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Entrepreneurship and Growth: A Latin American Paradox?

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  • Cristián Larroulet Vignau
  • Couyoumdjian, Juan Pablo

    (School of Business and Economics, Universidad del Desarrollo)

Abstract

In this article, we examine the evolution of entrepreneurship in Latin America as presented in the Global Entrepreneurship Monitor (GEM) studies. These studies present a key set of internationally comparable statistics on entrepreneurship, which have supplied the data for important studies of the role and determinants of entrepreneurship. Here we propose another study along these lines, relating changes in entrepreneurship to changes in economic performance. We obtain an apparently paradoxical result: Latin America has high levels of entrepreneurship, but relatively modest rates of economic growth. Is it possible that, after all, entrepreneurship does not matter much for economic growth? Or is Latin America somehow immune to the beneficial effects of entrepreneurship? We attempt to explain this apparent puzzle.

Suggested Citation

  • Cristián Larroulet Vignau & Couyoumdjian, Juan Pablo, 2009. "Entrepreneurship and Growth: A Latin American Paradox?," Past Working Papers 07, Universidad del Desarrollo, School of Business and Economics, revised 2009.
    • Handle: RePEc:dsr:pastwp:07
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    2. Bonilla, Claudio A. & Cancino, Christian A., 2001. "El impacto del Programa de Capital Semilla del Sercotec en Chile," IDB Publications (Working Papers) 3801, Inter-American Development Bank.
    3. Rusłan Harasym & Jacek Rodzinka & Tomasz Skica, 2017. "The Size of Local Government Administration at a Municipal Level as a Determinant of Entrepreneurship," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 13(2), pages 5-31.
    4. Zoi Pittaki, 2020. "Extending William Baumol’s theory on entrepreneurship and institutions: lessons from post-Second World War Greece," Business History, Taylor & Francis Journals, vol. 62(2), pages 343-363, February.
    5. Bonilla, Claudio A. & Cancino, Christian A., 2011. "The Impact of the Seed Capital Program of SERCOTEC in Chile," IDB Publications (Working Papers) 3824, Inter-American Development Bank.
    6. Claudio A. Bonilla & Christian A. Cancino, 2011. "The Impact of the Seed Capital Program of SERCOTEC in Chile," IDB Publications (Working Papers) 61258, Inter-American Development Bank.
    7. Christian Cancino & Claudio Bonilla & Marcos Vergara, 2016. "The impact of government support programs for the development of businesses in Chile," Serie Working Papers 28, Universidad del Desarrollo, School of Business and Economics.
    8. Mthanti, Thanti & Ojah, Kalu, 2017. "Institutions, Human Capital and Entrepreneurial Orientation (EO): Implications for Growth Strategy," MPRA Paper 89551, University Library of Munich, Germany.
    9. Guzella, Marcelo & Buchbinder, Felipe & Santana, Verônica, 2024. "Venture capital investment in Latin America: The role of experience, distances, and network features," Emerging Markets Review, Elsevier, vol. 60(C).
    10. Pablo Gluzmann & David Jaume & Leonardo Gasparini, 2012. "Decisiones laborales en América Latina: el caso de los emprendedores. Un estudio sobre la base de encuestas de hogares," CEDLAS, Working Papers 0137, CEDLAS, Universidad Nacional de La Plata.
    11. Lai, Wen-Hsiang & Lin, Chiu-Ching, 2015. "Constructing business incubation service capabilities for tenants at post-entrepreneurial phase," Journal of Business Research, Elsevier, vol. 68(11), pages 2285-2289.
    12. Jean P. Sepulveda & Claudio Bonilla, 2014. "Determinants of the Risk Attitude in Entrepreneurship: Evidence from Latin America," Past Working Papers 18, Universidad del Desarrollo, School of Business and Economics.
    13. Couyoumdjian, Juan Pablo, 2012. "Who walks out? Entrepreneurship in a global economy," International Review of Law and Economics, Elsevier, vol. 32(1), pages 158-165.
    14. De Clercq, Dirk & Meuleman, Miguel & Wright, Mike, 2012. "A cross-country investigation of micro-angel investment activity: The roles of new business opportunities and institutions," International Business Review, Elsevier, vol. 21(2), pages 117-129.
    15. Claudio A. Bonilla & Christian A. Cancino, 2001. "El impacto del Programa de Capital Semilla del Sercotec en Chile," IDB Publications (Working Papers) 53658, Inter-American Development Bank.
    16. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.

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