opportunity horizon concept firsthand, rec- havior are given real meaning, as low-income
ognizing how many of the ventures started by entrepreneurs have to mobilize resources for

SANTOS, NEUMEYER, AND MORRIS 23

their ventures using these techniques. On the entrepreneurs experience empowerment as
assumption that the low-income entrepreneurs “an ability to mobilize economic capital (in-
will be unable to purchase a truck, afford a vestment) and social capital (capacity building)
point-of-sale system, pay rent, or hire an em- over a long period in an entrepreneurial ap-
ployee, they have to identify things as potential proach” (Turner 1999, p. 17).
resources that otherwise might not be seen as
such, and to access resources by borrowing,
sharing, co-producing, stretching, outsourcing, Conclusions, Contributions,
bartering, and leasing on a temporary basis. and Future Research
Beyond tangible resources, the entrepreneurs We have aimed to integrate the different
expand their social networks, establishing ties strands of literature on empowerment and
to resources relevant for launching and grow- build a conceptual framework that connects
ing a venture. empowerment to entrepreneurship education
d. Financing strategies for the venture— in a poverty context, where a symbiotic peer
Finding the necessary financial resources is learning relationship emerges between univer-
typically emphasized as the single biggest ob- sity students and low-income entrepreneurs.
stacle to starting a business. Traditional sources Best viewed as a starting point for a new
of financing do not cater to the needs of the stream of research, the propositions and con-
poor, and in some cases they actually discrim- ceptual framework presented here lay a foun-
inate against or create barriers for those in dation for addressing critical questions about
poverty when trying to start ventures (Servon empowerment in entrepreneurship education,
2006). Low-income entrepreneurs learn how and invite empirical testing to facilitate further
to accomplish the pre-start-up stage with very developments.
little spending, minimize cash needs, finding Much has been written and said about en-
ways to do more with less, reuse and repur- trepreneurship education being a form of
posing of resources, and use the resources of empowerment for individuals, institutions, or-
others. He/she may qualify for assistance from ganizations, and communities, yet there is little
government and nonprofit organizations for to show in terms of conceptual development
small grants or other forms of resource sup- and theorizing when it comes to this intriguing
port. These entrepreneurs also learn how to phenomenon. We correct this gap by propos-
pursue new emerging sources, including mi- ing a conceptual framework of entrepreneurial
crocredit, crowdsourcing, cooperative funding empowerment that opens new doors for un-
schemes with other entrepreneurs, and cus- derstanding how experiential learning can pro-
tomer funding strategies. Through microcre- mote empowerment and the kinds of learning
dit programs, they can avail themselves of a outcomes it is able to produce. In doing so, our
range of services, including savings accounts, study moves beyond the traditional boundaries
insurance, credit and loans, and money trans- of the university (Kuratko and Morris 2018) to
fers, financial advice, mentoring, procurement establish EEE as a platform to empower peo-
assistance (i.e., for government and corporate ple—university students and low-income en-
contracts), business incubators, and personal trepreneurs—and communities, showing “the
financial management training. importance of individual empowerment—that
Beyond these learning outcomes for both stu- is, inner transformation—in collective action for
dents and low-income entrepreneurs, positive community economic development” (Wilson
improvements have also been identified across 1996b, p. 618). Accordingly, our study positions
a range of entrepreneurial competencies (e.g., entrepreneurship education in a broader socio-
opportunity recognition, risk management, economic context, namely poverty, in line with
adaptability, creative problem-solving) (Morris, the recent call on addressing poverty in busi-
Webb et al. 2013; Santos, Caetano, and Curral ness schools (Neal 2017).
2013). Through EEE, students and low-income Our theoretical propositions are fur-
entrepreneurs recognize the empowering po- ther examined through a model program
tential of entrepreneurship, develop a greater (Entrepreneurship and Adversity Program,
sense of community responsibility, and feel EAP) that is built on the principles of service
empowered themselves to make a difference and experiential learning. EAP’s main intention
through their personal and professional lives. of fostering community economic development
Accordingly, both students and low-income among the poor through entrepreneurship also

24 JOURNAL OF SMALL BUSINESS MANAGEMENT

provides empowering service learning oppor- limited resources, can play a role in generating
tunities for students to engage in academic sustainable enterprises for local individuals liv-
ways of knowing and experiential ways of ing in the most economically challenging situa-
doing, which in turn facilitate the acquisition tions (Morris et al. 2011).
of learning outcomes that would be difficult to What future research avenues need to be ex-
achieve in other learning contexts. In the EAP plored? Placing entrepreneurial empowerment
context, service learning helps prepare students as a key mechanism in entrepreneurship educa-
for the pragmatic realities of entrepreneurship tion opens several avenues for future research,
practice in disadvantaged and constrained cir- at the individual, university, and community
cumstances. At the same time, the university levels. Table 3 summarizes ideas for potential
and the entrepreneurship program, with very research avenues.

