The relations between entrepreneurship and Brazilian poverty: Empirical evidences of panel data for the period to 1994 to 2014

Abstract

This work investigates the relationships between poverty and entrepreneurship from panel data with annual frequency for the twenty-seven federative units of Brazil, comprising the period from 1999 to 2014. The methodological procedures adopt the estimation of two sets of fixed and random effects models including regional dummy's, establishing entrepreneurship as a dependent variable as a function of poverty, regional states revenue, illiteracy, unemployment and other control variables. The results show that Brazilian entrepreneurship is closely related to unfavorable socially conditions, but also acts as an important mechanism to fight the deepening of poverty in all regions of the country.