Advertisement

Reasons for the Almost Complete Absence of High-Growth Ambition and Innovation Activity of Early-Stage Entrepreneurs in Brazil

  • Ronald Jean Degen
  • Nicholas Harkiolakis
Chapter
Part of the Studies on Entrepreneurship, Structural Change and Industrial Dynamics book series (ESID)

Abstract

This multiple case study contributes to identifying the reasons behind the almost complete absence of high-growth ambition and innovation activity of early-stage entrepreneurs in Brazil by investigating why they did not develop similar cognitive frameworks as the countries high-growth entrepreneurs. The understanding of the reasons can assist in the planning of programs and policies directed toward the creation of the necessary conditions to increase the number of early-stage entrepreneurs with high-growth ambition and hence promote the country’s economic growth. The reasons identified by the study were that high self-efficacy in the cognition/personality traits, knowledge (human capital) acquired from family and education complemented by task-related professional knowledge, and social capital that provided support from the professional network based on professional reputation and from family are the key factors in the cognitive framework of high-growth that explains their high-growth ambition and innovation activity are rare in Brazil. These factors are rare in Brazil, particularly the high self-efficacy and knowledge (human capital) acquired from family and education, because only those who belong to the country’s very small well-educated and empowered elite like the high-growth entrepreneurs possess them, whereas most early-stage entrepreneurs in Brazil that don’t belong to this elite did not acquire these key factors in their cognitive frameworks and so don’t have high-growth ambition and develop innovation activities.

Keyword

Ambition of entrepreneurs Innovation activity of entrepreneurs Cognitive-framework of entrepreneurs High-growth entrepreneurs Self-efficacy of entrepreneurs 

