Search results

In 2019, Brazil had approximately 53.4 million entrepreneurs, of which 60.2% were start-ups. The contingent of nascent entrepreneurs was 11.1 million people and in just one year it grew 390%, a fact that can be explained, on the one hand, by the beginning of the economic recovery of the country which, although timid, began arousing with the gross domestic product closing the year 2019 with growth of 1.1%, and on the other hand, by the slow cooling of the national unemployment rate that reached 11.0% in the last quarter of 2019 (IBGE, 2019). Women have been occupying an important space in the country's entrepreneurial activities, with an initial specific rate of entrepreneurship (total early-stage entrepreneurial activity (TEA)) of 23.1%, similar to that of men, and established specific rates of entrepreneurship (total establishing entrepreneurial activity (TEE)) of 13.9% (GEM, 2019). Despite the enthusiasm brought by the numbers, it is necessary to pay attention to what are the entrepreneurial activities performed by these women, since in a country like Brazil, transformations brought by innovative thoughts, technological development, and expansion of education are not privileges of the entire population. Besides the differences between genders, even among women, the impact of changes in society occurs in different ways, and the “pure” concept of entrepreneurship, associated with innovation and the creation of new products and services, is valid for only a portion of them, leaving to others the broader concept related to creativity, risk, use of available resources, and economic sustainability in a context where individual characteristics and unfavorable structural conditions are intertwined (Haas, 2013). In this sense, the objective of this work is to present the national reality of female entrepreneurship, contributing with the understanding of who are the Brazilian women entrepreneurs that correspond to these “pure” and broad concepts and, therefore, shed light on new studies and research that can contribute with more accurate diagnoses about these women.

This chapter studies the effect of increasing formality via tax reduction and simplification schemes on micro-firm performance. We develop a simple theoretical model that yields two intuitive results. First, low- and high-ability entrepreneurs are unlikely to be affected by a tax reduction and therefore, the reduction has an impact only on a segment of the micro-firm population. Second, the benefits to such reduction, as measured by profits and revenues, are increasing in the entrepreneur's ability. Then, we estimate the effect of formality on the entire conditional distribution (quantiles) of revenues using the 1996 Brazilian SIMPLES program and a rich survey of formal and informal micro-firms. The econometric approach compares eligible and non-eligible firms, born before and after SIMPLES in a local interval about the introduction of SIMPLES. We develop an estimator that combines both quantile regression and the regression discontinuity design. The econometric results corroborate the positive effect of formality on micro-firms’ performance and produce a clear characterization of who benefits from these programs.

This study aims to define a business school model of social responsibility (SR) and sustainability and describe how the implementation of this model impacts on small- and mid-sized enterprises (SME) and stakeholders in the chain.

The model was built based on a conceptual analysis about the literary and documentary review in recognized databases of scientific publications and models of SR, accreditations and impact and quality report systems of business schools. The implementation of the model was based on a project that involved Peruvian SME. Data were collected through surveys administered to the study population. The results were confirmed through in-depth interviews. Analytical-synthetic, inductive-deductive-analytical methods were used to present the SR model.

This model focused on the Sustainable Development Goals (SDGs), partnerships and solved relevant social and economic problems. It also allowed the growth of the micro entrepreneur, the family, the company, the society and other stakeholders in the chain.

The model was validated in one business school but generated more results than the expected. It is recommended to replicate it in other organizations. It has been developed in pandemic and post-pandemic situations.

The model was based on many impact models that considered the SDGs and relevant alliance generation that involved stakeholders in the chain. It also contributed to the development of entrepreneurs and the society.

The model benefited people, society and companies. The program aimed to train and formalize entrepreneurs and generate social and economic development.

This study allowed moving from theory to practice in topics of SR and sustainability. The main original aspect is that the model was based on the Unión de Responsabilidad Social Universitaria Latino Americana model; the Business Graduates Association, European Quality Improvement System, Business school Impact System, Global Reporting Initiative standards, the Responsible Business Conduct and the SDGs.

The purpose of this study is to investigate the role of sales, as a proxy for size, in moderating the impact of institutional incongruence between formal and informal institutions on the formalization of microenterprises in middle-income countries in Latin America.

The paper uses a probit regression model to examine business formalization as a binary outcome of formal and informal institutions. Data was collected through interviews and surveys across 52 municipalities in the Metropolitan Region of Santiago, Chile. The study used a stratified sampling approach and was conducted between November 2022 and January 2023.

