Abstract
Rapidly changing business environments and the use of inclusive systems have magnified the emerging concept of “ecosystem” for the businesses. The need of ecosystem is further amplified for entrepreneurs working in underserved marginalized communities where networks and collaborations can play a catalyst for an inclusive future characterized by sustainable business and social uplift. Underserved communities have significant potential of entrepreneurship which can be explored by being active part of the ecosystem. This chapter focuses on the need of ecosystem approach for underserved community. The chapter presents an explanation of business ecosystem, identification of key actors and their roles in the ecosystem, and the relationship among various actors. The significance of inclusive future of work and entrepreneurship for the underserved has been highlighted through a case study findings. Furthermore, the chapter presents recommendations for the government, regulators, policymakers, the supporting institutions, small business and entrepreneurs in the underserved, and academicians.
TopBackground
The introductory chapter of the book has defined underserved communities in detail. An underserved community is a community of neglected people who face systemic neglect, racism, and structural barriers. Such a community fails to avail equal economic opportunities compared to their counterparts. Typically an underserved community has more people having low income, more women, tribal groups, and more people of color. Similarly, small businesses/ small entrepreneurs in the underserved communities traditionally face barriers to access credit, capital, and other resources necessary to grow2. Such communities are usually located in rural areas with more people of color, women, low income, and others. Similar to Wang (2021), the underserved community in this chapter is defined through two dimensions. The first dimension covers gender inequality and women-owned businesses; in such a population, the disparities across gender groups adversely affect women’s social, economic, and political advancement through entrepreneurship. Second, it refers to small women entrepreneurs in geographic areas with high unemployment rates, poverty, and lack of resources for entrepreneurship. Therefore, for this chapter, underserved community means the low-income group of the economy, especially women who face barriers in accessing resources like finances, education, health, shelter, etc., because of geographic location, religion, gendered identity, ethnicity, and racial population3. More specifically, it is the population of small women-owned businesses that covers a large proportion of the population in developing economies. Such women are small entrepreneurs who run domestic businesses and are in need of small loans that can help them in either starting or expanding their businesses.
Key Terms in this Chapter
Sustainability: Sustainability refers to the ability of a business to continue over a long period of time.
Supporting Institutions: These are the institutions or organizations which are helping the core functions in an ecosystem.
Financially Under-Served Women-Owned Businesses: These are micro or small level businesses run by women in Under-served community with less or no financial access. These women face barriers to access finance through formal financial institutions.
Under-Served Community: It is a community of marginalized people who are facing barriers in attaining the resources. These people face discrimination on the basis of gender, sex, ethnicity, culture etc. Majority of these include low-income group and more specifically small women-owned businesses.
Microfinance: Refers to provision of financial and non-financial services for the marginalized people who are financially excluded by the formal financial institutions. It includes a wide array of financial and non-financial services for poor.
Business Ecosystem: A network of interconnected actors including suppliers, customers, distributors, government, competitors, and all other stakeholders who are together to create and share collective value.
Collaborations in an Ecosystem: Collaborations means arrangements among various actors of an ecosystem for mutual benefit through flow of resources.