Entrepreneurship and ethics under extreme conditions of poverty: “Exploring the realities”

TLDR: In this article, the authors investigated the relationship between entrepreneurship and ethics under extreme poverty conditions to unearth context-specific nuances faced by entrepreneurs in these conditions and found that a different mindset is required for entrepreneurs to conduct business in conditions of extreme poverty, and therefore a different approach is needed to evaluate business ethics instead of a wholesale adaptation of Western-based ethical values and practices.

Abstract: Purpose This article investigates the relationship between entrepreneurship and ethics under extreme poverty conditions to unearth context-specific nuances faced by entrepreneurs in these conditions. Design/methodology/approach A qualitative case study, research method approach was used to collect data from established firms engaged in some form of entrepreneurship and new entrepreneurs. Findings Findings from the study indicate that a different mindset is required for entrepreneurs to conduct business in conditions of extreme poverty, and therefore a different approach is needed to evaluate business ethics instead of a wholesale adaptation of Western-based ethical values and practices. The study identifies and provides evidence of imitative entrepreneurship undertaken by both new entrepreneurs and established firms to address basic human needs such as for food and personal hygiene. Research limitations/implications The emic focus on Zimbabwe, which has its own inherent circumstances, has the potential to minimise the generalisability of findings from the study. However, this does not detract from the findings of the study but actually provides a basis for further research in other markets that have extreme poverty conditions. Practical implications Coping strategies are outlined for managing constraints faced by entrepreneurs and opportunities for interacting with consumers. A conceptual framework is developed for use in understanding and managing the relationship between entrepreneurship and ethics in markets where there are conditions of extreme poverty. Originality/value Previous studies have largely focused on Western developed markets. This article extends the debate to markets under conditions of extreme poverty.