Study investigates technological entrepreneurship in low-income communities in Brazil

In recent years, international development projects have sought to stimulate technological entrepreneurship in low-income communities as a way of alleviating poverty. In Brazil, the “Digital Port” technology hub in Recife has developed a “Reframing Project” to provide training to creative economy entrepreneurs in underprivileged communities. Researchers Ely Laureano Paiva of FGV EAESP and Marcos Primo of Pernambuco Federal University investigated how these training resources can impact business development in these communities, highlighting the challenges and achievements of this initiative.

Their study, published in Technological Forecasting and Social Change, focuses on the Reframing Project’s impact on four low-income communities in Brazil. The researchers used the participant observation methodology, interviews with team leaders and project coordinators, and document analysis. The aim was to understand how a technology hub’s resources can foster entrepreneurship in low-income communities.

It was found that the key factor determining the success of certain groups was technological literacy. Other groups, especially those without basic business and technology skills, faced additional difficulties. During the three phases of the project – entrepreneurial awareness raising, early-stage development, and incubation – the participants needed not only access to resources, but also support to use them effectively.

The researchers highlighted the entrepreneurial awareness stage as a key resource. It aims to enhance participants’ self-esteem and confidence and is essential for engagement in the hub’s activities. In addition, groups that already had some degree of technological literacy were able to progress more quickly, demonstrating that prior training has a direct impact on results.

Another significant finding is that teamwork was one of the main mechanisms for participants to develop their entrepreneurial ideas. Accordingly, collaboration between community members enabled opportunities to be identified and startups to be developed during the incubation process.

In conclusion, the study stresses that in order to achieve success in technological entrepreneurship initiatives in low-income communities, a set of actions structured over time is necessary. This includes consistent training, ongoing support and adapting resources to the specific needs of entrepreneurs at different project stages.

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