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Reasons for the Almost Complete Absence of High-Growth Ambition and Innovation Activity of Early-Stage Entrepreneurs in Brazil

In: Entrepreneurship and the Industry Life Cycle

Author

Listed:
  • Ronald Jean Degen

    (International School of Management (ISM))

  • Nicholas Harkiolakis

    (University of Liverpool)

Abstract

This multiple case study contributes to identifying the reasons behind the almost complete absence of high-growth ambition and innovation activity of early-stage entrepreneurs in Brazil by investigating why they did not develop similar cognitive frameworks as the countries high-growth entrepreneurs. The understanding of the reasons can assist in the planning of programs and policies directed toward the creation of the necessary conditions to increase the number of early-stage entrepreneurs with high-growth ambition and hence promote the country’s economic growth. The reasons identified by the study were that high self-efficacy in the cognition/personality traits, knowledge (human capital) acquired from family and education complemented by task-related professional knowledge, and social capital that provided support from the professional network based on professional reputation and from family are the key factors in the cognitive framework of high-growth that explains their high-growth ambition and innovation activity are rare in Brazil. These factors are rare in Brazil, particularly the high self-efficacy and knowledge (human capital) acquired from family and education, because only those who belong to the country’s very small well-educated and empowered elite like the high-growth entrepreneurs possess them, whereas most early-stage entrepreneurs in Brazil that don’t belong to this elite did not acquire these key factors in their cognitive frameworks and so don’t have high-growth ambition and develop innovation activities.

Suggested Citation

  • Ronald Jean Degen & Nicholas Harkiolakis, 2018. "Reasons for the Almost Complete Absence of High-Growth Ambition and Innovation Activity of Early-Stage Entrepreneurs in Brazil," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: Serena Cubico & Giuseppe Favretto & João Leitão & Uwe Cantner (ed.), Entrepreneurship and the Industry Life Cycle, pages 247-268, Springer.
  • Handle: RePEc:spr:seschp:978-3-319-89336-5_11
    DOI: 10.1007/978-3-319-89336-5_11
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