Entrepreneurship Dives

This episode talks about the relationship between entrepreneurs' campaign launching decisions across different national context, with varying regulatory characteristics.

There exists little evidence on how institutional support and digitalization jointly shape entrepreneurial behavior during crises. This episode discusses the following question: how do government support mechanisms and digital technologies influence entrepreneurship amid economic disruption? There is a particular focus on chancer entrepreneurs—individuals who leverage government aid and digital tools to navigate uncertainty and seize business opportunities.

Entrepreneurship has been highlighted as a powerful engine for economic growth. Yet, countries such as Colombia have created perverse incentives for the emergence of destructive entrepreneurship, which negatively affects growth. Using a two-step approach in Colombian regions, we observe whether formal and informal institutions’ incentives condition the negative association between new coca crops (as destructive entrepreneurial activity) and the regional economic growth process of Colombia.

Latin American countries exhibit significant levels of informal economic activity and a low degree of trade openness. Yet, little is known about the effect of these institutional characteristics on the performance of SMEs when venturing abroad to explore international markets. Based on an institutional voids approach, we explore the effects of unfair competition, particularly related to informality, on export intensity of SMEs conditioned by tariffs, trade regulations, and taxes in Latin America.

This research paper explores the relationship between a nation's economic development level and its social entrepreneurial activity. It is investigated whether social ventures are more likely to arise in less developed countries with weak institutions or in developed nations with stronger support systems. By analyzing data from numerous global datasets across 59 countries, the study identifies how formal and informal institutional mechanisms influence the formation of social enterprises. Findings indicate that informal institutions positively correlate with social venture creation worldwide, but the impact of formal institutions varies significantly depending on a country's economic stage. Ultimately, this comparative analysis offers insights for policymakers aiming to foster social entrepreneurship in diverse economic contexts.