An assistant professor at The University of New Mexico's Anderson School of Management, Xaver Neumeyer, has conducted research on the processes employed by economically disadvantaged entrepreneurs and their use of technology. Through his study, Neumeyer aims to gain a deeper understanding of how these entrepreneurs manage and grow their businesses, as well as their impact on their communities.
According to Neumeyer, these entrepreneurs, despite facing economic challenges, contribute significantly to their communities by creating job opportunities and providing essential services. He states, "In today's dynamic business environment, entrepreneurs find themselves in a unique position with the amount of technological resources to help grow their business."
In his research article titled "The Technologization of Entrepreneurial Processes: A Poverty Perspective," published in IEEE Transactions on Engineering Management, Neumeyer and his co-author, Dr. Susana Santos, leverage interviews from disadvantaged entrepreneurs in a rural town outside Lisbon, Portugal. They found that these entrepreneurs often establish businesses based on their own personal labor, such as handyman work, delivery services, cleaning, or landscaping.
From these interviews, Neumeyer and Santos identified four categories of how low-income entrepreneurs use technology in their ventures. The first category involves assessing and planning how to acquire resources for the business. For example, an entrepreneur may buy a bike from a neighbor to assist with a delivery service. The second category entails understanding the capabilities and scope of technology within the business. In this step, the entrepreneur may consider how long the bike will last and begin researching and saving to purchase a car.
The third category focuses on the entrepreneur's ability to innovate and improve by seeking training or creatively using their available tools and equipment differently. Lastly, the fourth category emphasizes community building to establish a customer base and foster growth within the community.
The interviews revealed that these business owners with limited funding often find innovative solutions based on personal connections and resources. If they need to expand their technology, such as buying a new vehicle for deliveries, they typically rely on borrowing or trading with family members or close friends in their community.
Neumeyer emphasizes that technology offers numerous advantages for entrepreneurs and small-business owners, but it also comes with concealed expenses and obligations. He advises business owners to understand the benefits and challenges of each technology, including potential hidden fees and company dependencies that may arise in the future.
While adopting new technology is crucial for business growth, disadvantaged entrepreneurs face challenges in terms of access to computers, the internet, and training to effectively use modern digital technology. Neumeyer suggests looking to local libraries and community centers as valuable resources for ongoing hands-on training workshops and assistance in setting up email and social media accounts.
Ultimately, Neumeyer believes that successful technology adoption requires a balance between the long-term goals of the business and the capabilities of new digital technologies. He states, "It is important that the entrepreneur controls the technology instead of the other way around."
Xaver Neumeyer, an assistant professor of finance and innovation at The University of New Mexico Anderson School of Management, focuses his research on entrepreneurship, technology management, and innovation, particularly in relation to those in poverty.
The Anderson School of Management offers a wide range of concentrations at the bachelor's and master's levels and is accredited by the Association to Advance Collegiate Schools of Business, placing it in the top 20% of business schools in the nation.
