Environmental Factors and Entrepreneurial Activity in Latin America

Alvarez, Claudia; Urbano, David

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Environmental Factors and Entrepreneurial Activity in Latin America

Academia Revista Latinoamericana de Administración, Vol. 48, pp. 126-139

15 Pages Posted: 20 Dec 2011 Last revised: 22 Apr 2012

See all articles by Claudia Alvarez

Claudia Alvarez

Universidad EAFIT; Autonomous University of Barcelona

David Urbano

Autonomous University of Barcelona

Date Written: 2011

Abstract

The main purpose of this paper is to analyze the influence of environmental factors on entrepreneurial activity, focusing on Latin America, and using the institutional approach as theoretical framework. Through a panel data model with information from the Global Entrepreneurship Monitor and Doin Business, we demonstrate that informal institutions, such as political stability, control of corruption and role models are related to the entrepreneurial activity. Likewise, contrary to the expected results, formal institutions, such as procedures and time for starting a new business, and business and entrepreneurial skills, do not have a significant influence on entrepreneurship in Latin American countries.

Keywords: Entrepreneurship, entrepreneurial activity, institutional economics, Global Entrepreneurship Monitor (GEM), Latin America

JEL Classification: L26, M13

Suggested Citation: Suggested Citation

Alvarez, Claudia and Urbano, David, Environmental Factors and Entrepreneurial Activity in Latin America (2011). Academia Revista Latinoamericana de Administración, Vol. 48, pp. 126-139, Available at SSRN: https://ssrn.com/abstract=1974138