The results offer three key insights into the formalization of microenterprises in middle-income countries. First, we show that formal institutions do not significantly influence formalization decisions among microentrepreneurs in middle-income countries, challenging the traditional belief that formal institutions alone significantly influence formalization in these contexts. Second, we show that informal institutions are significant predictors of informality, especially among smaller microenterprises. Third, we highlight that the smaller the business, the stronger the negative effect of informal institutions on formalization, and thus, the institutional incongruence between formal and informal institutions decreases for larger businesses.

This paper contributes to management literature by shedding light on the drivers of formalization in middle-income countries, a departure from most formalization studies wherein the focus is primarily on low-income economies. The findings suggest that policymakers in middle-income countries should focus on enabling microenterprise growth through sales, rather than targeting specific demographic groups or relying solely on formal institutional enforcement to promote formalization.

El objetivo de este estudio es investigar el papel de las ventas, utilizadas como un indicador de tamaño, en la mediación del impacto de la incongruencia institucional entre instituciones formales e informales en la formalización de microempresas en países de ingresos medios en América Latina.

Utilizamos un modelo de regresión Probit para examinar la formalización empresarial como un resultado binario de instituciones formales e informales. Los datos se recopilaron a través de 110 entrevistas y encuestas en 52 municipios de la Región Metropolitana de Santiago, Chile. El estudio empleó un enfoque de muestreo estratificado y se llevó a cabo entre noviembre de 2022 y enero de 2023.

Nuestros resultados ofrecen tres ideas clave sobre la formalización de microempresas en países de ingresos medios. Primero, demostramos que las instituciones formales no influyen significativamente en las decisiones de formalización entre las microempresas en países de ingresos medios; esto desafía la creencia tradicional de que las instituciones formales por sí solas influyen significativamente en la formalización en estos contextos. Segundo, nuestro estudio muestra que las instituciones informales son predictores significativos de la informalidad, especialmente entre las microempresas más pequeñas. Tercero, nuestro estudio destaca que el efecto negativo de las instituciones informales sobre la formalización es más fuerte para negocios de menor tamaño; por lo tanto, la incongruencia institucional entre instituciones formales e informales disminuye para negocios de mayor tamaño.

Este artículo contribuye a la literatura iluminando sobre los impulsores de la formalización en países de ingresos medios, a diferencia de la mayoría de los estudios de formalización en la región latinoamericana que se centran principalmente en países de bajos ingresos. Nuestros hallazgos sugieren que los responsables de políticas en países de ingresos medios deberían centrarse en impulsar el crecimiento de las microempresas a través de las ventas, en lugar de enfocarse en grupos demográficos específicos o depender únicamente del cumplimiento institucional formal para promover la formalización.

O objetivo deste estudo é investigar o papel das vendas, usadas como um indicador de tamanho, na mediação do impacto da incongruência institucional entre instituições formais e informais na formalização de microempresas em países de renda média na América Latina.

Utilizamos um modelo de regressão Probit para examinar a formalização empresarial como um resultado binário de instituições formais e informais. Os dados foram coletados por meio de 110 entrevistas e pesquisas em 52 municípios da Região Metropolitana de Santiago, Chile. O estudo empregou uma abordagem de amostragem estratificada e foi realizado entre novembro de 2022 e janeiro de 2023.

Nossos resultados oferecem três ideias-chave sobre a formalização de microempresas em países de renda média. Primeiro, demonstramos que as instituições formais não influenciam significativamente as decisões de formalização entre as microempresas em países de renda média; isso desafia a crença tradicional de que as instituições formais, por si só, influenciam significativamente a formalização nesses contextos. Segundo, nosso estudo mostra que as instituições informais são preditores significativos da informalidade, especialmente entre as microempresas menores. Terceiro, nosso estudo destaca que o efeito negativo das instituições informais sobre a formalização é mais forte para negócios de menor porte; portanto, a incongruência institucional entre instituições formais e informais diminui para negócios de maior porte.

Este artigo contribui para a literatura iluminando os impulsionadores da formalização em países de renda média, ao contrário da maioria dos estudos de formalização na região latino-americana, que se concentram principalmente em países de baixa renda. Nossos achados sugerem que os responsáveis pelas políticas em países de renda média deveriam focar em impulsionar o crescimento das microempresas por meio das vendas, em vez de se concentrar em grupos demográficos específicos ou depender exclusivamente do cumprimento institucional formal para promover a formalização.

Motivations and access to resources for venturing differ between men and women. In developing countries, there has been an increase in businesses that do not have a specific location and persist in informality. This research aimed to evaluate, from a gender perspective, the moderating effect of the decision not to have a place in the relationship between human capital (education, experience and type of entrepreneurship) and business informality.

