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
Date Written: 2011
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