Using Household Living Aid for Entrepreneurship: What Does the B40 Think?

Abstract

Cash transfers like household living aid given to the poor are initially for the recipients to fulfil their necessities. However, previous studies found that cash assistance can lift the household's income by influencing self-employment and entrepreneurial activities. Thus, this study addresses the participation of the poor in entrepreneurship and unravels their perception of the entrepreneurship model using household living aid. Specifically, this qualitative study examines household living aid usage for entrepreneurship. Seven household living aid recipients and ten microentrepreneurs were interviewed using semi-structured interviews. From the analysis, most recipients believe that household living aid can be utilised for entrepreneurship. Six themes that confirm and disconfirm the propositions were identified. Even though the findings are varied, the potential use of household living aid for entrepreneurship is optimistic. The results can guide policymakers, financial institutions, and entrepreneurial training agencies in catering to the needs of the niche group. Ultimately, the bottom 40 group could benefit from this policy and assistance, while the government could enjoy the return on investment (ROI) in employment and reduce poverty among citizens. Implications for both research and practice are discussed.