Analysis of the factors that influence the probability of entrepreneurship in Ecuador

Authors

DOI:

https://doi.org/10.31637/epsir-2024-824

Keywords:

Entrepreneurial Activity, Global Entrepreneurship Monitor, Entrepreneurial Education, Entrepreneurship, Public politics, Entrepreneurial ecosystem, Financing, Female Entrepreneurship

Abstract

Introduction: This study analyzes the determinants of the probability of entrepreneurship in Ecuador using data from the Global Entrepreneurship Monitor (GEM) 2023-2024. Methodology: Through a binary regression methodology, both logit and probit models, variables such as gender, age, business opportunities, skills, experience, knowledge, fear of failure, perception of ease of starting a business, income level, and educational level are examined. Results: The results reveal that business opportunities, skills, and perception of ease of starting a business are significantly influential factors in the probability of entrepreneurship, while gender, age, and educational level do not show significant influence. Discussions: Additionally, practical implications and study limitations are discussed, and future research directions are proposed. Conclusions: This findings underscore the importance of strengthening entrepreneurial education and public policies that foster a favorable environment for entrepreneurship.

Downloads

Download data is not yet available.

Author Biographies

María Paula Espinosa-Vélez, Universidad Técnica Particular de Loja

Master in Strategic Business Administration by CENTRUM PUCP, Master in Telecommunications Management in Business by UPM Madrid, Master in Leadership by EADA Business School. Specialization in Management and University Leadership IGLU and Specialization in Digital Transformation, EOI. Engineer in Computer Systems and Computing at UTPL. Director of the Academic Unit EDES, UTPL Business School and professor of the MBA with mention in innovation and the Master in Digital Business. Director of the Global Entrepreneurship Monitor (GEM Ecuador). Researches on entrepreneurship, business education and digital transformation.

María Dolores Mahauad Burneo, Universidad Técnica Particular de Loja

Master in Evaluation, Management and Direction of Educational Quality at the University of Seville - Spain. Professor at the Universidad Técnica Particular de Loja, in the Career of Business Administration of the Department of Business Sciences. Coordinator of the Chair of Innovation and Entrepreneurship at UTPL and member of the research group of Innovation and Entrepreneurship. Professional Certificate: Professor in Entrepreneurship and Innovation by doinGlobal™ and the University of Salamanca (Spain).

Tania Marcela Rojas Rojas, Universidad Técnica Particular de Loja

Commercial Engineer from the National University of Loja, Ecuador (2008) and Master in Management and Administration of Human Talent from UNIR, Spain (2018). Currently, she teaches at EDES Business School, Universidad Técnica Particular de Loja, Ecuador. Since January 2022, she is Director of the Master's Program in Human Talent Management with mention in Management 3.0. Her research interests focus on pedagogical innovation and data analytics applied to human talent. She has directed six master's theses and is the author of four articles indexed in databases.

References

Ahmed, M. S. (2016). Challenges facing Women entrepreneurship among the Swahili community in Mvita constituency in Mombasa county, coastal Kenya [Doctoral dissertation, University of Nairobi]. Repositorio institucional UoN. http://hdl.handle.net/11295/100181

Aidis, R., Estrin, S. y Mickiewicz, T. (2008). Institutions and entrepreneurship development in Russia: A comparative perspective. Journal of business Venturing, 23(6), 656-672.

https://doi.org/10.1016/j.jbusvent.2008.01.005 DOI: https://doi.org/10.1016/j.jbusvent.2008.01.005

Arenius, P. y Minniti, M. (2005). Perceptual variables and nascent entrepreneurship. Small business economics, 24, 233-247. https://doi.org/10.1007/s11187-005-1984-x DOI: https://doi.org/10.1007/s11187-005-1984-x

Becker, G. S. (1964). Human capital. New York: National Bureau of Economic Research. https://www.nber.org/system/files/chapters/c3730/c3730.pdf

Bjørnskov, C. y Foss, N. J. (2016). Institutions, entrepreneurship, and economic growth: what do we know and what do we still need to know?. Academy of Management Perspectives, 30(3), 292-315. https://doi.org/10.5465/amp.2015.0135 DOI: https://doi.org/10.5465/amp.2015.0135

Boettke, P. J. y Coyne, C. J. (2009). Context matters: Institutions and entrepreneurship. Foundations and Trends in Entrepreneurship, 5(3), 135-209. http://dx.doi.org/10.1561/0300000018 DOI: https://doi.org/10.1561/0300000018

