Analysis of determining factors of entrepreneurship in chile and colombia

Abstract

Entrepreneurial activity is an engine for the development and growth of economies given its contribution to job creation, innovation, diversification of productive activity and social mobility. It is important to identify the factors that allow the emergence of entrepreneurs. The objective of the study is to compare early-stage entrepreneurial activity for Chile and Colombia using data from the Global Entrepreneurship Monitor. A descriptive statistical analysis and a logistic model were carried out, through which it was possible to determine differences and similarities of the entrepreneurial profile and the variables that explain the initial entrepreneurial activity rate and its predictive effect. The results show that entrepreneurs in Chile and Colombia are similar: mostly men seeking a business opportunity between the ages of 25 and 44, have higher education and have high incomes. The initial entrepreneurial activity is explained from: fear of failure (negative effect), knowing entrepreneurs and possessing skills. In Chile, the probabilities of joining the initial entrepreneurial activity are quite stable and in Colombia the variables of knowing entrepreneurs and having skills have been losing relevance as predictors of entrepreneurship.