Using the National Household Survey 2014–2018, a sample of 50,313 Peruvian entrepreneurs was obtained − 23,314 women and 27,002 men – who have been in business for over three years. The data were analysed with logistic regression.

The results showed a moderating effect of entrepreneurship without a settled location on the relationship between education and informality in the case of women. And, for men, the moderating impact falls on the education, experience and reason for venturing that influences the formality of their businesses.

The problem of business informality of established companies with more than 42 months of operation is analysed. The moderating effect of the decision not to have a specific location on the relationship between human capital and informality is explored. This work extends business informality studies in Latin America developing countries, incorporating a gender perspective.

Las motivaciones y el acceso a recursos para emprender son diferentes entre hombres y mujeres. En países en desarrollo, se han incrementado los negocios que no disponen de un local específico y persisten en la informalidad. El objetivo de esta investigación fue evaluar, desde una perspectiva de género, el efecto moderador de la decisión de no disponer de un lugar específico en la relación existente entre el capital humano (educación, experiencia y tipo de emprendimiento) y la informalidad empresarial.

Se utilizó la Encuesta Nacional de Hogares 2014–2018, donde se obtuvo una muestra de 50.316 microempresas peruanas −23.314 lideradas por mujeres y 27.002 lideradas por hombres— con más de tres años de operación. Los datos fueron analizados con la técnica de regresión logística.

Los resultados mostraron un efecto moderador de los negocios sin local específico sobre la relación entre la educación y la informalidad en el caso de las mujeres. Y, para los hombres, el efecto moderador recayó sobre la educación, experiencia y el tipo de emprendimiento que influye sobre la formalidad de sus negocios.

Se analiza la problemática de la informalidad en las empresas establecidas con más de 42 meses de operación. Se explora el efecto moderador en la decisión de no tener un local específico en la relación entre capital humano e informalidad. Este estudio amplía los estudios de informalidad empresarial en países en desarrollo de América Latina, incorporando una perspectiva de género.

This study aims to analyze the effects of microentrepreneurs’ knowledge transfer (KT) on personal improvement (PI) and business improvement (BI).

The study was developed in two stages: a literature review based on KT and the learning process in microenterprises to have managerial competence and PI and BI to acquire the managerial competence that entrepreneurs need. The second stage was constructing a structural model based on 107 questionnaires and bootstrapping of 5,000 replications of microentrepreneurs who went through a training program (quantitative) and a focus group (qualitative). This study had a mixed approach, exploratory scope and experimental design.

The research showed real evidence about the performance level of microentrepreneurs when they passed through the process of KT and its impact on PI and BI. This research considers their managerial competencies, and the findings show a relationship between the theory of individual and organizational learning.

This study considered Peruvian microentrepreneurs who participated in a virtual training program that included several courses related to their current environments and topics of interest. The analyzed period covered the years affected by COVID-19.

The model reveals that KT is relevant to PI and BI. Performance was measured regarding growth, income, innovation, productivity and responsibility before and after the program.

This research analyzed the need for training microentrepreneurs for personal and private reasons under a COVID-19 scenario to foster their businesses and assume financial responsibilities. This study considered Peru’s reality, a country in which 94.9% of companies are microenterprises. The study revealed that microentrepreneurs improved their personal and professional lives and addressed relevant social problems that affect their environments because of the KT effects.

This study bridges the gap in the literature on how the theory of KT can be applied to entrepreneurs. This study revealed significant findings in terms of PI and BIs. The impact of KT indicates the relevance of managerial competencies related to the performance level obtained in terms of growth, income, innovation, productivity and responsibility.

This paper aims to evaluate whether entrepreneurs with an innovative product/service are more likely to formally register their businesses. Understanding the decision of business registration as a rational choice of the entrepreneurs, where she weighs the costs versus the benefits of such formalization, the study expands the literature on informal entrepreneurship by looking at the benefit-side rather than the typically evaluated cost-side of an individual cost-benefit evaluation.

The authors relied on the Global Entrepreneurship Monitor (GEM) adult population survey to evaluate the hypothesis. Specifically, the authors used the GEM data of 2016 for Colombia, covering 2,069 observations (a representative sample at the country level), evaluating the relationship between innovativeness and business registration for the early stage of the entrepreneurial process. Given the nature of our dependent variable, the authors estimated a logistic regression model.

