The contrasting role of government and NGO support towards the entrepreneurs at base of pyramid and effect on subjective wellbeing

Abstract

There are disagreements surrounding the role of government and non-government organizations (NGOs) on the micro-entrepreneurship business success particularly in the developing countries. Thus, this article aims to delve into the role of government and NGO in ensuring entrepreneurial business success. In addition, the study attempts to explore the impact of financial and non-financial performance on the subjective wellbeing of base of the pyramid (BoP) entrepreneurs in Bangladesh. From cross-sectional empirical study with structured questionnaire, data were examined by structural equation modeling (PLS-SEM). The result of this study indicates the role of government organizations in developing countries are still not instrumental in the market-based approach for societal development. Rather, NGOs play vital role in achieving the business success (financial and non-financial performance) of the micro-entrepreneurs through providing required supports. In addition, financial and non-financial performances were found to be strong predictors for subjective wellbeing for the micro-entrepreneurs. The study implicates that the notion of institutional theory can be associated with the capability approach theory. Government and NGOs would likely to consider these results in their policy making and extend support to BoP micro-entrepreneurs more efficiently and effectively to contribute to the poverty eradication movement.