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Purpose

The purpose of this paper is to fill a gap in research into the small enterprise environment of the Bolivian prison, and to examine that environment and its possible value in prisoner rehabilitation.

Design/methodology/approach

To provide a first‐hand analysis of small business enterprises in the Bolivian prison, the author's experience of working in that context is used as field research material and provides the basis for a discussion of necessity‐based entrepreneurship in that unique context.

Findings

The paper provides a detailed description of the Bolivian prison's social organisation. It evaluates that structure as a unique environment distinguished from both other penal systems and other settings for necessity‐based small enterprise. The paper then discusses Bolivia's low recidivism rates, and draws the conclusion that the necessity for small enterprise activity in the Bolivian prison could have the unintended result of providing a successful prisoner rehabilitation mechanism.

Research limitations/implications

Due to lack of governmental resources, the collection of recidivism data in Bolivia is extremely difficult. Future research into data collection methods in the Bolivian prison will be useful.

Originality/value

This is the first known study of the Bolivian prison as an environment that both necessitates and fosters entrepreneurial activity. It encourages the field of entrepreneurship and small business enterprise to think openly about possible contexts and benefits of successful entrepreneurial ventures.

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