Bosma, N. S. y Levie, J. (2010). Global Entrepreneurship Monitor 2009 Executive Report. https://www.gemconsortium.org/report/gem-2009-global-report

Bosma, N., Content, J., Sanders, M. y Stam, E. (2018). Institutions, entrepreneurship, and economic growth in Europe. Small Business Economics, 51, 483-499. https://doi.org/10.1007/s11187-018-0012-x DOI: https://doi.org/10.1007/s11187-018-0012-x

Bruton, G. D., Ahlstrom, D. y Li, H. L. (2010). Institutional theory and entrepreneurship: where are we now and where do we need to move in the future?. Entrepreneurship theory and practice, 34(3), 421-440. https://doi.org/10.1111/j.1540-6520.2010.00390.x DOI: https://doi.org/10.1111/j.1540-6520.2010.00390.x

Carter, N. M., Gartner, W. B., Shaver, K. G. y Gatewood, E. J. (2003). The career reasons of nascent entrepreneurs. Journal of business venturing, 18(1), 13-39. https://doi.org/10.1016/S0883-9026(02)00078-2 DOI: https://doi.org/10.1016/S0883-9026(02)00078-2

Davidsson, P. y Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of business venturing, 18(3), 301-331. https://doi.org/10.1016/S0883-9026(02)00097-6Get rights and content DOI: https://doi.org/10.1016/S0883-9026(02)00097-6

Davidsson, P., Recker, J. y Von Briel, F. (2020). External enablement of new venture creation: A framework. Academy of Management Perspectives, 34(3), 311-332. https://doi.org/10.5465/amp.2017.0163 DOI: https://doi.org/10.5465/amp.2017.0163

Fairlie, R. W. (2005). Entrepreneurship and earnings among young adults from disadvantaged families. Small Business Economics, 25, 223-236. https://doi.org/10.1007/s11187-003-6457-5 DOI: https://doi.org/10.1007/s11187-003-6457-5

Foo, H. Y. y Turner, J. J. (2019). Entrepreneurial learning’-the role of university led business incubators and mentors in equipping graduates with the necessary skills set for Industry 4.0. International Journal of Education, Psychology and Counseling, 4(30),283-298.

bit.ly/4eVKuzQ

GEM (Global Entrepreneurship Monitor) (2023). Global Entrepreneurship Monitor 2023/2024 Global Report: 25 Years and Growing. London: GEM https://acortar.link/X7mYOE

Gielnik, M. M., Zacher, H. y Wang, M. (2018). Age in the entrepreneurial process: The role of future time perspective and prior entrepreneurial experience. Journal of Applied Psychology, 103(10), 1067. https://doi.org/10.1037/apl0000322 DOI: https://doi.org/10.1037/apl0000322

Guerrero, M., Cunningham, J. A. y Urbano, D. (2015). Economic impact of entrepreneurial universities’ activities: An exploratory study of the United Kingdom. Research policy, 44(3), 748-764. https://doi.org/10.1016/j.respol.2014.10.008 DOI: https://doi.org/10.1016/j.respol.2014.10.008

Hatala, J. P. (2005). Identifying barriers to self‐employment: the development and validation of the barriers to entrepreneurship success tool. Performance Improvement Quarterly, 18(4), 50-70. https://doi.org/10.1111/j.1937-8327.2005.tb00350.x DOI: https://doi.org/10.1111/j.1937-8327.2005.tb00350.x

Hisrich, R. D. (1990). Entrepreneurship/intrapreneurship. American psychologist, 45(2), 209. https://psycnet.apa.org/doi/10.1037/0003-066X.45.2.209 DOI: https://doi.org/10.1037//0003-066X.45.2.209

Huang, L., Bai, X., Huang, L., Huang, Y. y Han, G. (2023). How does college students’ entrepreneurial learning influence entrepreneurial intention: Evidence from China. Sustainability, 15(12), https://doi.org/10.3390/su15129301 DOI: https://doi.org/10.3390/su15129301

Hughes, M., Ireland, R. D. y Morgan, R. E. (2007). Stimulating dynamic value: Social capital and business incubation as a pathway to competitive success. Long Range Planning, 40(2), 154-177. https://doi.org/10.1016/j.lrp.2007.03.008 DOI: https://doi.org/10.1016/j.lrp.2007.03.008

