A comparison between a pre-industrial and modern civilization is already enough to prove that businesses have been very instrumental to curb poverty. Creating more jobs, growing economies, and producing tax receipts needed for re distributive government policy are all strong measures to reduce poverty.

Meanwhile, private businesses account for most of a nation’s tax revenues, and thus embark a very significant contribution in financing public goods including education and better health.

And since developing countries tend to have a single-sided economic structure, it is vital to have a diversified economy in order for businesses to become robust to fluctuations. To achieve a well-diversified economy, small and medium-size businesses play a very crucial role.

But what is exactly the role of businesses in the fight against poverty?

Businesses provide jobs, goods and services to enhance the lives of poor people and help them make their way out of poverty. Among the socially-disadvantaged people, having a steady job is considered as the most significant tool to escape from poverty. A functioning business that practices transformational employment for the poor people is therefore crucial to pull off.

Actually, there’s a lot of ways businesses can take action, from ethical supply chains to technological innovation. Four alternative uses for capital also have something do with it. First, businesses generate income for charitable causes. Second, reduce prices. Third, focus on human capital of their staff. Fourth, employing poor people and giving them proper training and benefits.

Of course, hands-on to the lever of education can also go a long way to fight poverty. Free market capitalism and small businesses have to be unchained from each other in the dynamic mind. Instead of being perceived as something bad or in need of regulation, it’s way better to see businesses as a viable platform to reduce poverty.

The role of businesses in alleviating poverty should never be underestimated. At Greymouse, there’s a clear consensus that our team has a crucial role to play in the fight against poverty. We know we can and we should do more.