Quantifying the relationship between entrepreneurship and competitiveness development stages in Latin America

By José Ernesto Amorós, Cristóbal Torres Fernández, Juan Tapia. The International Entrepreneurship and Management Journal, 2011

137 citations recorded by the source corpus.

This research aims to quantify the importance of a country’s entrepreneurship level in terms of its competitiveness rates. Our hypothesis is that those countries entrepreneurship growth rates increase their competitiveness indicators and that this entrepreneurial improvement could be a key factor in reaching the next stage of development. We establish this relationship using a longitudinal database of Latin American countries that participated in the Global Entrepreneurship Monitor (GEM) and the Global Competitiveness Reports of the World Economic Forum (WEF) from 2001 to 2006. GEM and WEF construct aggregated indexes using several variables to rate each country’s entrepreneurship activity and competitiveness development. We use a discriminant analysis to identify various countries’ competitiveness subgroups and show how each country’s entrepreneurship rates have weight in different stages of competitiveness, placing a special emphasis on Latin America. Our results suggest that Latin American countries need to gain entrepreneurial dynamics and economic (and competitiveness) development by transforming their typical self-employment or low value-added new ventures for local markets into strong, innovative networked firms competing globally. Some management and policy implications are also discussed.

Subfields: Economics and Econometrics, Management of Technology and Innovation, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b53c600d94ea876278e6c1ec609237bca77ea592

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Citations in the corpus

Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned? (2019, background): “Although authors such as Amorós et al. (2012) and Terjesen and Amorós (2010) relate institutions to the stage of economic development in order to explain entrepreneurial activity in emerging economies, they still leave space to keep exploring the differentiated impact of institutions on…”
The role of entrepreneurship in stimulating economic growth in developed and developing countries (2018, result): “These findings support previous research which suggests that entrepreneurship matters for economic growth (Ács, 2006; Ács & Naudé, 2011; Amorós et al., 2012; Baumol & Strom, 2007; Hessels & Van Stel, 2011; Minniti & Lévesque, 2010; Olaison & Meier Sørensen, 2014; Stam & Van Stel, 2011; Van Praag & V”