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Effectuation Publications Library
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A Stakeholder-Centric Entrepreneurship Approach to Poverty and Development
2015
Saras Sarasvathy Chowdhury Rashedur R Edward Freeman
Our stakeholder-centric entrepreneurship framework offers a perspective on how to combine entrepreneurial opportunities as means and stakeholder capability as ends so that firms can address critical social problems while remaining innovative and competitive. When firms adopt marginalized stakeholders capability development, firms provide stakeholders with diverse skill sets and various forms of choices and freedom. This enables firms to create an increased set of high potential opportunities for all stakeholders because marginalized stakeholders bring new ideas that are a source of innovation and higher-level learning for other stakeholders. The sustained success of firms therefore relies on the enhancement of stakeholder capability rather than value creation through separate sets of purely economic and social activities.