Toward a Theory of Community-Based Enterprise
Academy of Management Review, Vol. 31, No. 2, pp. 309-328, 2004
50 Pages Posted: 31 Jul 2008
Date Written: August 10, 2004
Theoretical models that separate social, political and environmental factors from the economics dimensions of entrepreneurship cannot account for the failed experiences in business development among very poor populations. In this article, we develop the concept of Community-Based Enterprise (CBE) and argue that it provides a potential strategy for sustainable local development. We maintain that in this emerging form of entrepreneurship, typically rooted in community culture, natural and social capital are integral and inseparable from economic considerations, transforming the community into an entrepreneur and an enterprise. Drawing on interdisciplinary and multilevel approaches, we propose a theoretical model of the determinants, characteristics, and consequences of CBEs.
Keywords: comunity-based enterprise, poverty, development
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