Economists tout entrepreneurship as panacea for poverty

 

According to Unicef, over half of households in Kuala Lumpur say their financial circumstances are worse now compared with 2022 when the Covid-19 pandemic was at its peak.

PETALING JAYA: Economists have suggested promoting entrepreneurship as the best way to lift people out of poverty, given the current economic challenges.

Center for Market Education CEO Carmelo Ferlito said apart from enabling individuals to achieve financial success, entrepreneurship could also help to stabilise the economy by creating jobs and fostering innovation.

Sharing his sentiment was Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid, who said that successful entrepreneurship programmes had helped to give the economically disadvantaged a leg up.

They were commenting on the findings of a study by Unicef, released on May 8, that the living conditions for a significant portion of those in the lower strata of society had remained stagnant or deteriorated despite the fact that the Covid-19 crisis had eased and many had returned to work.

Ferlito said entrepreneurship opened the door to economic self-reliance.

“It empowers individuals, especially those from low-income families, to shape their economic future,” he told FMT.

He said it was important for the government to ensure a conducive environment where emerging entrepreneurs can succeed.

He said there should also be financial resources, educational opportunities focused on business skills and a regulatory framework that facilitates business innovation.

Entrepreneurship generates employment and contributes to the gross domestic product, making it a potent tool for addressing systemic urban poverty, he added.

According to Unicef, over half of households in Kuala Lumpur reported that their financial circumstances were worse now compared with 2022 when the Covid-19 pandemic was at its peak.

Afzanizam singled out successful initiatives such as the iTekad programme led by Bank Negara Malaysia and various Islamic banks that, he said, had helped to lift many out of poverty.

“These programmes, combined with micro-financing, business training and mentoring, have shown promising results,” he told FMT.

“They have helped participants improve their livelihoods through enhanced business performance.”

Afzanizam said participants saw not only improved business outcomes but also an elevated standard of living.

“Entrepreneurship provides a viable route out of poverty. It equips individuals with the skills and resources essential for success,” he said.

“Perhaps we need to publicise their success stories to inspire others who also aspire to excel in business.” - FMT