Inkinen, H. T., Kianto, A. y Vanhala, M. (2015). Knowledge management practices and innovation performance in Finland. Baltic Journal of Management, 10(4), 432-455. https://doi.org/10.1108/BJM-10-2014-0178 DOI: https://doi.org/10.1108/BJM-10-2014-0178

Kolb, A. Y. y Kolb, D. A. (2009). Experiential learning theory: A dynamic, holistic approach to management learning, education and development. The SAGE handbook of management learning, education and development, 7(2), 42-68. https://acortar.link/KVgMzx DOI: https://doi.org/10.4135/9780857021038.n3

Liñán, F. y Fernández-Serrano, J. (2014). National culture, entrepreneurship and economic development: different patterns across the European Union. Small business economics, 42, 685-701. https://doi.org/10.1007/s11187-013-9520-x DOI: https://doi.org/10.1007/s11187-013-9520-x

Martin, B. C., McNally, J. J. y Kay, M. J. (2013). Examining the formation of human capital in entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of bussiness venturing, 28(2), 211-224. https://doi.org/10.1016/j.jbusvent.2012.03.002 DOI: https://doi.org/10.1016/j.jbusvent.2012.03.002

Minniti, M. y Lévesque, M. (2010). Entrepreneurial types and economic growth. Journal of Business Venturing, 25(3), 305-314. https://doi.org/10.1016/j.jbusvent.2008.10.002 DOI: https://doi.org/10.1016/j.jbusvent.2008.10.002

Mitchell, J. R. y Shepherd, D. A. (2011). Afraid of opportunity: The effects of fear of failure on entrepreneurial action. Frontiers of Entrepreneurship Research, 31(6), 1. https://acortar.link/rggFv7

North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge university press. https://doi.org/10.1017/CBO9780511808678 DOI: https://doi.org/10.1017/CBO9780511808678

North, D. C. (2005). Understanding the Process of Economic Change. Princeton University Press. http://www.jstor.org/stable/j.ctt7zvbxt DOI: https://doi.org/10.1515/9781400829484

Nsengimana, S. (2017). Challenges to women entrepreneurship in Kigali, Rwanda (Doctoral dissertation, Cape Peninsula University of Technology). https://etd.cput.ac.za/handle/20.500.11838/2589

Ozgen, E. y Baron, R. A. (2007). Social sources of information in opportunity recognition: Effects of mentors, industry networks, and professional forums. Journal of business venturing, 22(2), 174-192. https://doi.org/10.1016/j.jbusvent.2005.12.001 DOI: https://doi.org/10.1016/j.jbusvent.2005.12.001

Ployhart, R. E., y Moliterno, T. P. (2011). Emergence of the human capital resource: A multilevel model. Academy of management review, 36(1), 127-150. https://doi.org/10.5465/amr.2009.0318 DOI: https://doi.org/10.5465/amr.2009.0318

StataCorp (2023). Stata 18. Statistical software. StataCorp LLC.

Tanveer, M., Ali, H. y Haq, I. U. (2021). Educational entrepreneurship policy challenges and recommendations for Pakistani universities. Academy of Strategic Management Journal, 20(2), 1-15. https://n9.cl/es/s/w3av4

Unger, J. M., Rauch, A., Frese, M. y Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of business venturing, 26(3), 341-358. https://doi.org/10.1016/j.jbusvent.2009.09.004 DOI: https://doi.org/10.1016/j.jbusvent.2009.09.004

Urbano, D. y Aparicio, S. (2016). Entrepreneurship capital types and economic growth: International evidence. Technological forecasting and social change, 102, 34-44. https://doi.org/10.1016/j.techfore.2015.02.018 DOI: https://doi.org/10.1016/j.techfore.2015.02.018

Urbano, D., Audretsch, D., Aparicio, S., y Noguera, M. (2020). Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment. International Entrepreneurship and Management Journal, 16(3), 1065-1099. https://doi.org/10.1007/s11365-019-00621-5 DOI: https://doi.org/10.1007/s11365-019-00621-5

Published

2024-09-19

How to Cite

Espinosa-Vélez, M. P., Mahauad Burneo, M. D., & Rojas Rojas, T. M. (2024). Analysis of the factors that influence the probability of entrepreneurship in Ecuador . European Public & Social Innovation Review, 9, 1–17. https://doi.org/10.31637/epsir-2024-824

Issue

Section

Innovation