The Influence of Institutional Context on Entrepreneurship in Latin America

Abstract

This paper aims to discuss about the relationship between institutional context and the level of entrepreneurship in Latin American countries. Based on previous research (a) institutional environment, (b) macroeconomic environment and (c) educational environment are dimensions of institutional context that could impact the country levels of initial entrepreneurship (TEA) and established entrepreneurship (TEE). Using regression models, level of entrepreneurship (dependent variable) was represented by TEA and TEE rates for the period from 2007 to 2016. As a result, the institutional environment and macroeconomic environment showed a negative influence on TEE and the educational environment had a positive influence. Regarding the TEA, it was shown that it has a positive influence from all the independent variables. In this way, it can be affirmed that they have the potential to broaden the discussions at the intersection of entrepreneurship studies, developing countries and institutional theory, as well as opening possibilities for future research.