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Why do entrepreneurs open tech startups? A comparative study between Brazilian and foreign enterprises

Author

Listed:
  • Sarah Lasso

    (Danmarks Tekniske Universitet)

  • Emerson Mainardes

    (FUCAPE Business School)

  • Fabio Motoki

    (FUCAPE Business School)

Abstract

This research identifies and compares the reasons that lead entrepreneurs to open a startup in Brazil or abroad along six factors: self-realization, financial, independence, innovation, roles, and recognition. Understanding differences between entrepreneurs in distinct settings may help designing better entrepreneurship policies and more effective support for nascent businesses, as well as providing better guidance to investors. Entrepreneurs who own technological startups answered an online questionnaire about the reasons for entrepreneurship through technological startups. Respondents ranked each statement using a Likert scale from (1) completely disagree to (5) completely agree. Of the respondents, 325 were Brazilian and 130 were foreigners. Results show that top-ranked reasons are mostly similar across groups, with four of the top five reasons being common. However, comparatively, they score several reasons differently. These results highlight the different reasons to enterprise between people from different countries, supporting the importance of studying the entrepreneurial phenomenon in emerging economies, which differ substantially from developed ones. They also may help conciliating conflicting results of the reasons to enterprise literature.

Suggested Citation

  • Sarah Lasso & Emerson Mainardes & Fabio Motoki, 2019. "Why do entrepreneurs open tech startups? A comparative study between Brazilian and foreign enterprises," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 233-255, March.
    • Handle: RePEc:spr:intemj:v:15:y:2019:i:1:d:10.1007_s11365-017-0445-8
    DOI: 10.1007/s11365-017-0445-8
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    2. Mendoza, Geovanny & Llopis, Juan & Gasco, Jose & Gonzalez, Reyes, 2021. "Entrepreneurship as seen by entrepreneurs in a developing country," Journal of Business Research, Elsevier, vol. 123(C), pages 547-556.
    3. Venkata Sai Srinivasa Rao Muramalla & Ateeq Mesfer Al-Hazza, 2019. "Entrepreneurial Strategies and Factors Stimulate the Business of Tech Startups," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 360-370, May.
    4. Barbara Del Bosco & Alice Mazzucchelli & Roberto Chierici & Angelo Di Gregorio, 2021. "Innovative startup creation: the effect of local factors and demographic characteristics of entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 145-164, March.

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