Different from what the authors hypothesized, they did not find empirical evidence for a positive correlation between an innovative product or service and business registration. Instead, businesses that compete with many others offering the same product/service have a higher tendency to register at the Chamber of Commerce. Contrarily of what might be suspected, opportunity-based entrepreneurship – as opposed to necessity-based – is not a relevant variable when formalizing a business, providing evidence for our hypothesis that necessity-based entrepreneurship cannot be equalized with informal entrepreneurship. Additionally, the authors show that an entrepreneur with higher socioeconomic status is more likely to register his company.

The results provide first exploratory evidence that the benefit evaluation may play a role in formalizing a start-up, thus calling for future research that not only tackles the influence of registration costs and administrative burden but rather looks at the outcome of a cost-benefit analysis. The data imply several limitations which future research should address: variables measuring the innovativeness of the product/service are rather coarse measures and need to be expanded and detailed in future research. Additionally, the authors acknowledge that a relatively high number of missing values may generate a selection bias in our population sample. Finally, because of situating the research in a developing country, the research results may lack generalizability. Therefore, researchers are encouraged to test the proposed propositions further.

In a country like Colombia with very high levels of informality, it is necessary that the government fully understands the role of innovation in the formalization process of start-ups. The results indicate that a differentiation of support mechanisms to increase the formalization of businesses according to the different stages of their development may be necessary and that aside from costs, benefits of formalization play a role. A higher level of formality is not only related to economic growth but also much better protection of workers, therefore going beyond the reduction of registration costs and the implied administrative burden should be an additional public policy target for decreasing informality. Finally, the correlation of socioeconomic stratum with the decision to register hints at a varying evaluation of formalization, a point that merits attention by government and academia.

The study shifts the focus from the evaluation of solely costs for business registering as a barrier to start-up formalization to the cost-benefit analysis. The authors propose – and show – that such an evaluation is not generalizable for all kinds of business. Specifically, the authors show that a start-up is more likely to register when it competes with a large number of competitors than when it competes with a smaller number of others offering the same. At the same time, the authors also show that the stage at which the start-up company is at influences the decision to formalize.

Este trabajo tiene como objetivo evaluar si los empresarios con un producto/servicio innovador son más propensos a registrar formalmente sus negocios, entendiendo la decisión de registrar el negocio como una elección racional, en la que el emprendedor sopesa los costos frente a los beneficios de dicha formalización. Este estudio amplía la literatura sobre el emprendimiento informal al plantear un análisis enfocado en los beneficios de una formalización del negocio.

Se utiliza la encuesta Global Entrepreneurship Monitor (GEM) Adult Population Survey para evaluar nuestras hipótesis. Específicamente, utilizamos los datos del GEM de 2016 para Colombia, cubriendo 2.069 observaciones (una muestra representativa a nivel de país), evaluando la relación entre una oferta innovadora y el registro de negocios para la etapa temprana del proceso emprendedor. Dada la naturaleza de nuestra variable dependiente, estimamos un modelo de regresión logística.

Contrario a la hipótesis propuesta, no encontramos una correlación estadísticamente significativa positiva entre un producto o servicio innovador y el registro de empresas. En su lugar, las empresas que compiten con muchas otras empresas que ofrecen el mismo producto/servicio tienen una mayor tendencia a registrarse en la Cámara de Comercio. Asimismo, el emprendimiento basado en la oportunidad -en contraposición al basado en la necesidad- no es una variable relevante a la hora de formalizar un negocio, hallazgo en congruencia con a nuestra hipótesis de que el emprendimiento basado en la necesidad no puede equipararse al emprendimiento informal. Además, mostramos que un emprendedor con un estatus socioeconómico más alto tiene una mayor probabilidad de registrar su empresa.

Los resultados obtenidos proporcionan la primera evidencia exploratoria de que la evaluación de los beneficios puede desempeñar un rol en la formalización de una empresa de nueva creación, por lo que se requiere mayor investigación que no sólo aborde la influencia de los costos de registro y administrativos asociados, sino que examine el resultado de un análisis costo-beneficio. Los datos utilizados tienen varias limitaciones que una investigación posterior debería abordar: las variables que miden el carácter innovador del producto/servicio son medidas muy básicas y deben ampliarse y detallarse en futuros estudios. Además, el número relativamente alto de valores perdidos puede generar un sesgo de selección en nuestra muestra empleada. Por último, al situar nuestra investigación en el contexto de un país de desarrollo, los resultados pueden ser poco generalizables. Por lo tanto, futuras investigaciones deberían abordar en detalle los hallazgos presentados.

