Entrepreneurship in the Rio Grande do Sul, Brazil: the determinants and consequences for the municipal development
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This paper is about the links between entrepreneurship determinants,
entrepreneurship rate and entrepreneurship consequences. A model relating
demographic, cultural, economical and institutional antecedents to entrepreneurship
rate and to economic and social regional performance is proposed and tested using
Rio Grande do Sul municipal data. The results support the view that institutional,
economical and demographic variables shape entrepreneurship rate. Moreover
support was also found for the fact that the entrepreneurship rate impacts the
development of localities. Unlike other researches our results also suggest that the
entrepreneurship rate mediates the effects of other variables on the regional economic
and social performance. This result has important implications for establishing
regional development policies because if the interest is to enhance economic and social
development the best practice is to improve the entrepreneurship antecedents rather
than only stimulate more people to start new business.