References

  1. Ács, Z. J. (2008). Foundations of high impact entrepreneurship. Boston, MA: Now.Google Scholar
  2. Ács, Z. J., Parsons, W., & Tracy, S. (2008, June). Small business research summary: High-impact firms: Gazelles revisited (Research Report No. 328). Washington, DC: SBA Office of Advocacy.Google Scholar
  3. Ács, Z. J., Szerb, L, & Autio, E. (2016). Global entrepreneurship index 2016. Retrieved from http://thegedi.org/2016-global-entrepreneurship-index/
  4. Aldrich, H. E., & Cliff, J. E. (2003). The pervasive effects of family on entrepreneurship: Toward a family embeddedness perspective. Journal of Business Venturing, 18(5), 573–596.CrossRefGoogle Scholar
  5. Alvarez, S. A., & Busenitz, L. W. (2001). The entrepreneurship of resource-based theory. Journal of Management, 27, 755–775.CrossRefGoogle Scholar
  6. Anderson, M., Grant, K., Halcro, K., Devis, J. M. R., & Genskowsky, L. G. (Eds.). (2013). Innovation support in Latin America and Europe: Theory, practice and policy in innovation and innovation systems. Burlington, NY: Gower.Google Scholar
  7. Ardichvili, A., Cardozo, R., & Ray, S. (2003). A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing, 18(1), 105–123.CrossRefGoogle Scholar
  8. Audretsch, D. B. (1995). Innovation and industry evolution. London, UK: Routledge.Google Scholar
  9. Autio, E. (2011). High-aspiration entrepreneurship. In M. Minniti (Ed.), The dynamics of entrepreneurship: Evidence from the global entrepreneurship monitor data (pp. 251–276). Oxford, GB: Oxford University Press.CrossRefGoogle Scholar
  10. Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191–215.CrossRefGoogle Scholar
  11. Bandura, A. (1993). Perceived self-efficacy in cognitive development and functioning. Educational Psychologist, 28(2), 117–148.CrossRefGoogle Scholar
  12. Bandura, A., Barbaranelli, C., Caprara, G. V., & Pastorelli, C. (1996). Multifaceted impact of self-efficacy beliefs on academic functioning. Child Development, 67(3), 1206–1222.CrossRefGoogle Scholar
  13. Baron, R. A. (2006). Opportunity recognition as pattern recognition: How entrepreneurs “connect the dots” to identify new business opportunities. Academy of Management Perspectives, 20(1), 114–119.  https://doi.org/10.5465/AMP.2006.19873412.CrossRefGoogle Scholar
  14. Baron, R. A. (2012). Entrepreneurship: A process perspective. In J. R. Baum, M. Frese, & R. A. Baron (Eds.), The psychology of entrepreneurship (pp. 71–102). New York, NY: Psychology Press.Google Scholar
  15. Baron, R. A., & Markman, G. D. (2000). Beyond social capital: How social skills can enhance entrepreneurs’ success. Academy of Management Executive, 14(1).  https://doi.org/10.5465/AME.2000.2909843.CrossRefGoogle Scholar
  16. Bluhm, D. J., Harman, W., Lee, T. W., & Mitchell, T. R. (2011). Qualitative research in management: A decade of progress. Journal of Management Studies, 48(8), 1866–1891.CrossRefGoogle Scholar
  17. Boyd, N. G., & Vozikis, G. S. (1994). The influence of self-efficacy on the development of entrepreneurial intentions and actions. Entrepreneurship Theory & Practice, 18(4), 63–77.CrossRefGoogle Scholar
  18. Cardon, M. S., & Kirk, C. P. (2015). Entrepreneurial passion as mediator of the self-efficacy to persistence relationship. Entrepreneurship Theory & Practice, 39(5), 1027–1050.  https://doi.org/10.1111/etap.12089.CrossRefGoogle Scholar
  19. Carr, J. C., & Sequeira, J. M. (2007). Prior family business exposure as intergenerational influence and entrepreneurial intent: A theory of planned behavior approach. Journal of Business Research, 60(10), 1090–1098.CrossRefGoogle Scholar
  20. Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9(5), 371–395.CrossRefGoogle Scholar
  21. Corbin, J., & Strauss, A. L. (2015). Basics of qualitative research (4th ed.). Thousand Oaks, CA: Sage.Google Scholar
  22. Degen, R. J. (2009). O empreendedor: Empreender como opção de carreira. São Paulo, BR: Prentice-Hall do Brasil.Google Scholar
  23. Degen, R. J. (2017). Cognitive framework of high-growth entrepreneurs and reasons for the almost complete absence of high-growth ambition of early-stage entrepreneurs in Brazil. Ann Arbor, MI: ProQuest.Google Scholar
  24. Drexler, M., & Amorós, J. E. (2015). Guest post: How Chile and Colombia eluded the ‘entrepreneur trap’. Financial Times, Blogs. Retrieved from http://blogs.ft.com/beyond-brics/2015/01/08/guest-post-how-chile-and-colombia-eluded-the-entrepreneur-trap/
  25. Drnovšek, M., Wincent, J., & Cardon, M. S. (2010). Entrepreneurial self-efficacy and business start-up: Developing a multi-dimensional definition. International Journal of Entrepreneurial Behaviour & Research, 16(4), 329–348.CrossRefGoogle Scholar
  26. Endeavor. (2015). Conheça os empreendedores endeavor do Brasil. Retrieved from Empreendedores Endeavor website: https://endeavor.org.br/empreendedores-endeavor/
  27. Fiet, J. O. (2007). A prescriptive analysis of search and discovery. Journal of Management Studies, 44(4), 592–611.CrossRefGoogle Scholar
  28. Fiet, J. O., Piskounov, A., & Patel, P. C. (2005). Still searching (systematically) for entrepreneurial discoveries. Small Business Economics, 25(5), 489–504.CrossRefGoogle Scholar
  29. Foo, M. D. (2011). Emotions and entrepreneurial opportunity evaluation. Entrepreneurship Theory & Practice, 35(2), 375–393.CrossRefGoogle Scholar
  30. George, N. M., Parida, V., Lahti, T., & Wincent, J. (2016). A systematic literature review of entrepreneurial opportunity recognition: Insights on influencing factors. International Entrepreneurship and Management Journal, 12(2), 309–350.  https://doi.org/10.1007/s11365-014-0347-y.CrossRefGoogle Scholar