En un país como Colombia, con niveles muy altos de informalidad, es necesario que el gobierno comprenda plenamente el papel de la innovación en el proceso de formalización de las empresas emergentes. Nuestros resultados indican que una diferenciación de los mecanismos de apoyo para aumentar la formalización de las empresas según las diferentes etapas de su desarrollo puede ser necesario. A su vez, además de los costos, los beneficios de la formalización juegan un papel importante. Un mayor nivel de formalidad no sólo está relacionado con el crecimiento económico sino también con una mejor protección de los trabajadores, por lo que ir más allá de la reducción de los costos de registro y de la carga administrativa implícita debería ser un objetivo adicional de política pública para disminuir la informalidad. Por último, la correlación del estrato socioeconómico con la decisión de registrarse sugiere que la evaluación de formalizarse varía dependiendo del estatus socioeconómico, un punto que merece la atención del gobierno y la academia.

Nuestro estudio desplaza la atención exclusiva en los costos de registro de una empresa, y sus barreras asociadas, hacia el análisis costo-beneficio como parte de la evaluación y decisión de formalización de las nuevas empresas. Proponemos ‐y demostramos‐ que dicha evaluación no es generalizable para todo tipo de empresas. En concreto, demostramos que es más probable que una empresa emergente se registre cuando compite con un gran número de competidores que cuando compite con un número menor de otras que ofrecen lo mismo. A su vez, también mostramos que la etapa de desarrollo en la cual se encuentra la empresa emergente influye en la decisión de formalizarse.

The purpose of this chapter is to analyze gaps in effectiveness of Mexico’s labor legislation, in terms of equality in employment. Early adoption of progressive legislation should enable equal access for women, elder and disabled people to workplaces.

This chapter is based on an extensive review and examination of secondary data reports from reliable sources, as well as an analysis of primary data drawn from job boards operating in Mexico.

This study reveals a large gap between the legal framework and practice on diversity management in Mexico. Notwithstanding the existing legislation in Mexico to promote equity and equality in employment, age and gender are factors of discrimination in almost 60% of job offers. This study also shows that the intersection of different forms of diversity, such as gender, age, and disability, augment discrimination at work. Our analysis suggests that older women with disabilities suffer disproportionally from discrimination compared to older men and people with disabilities in general.

We outline practical implications for public policy and courses of action for managers interested in diversity management. Greater consideration should be given to those who face an intersection of factors related to discrimination.

This study contributes to the literature by exploring diversity management issues at workplaces in Mexico, which is an under-researched country. Furthermore, it attempts to combine macro-institutional and meso-organizational levels focusing on three characteristics traditionally related to increased marginalization: women, elders, and persons with disabilities. The results indicate that strong legal frameworks, though necessary, are not sufficient to ensure equality. Other crucial factors such as national and organizational cultural change, trust in government and enforcement mechanisms are necessary to improve diversity management practices.

The objective of the work is to show the way in which creativity can influence entrepreneurial activity in Latin America. To do this, a review was made of the work related to: the mechanisms and contexts that stimulate creativity in business activities both internationally and in the region; and those that account for the contextual frameworks that favor or inhibit the development of business activity. Based on the above, it was reviewed in a more specific way, to what extent the link between creativity and entrepreneurship works or does not work in different types of companies such as small rural companies, women's businesses, and informal ones. In the last section of the chapter, with data constructed from the GEM, the impact of the context is shown to understand the geographical, historical, cultural, and institutional variations in the actions of entrepreneurship and creativity in the region, and with it, qualify the global studies on their relation.

International development organizations promote access to resources through self-employment as one of the main strategies to achieve women's empowerment. However, many self-employees are more similar to informal workers than to successful entrepreneurs affecting women's control over resources and their empowerment process. This article analyzes the relationship between informal entrepreneurship and female empowerment in the context of an emerging economy.

The authors surveyed a sample of 295 female street vendors in Bogotá – Colombia. Contingency and correlational analysis is performed.

Evidence is found about the expansion of women's capacity to make decisions about resource allocation and time managing because of informal entrepreneurship. Nevertheless, these decisions are not strategic nor given in a context with several options. Several structural constraints to the exercise of agency limit empowerment to an individual process dependent on circumstances instead of a collective process resulting in changes in women's social conditions.

This research allows for a better understanding of the potentialities and opportunities these entrepreneurships offer to women and what strategies could be implemented to take advantage of them.

Despite their characteristics, informal entrepreneurship has potentialities to improve female empowerment especially when factors beyond economic rationality, such as personal, familial and sociocultural, are considered.

The authors discuss the category of informal entrepreneurship in emerging economies and evaluate the success of this type of entrepreneurship with a gender point of view by incorporating empowerment as measure.