Innovation science and technologiy Том 2 № 6 (2026)
MECHANISMS FOR POVERTY REDUCTION THROUGH THE DEVELOPMENT OF SMALL BUSINESS AND FAMILY ENTREPRENEURSHIP IN THE SERVICE SECTOR
Dauletmuratov, Adilbay
Аннотация
This study examines mechanisms for reducing poverty through the development of small businesses andfamily entrepreneurship in the service sector. The service sector plays an important role in increasing household incomes,creating employment opportunities, and promoting inclusive economic growth due to its relatively low capital requirementsand high labor intensity. Based on theoretical analysis and empirical observations, the study develops a conceptualmodel explaining the relationship between access to resources, entrepreneurial activity, employment generation, incomeformation, social welfare improvement, and poverty reduction.The study identifies six interrelated stages of the poverty reduction mechanism: expanding access to resources,establishing entrepreneurial activities, increasing employment, generating and stabilizing incomes, improving socialwelfare, and reducing poverty levels. Furthermore, the research highlights the importance of institutional support,digitalization, human capital development, and market infrastructure as external factors influencing the effectiveness ofthe proposed model.The findings indicate that strengthening small businesses and family entrepreneurship in the service sector can serveas an effective instrument for sustainable poverty reduction and regional socio-economic development. The proposedmodel may be applied in designing regional development policies and poverty alleviation programs, particularly indeveloping economies.
service sector; poverty reduction; small business; family entrepreneurship; employment generation; income growth; social welfare; regional development; digitalization; human capital; institutional support; market infrastructure.
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