Analysis of economic growth through the context conditions that allow entrepreneurship

Abstract

The literature that recognizes the entrepreneurial function as a fundamental factor in regions’ and countries’ growth abounds. When studying the macroeconomic conditions that favor entrepreneurship, most studies analyze the problem from an organizational level. This article assumes the value of entrepreneurship as a mediating element in economic growth. It analyzes the most relevant legal and macroeconomic conditions that improve the suitable adjustment of entrepreneurial initiatives to the demands and available resources of a given economy. These conditions are not analyzed strictly from an economic perspective but in terms of their impact on the entrepreneurial function. To validate our hypotheses, a qualitative methodology focused on Latin American countries is used to reduce the heterogeneity of the cultural and historical context of the studied cases. The results reveal that low or moderate inflation, together with investment freedom and low tax burden, are the most determining factors of economic growth in Latin America.