Does opportunity co-creation help the poor entrepreneurs? Evidence from China

Abstract

Extreme poverty can be alleviated through entrepreneurship, but starting a business can be elusive among impoverished people, partly due to a lack of access to entrepreneurial opportunities. In the current literature, the source of entrepreneurial opportunity for the poor remains unclear. To address this knowledge gap, we used the opportunity co-creation perspective to examine the impact of opportunity co-creation on the entrepreneurial performance of the poor and its various influence pathways. We developed a chain multiple mediation model and surveyed 330 poor entrepreneurs from the Wuling Mountain Region, which used to be one of the 14 contiguous poverty-stricken areas in China until the end of 2020 when the country announced the eradication of extreme poverty. Data analysis was done using structural equation modeling (SEM). The results suggest that opportunity co-creation has a direct positive effect on the entrepreneurial performance of the poor and an indirect positive effect through the chain mediating effect of opportunity beliefs and entrepreneurial behavior. The findings confirm that opportunity co-creation is a critical factor for entrepreneurs in poor areas to overcome the lack of entrepreneurial opportunities and can also contribute to a better understanding of opportunity beliefs and entrepreneurial behavior. Furthermore, these results have important implications for poor entrepreneurs and provide opportunity co-creation solutions for poverty reduction through entrepreneurship.