Table 3
Research Opportunities on Empowerment-Based Entrepreneurship
Education
Individual Level University and Community Levels
Examine the interactive effects of entrepreneurial Examine the effects of universities in
empowerment dimensions promoting empowerment-based
entrepreneurship education to
different stakeholders
Operationalize entrepreneurial empowerment and Consider the differential role of
assess psychometric properties faculty, mentors, and students in
promoting entrepreneurial
empowerment through educational
services
Consider the interaction of individual characteristics Determine the effect of community
and learning context characteristics leading to connectedness in empowerment-
entrepreneurial empowerment based entrepreneurship education
Explore the effect of different learning conditions Assess the role of multiple community
and approaches on entrepreneurial empowerment stakeholders in promoting
entrepreneurial empowerment and
access to entrepreneurship education
Examine the relation between previous knowledge, Assess the long-term community
skills, and abilities on entrepreneurial empowerment outcomes (e.g., number of ventures
and jobs created) of empowerment-
based entrepreneurship education
Examine the role of social relationships with peers Examine the role of poverty
that promote entrepreneurial empowerment alleviation programs based on
entrepreneurial empowerment on
local economic development
Examine the fluctuations of entrepreneurial
empowerment during the educational experience
Explore the relationship between entrepreneurial
empowerment and entrepreneurial intentions
Examine the link between entrepreneurial Examine the development of prosocial
empowerment and the development of prosocial behaviors through targeted
behaviors programming
Examine low- and high-level construals in the
development of entrepreneurial empowerment

SANTOS, NEUMEYER, AND MORRIS 25

 Overall, these questions can be explored combined instead of examining them as com-
by qualitative and quantitative methods. peting approaches to entrepreneurship. Thus,
Longitudinal research following the path of entrepreneurship education benefits from a
the poor over time is particularly important hybrid and dynamic perspective where em-
to analyze the effects of entrepreneurship in- powerment, attitudes, and intentions rein-
terventions in breaking the poverty cycle and force each other over time and throughout
increasing household earnings. In addition, the educational experience.
multilevel research methods are also critical With this study, we also highlight EEE as a
to address these questions, as poverty is not means for breaking out of the vicious cycle
isolated at the individual level, but has a wide of poverty among low-income individuals.
array of complex interactions at local, regional, The experience of poverty poses social and
national and worldwide levels. economic challenges that directly impact
Our work on empowerment is also a good the choices people make, constraints they
starting point for researchers interested in the face, and opportunities available to them.
development of prosocial behaviors. Much re- Therefore, policies need to be further re-
search in (social) entrepreneurship has focused fined to provide a comprehensive portfolio
on entrepreneurs’ (or students’) need to help of services and programs for poverty entre-
others (Mair and Noboa 2006), ignoring other preneurs, but also entrepreneurial activity
motivations such as an individual’s social and in general (Morris, Neumeyer, and Kuratko
economic condition, desire for direct or indi- 2015; Morris, Santos, and Neumeyer 2018a).
rect mutual exchange, or adherence to one’s Critically, pursuit of entrepreneurship should
perceived system of fairness (Batson 1987). not be seen as the exception—something that
Therefore, an often overlooked but important only unusual and especially gifted or lucky
aspect in discussions of prosocial behaviors is individuals are able use to uplift them from
the emergence and fostering of equitable rela- poverty. Our argument is that, in spite of the
tionships between two (or more) socioeconom- substantial obstacles faced by the poor, it
ically divided parties. If we take the example should be the norm, and empowerment entre-
of a soup kitchen, we find that the relation- preneurship education, as part of EAP, plays
ship between the giver (student or any other a critical role in providing the poor with the
volunteer) and the receiver (impoverished indi- necessary resources, competencies, and abil-
viduals) is one of dependency and not equity. ities to start and grow businesses. Whether
Therefore, (entrepreneurial) empowerment of- they are starting ventures that are part-time
fers an avenue that can develop prosocial be- or full-time, formal or informal, legal or less
haviors that focus on sharing and cooperation than legal, for-profit or nonprofit, entrepre-
(Brief and Motowildo 1986). Lastly, connecting neurship is accessible to all. It is a worthy
prosocial behaviors and empowerment with path of self-empowerment, where the individ-
construal level theory can help in the devel- ual creates and then captures value, addresses
opment of educational experiences that build needs, and can contribute to the fabric of a
participants’ high- and low-level construals, community.
thus producing more complete and prepared
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