The two roles that the private sector can play in poverty alleviation are the creation of jobs as well as bettering education.
Many individuals see the government as the sole body that helps those in poverty find a way out of their current situation. However, the private sector can play a role in poverty alleviation as well. Here are two ways it can do just this:
Job creation: Job creation provides great opportunity for those living in poverty. According to Assessing Private Sector Contributions to Job Creation and Poverty Reduction: An IFC Open Source Study, “Job creation is critical to transition out of the vicious cycle of poverty. Job creation is often the result of a robust private sector and a key ingredient for economic growth and poverty reduction.” They claim that this provides a way out of poverty either through gaining a job or self-employment. A strong private sector also boosts the economy and helps individuals gain more skills.
Bettering education: Education is a great portal one can use to find their way out of poverty. It can provide a future of job opportunities and employment that will lift committed individuals into a new life. The private sector can contribute to bettering education by providing more resources through various methods. It can contribute to the available financial resources for education and therefore be an additional resource beyond simply the state itself. It can also assist governments with the demand for schooling, which is quite large in many countries around the world.