Social Entrepreneurship as an Instrument of Poverty Abatement: An Application on Mexican Microenterprises

Abstract

We analyze the importance of social entrepreneurship as a mechanism of compensation and also as a way to abate poverty in zones of high margination and elevated social backwardness in Mexico. We perform an analysis of poverty behavior, as well of the impact of the programs that have been designed to abolish it. Additionally, an estimate of the social profitability of 394 micro enterprises located in marginated zones in the city of Tijuana (Mexico) is made through a cost-benefit analysis (CBA) that incorporate the social net present value criterion. The results are compared with the multidimensional poverty indicators, to evaluate if the entrepreneurship of social micro enterprises has a significant social impact, which could help to offset the social backwardness and poverty in these marginated zones.