  31. Grégoire, D. A., Cornelissen, J., Dimov, D., & van Burg, E. (2015). The mind in the middle: Taking stock of affect and cognition research in entrepreneurship. International Journal of Management Reviews, 17(2), 125–142.CrossRefGoogle Scholar
  32. Guedes, M. C. (2008). A presença feminina nos cursos universitários e nas pós-graduações: Desconstruindo a idéia da universidade como espaço masculino [Women’s presence in undergraduate and graduate courses: Deconstructing the idea of university as a male domain]. História, Ciências, Saúde—Manguinhos, 15.  https://doi.org/10.1590/S0104-59702008000500006.CrossRefGoogle Scholar
  33. Haynie, J. M., Shepherd, D. A., & McMullen, J. S. (2009). An opportunity for me? The role of resources in opportunity evaluation decisions. Journal of Management Studies, 46(3), 337–361.CrossRefGoogle Scholar
  34. Heinonen, J., Hytti, U., & Stenholm, P. (2011). The role of creativity in opportunity search and business idea creation. Education + Training, 53(8/9), 659–672.CrossRefGoogle Scholar
  35. Hisrich, R. D., & Peters, M. P. (2002). Entrepreneurship (5th ed.). New York, NY: McGraw-Hill/Irwin.Google Scholar
  36. Hofstede, G. H. (2010). Country [Fact sheet]. Retrieved from Geert Hofstede website: https://geert-hofstede.com/brazil.html
  37. Hofstede, G. H., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations: Software of the mind: Intercultural cooperation and its importance for survival (3rd ed.). New York: McGraw-Hill.Google Scholar
  38. IBGE. (2015a). Brazil in figures. Rio de Janeiro, BR: IBGE.Google Scholar
  39. IBGE. (2015b). Síntese de indicadores sociais: Uma análise das condições de vida da população brasileira. Rio de Janeiro, BR: IBGE.Google Scholar
  40. IBGE. (2015c). Indicadores de desenvolvimento sustentável Brasil 2015. Rio de Janeiro, BR: IBGE.Google Scholar
  41. Ipea. (2012). Políticas sociais: Acompanhamento e análise. Rio de Janeiro, BR: Ipea.Google Scholar
  42. Kelley, D., Singer, S., & Herrington, M. (2016). Global reports: GEM 2015/2016 Global Report. London, GB: Global Entrepreneurship Research Association.Google Scholar
  43. Levie, J., & Autio, E. (2013). ERC white paper: Growth and growth intentions (Research Report No. 1). Retrieved from http://www.enterpriseresearch.ac.uk/wp-content/uploads/2013/12/ERC-White-Paper-No_1-Growth-final.pdf
  44. Li, Y. (2011). Emotions and new venture judgment in China. Asia Pacific Journal of Management, 28(2), 277–298.CrossRefGoogle Scholar
  45. Macedo, M. D. M., Greco, S. M. D. S. S., Andreassi, T., Antunes, A. L., Borges, C., Pansarella, L., et al (2013). National reports: Empreendedorismo no Brasil. Retrieved from http://www.gemconsortium.org/report
  46. McClelland, D. C. (1976). The achieving society. New York, NY: Free Press. (Original work published 1961).Google Scholar
  47. McMullen, J. S., & Shepherd, D. A. (2006). Entrepreneurial action and the role of uncertainty in the theory of the entrepreneurs. Academy of Management Review, 31(1), 122–152.  https://doi.org/10.5465/AMR.2006.19379628.CrossRefGoogle Scholar
  48. Nicolaou, N., Shane, S., Cherkas, L., & Spector, T. D. (2009). Opportunity recognition and the tendency to be an entrepreneur: A bivariate genetics perspective. Organizational Behavior and Human Decision Processes, 110(2), 108–117.CrossRefGoogle Scholar
  49. Ramos-Rodríguez, A. R., Medina-Garrido, J. A., Lorenzo-Gómez, J. D., & Ruiz-Navarro, J. (2010). What you know or who you know? The role of intellectual and social capital in opportunity recognition. International Small Business Journal, 28(6), 566–582.CrossRefGoogle Scholar
  50. Rauch, A., & Frese, M. (2007). Let’s put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners’ personality traits, business creation, and success. European Journal of Work and Organizational Psychology, 16(4), 353–385.CrossRefGoogle Scholar
  51. Sarasvathy, S. D., Dew, N., Velamuri, S. R., & Venkataraman, S. (2010). Three views of entrepreneurial opportunity. In Z. J. Acs & D. B. Audretsch (Eds.), International handbook series on entrepreneurs, Handbook on entrepreneurship research (Vol. 5, 2nd ed., pp. 77–96). New York, NY: Springer.CrossRefGoogle Scholar
  52. Schwab, K. (Ed.). (2015). Insight report: The global competitiveness report 2015–2016. Retrieved from World Economic Forum website: http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016.pdf
  53. Schwab, K. (Ed.). (2016). Insight report: The global competitiveness report 2016–2017. World Economic Forum. Retrieved from http://www3.weforum.org/docs/GCR2016-2017/05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf
  54. Schwartzman, S. (2012). Economic growth and higher education policies in Brazil: A link? International Higher Education, 67(Spring), 28–29.Google Scholar
  55. Schwartzman, S. (2014). Academic drift in Brazilian education. In A. Maldonado-Maldonado & R. M. Bassett (Eds.), Higher education dynamics series. The forefront of international higher education (Vol. 42, pp. 61–72). New York: Springer.CrossRefGoogle Scholar
  56. Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469.CrossRefGoogle Scholar
  57. Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13(2), 257–279.CrossRefGoogle Scholar
  58. Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226.  https://doi.org/10.5465/AMR.2000.2791611.CrossRefGoogle Scholar
  59. Singer, S., Amorós, J. E., & Arreola, D. M. (2014). Global report: GEM 2014 global report. Retrieved from http://www.gemconsortium.org/report
  60. Slavery’s legacies. (2016). The Economist, 420(9006), 51–52.Google Scholar
  61. Stam, E., Hartog, C., van Stel, A., & Thurik, R. (2011). Ambitious entrepreneurship, high-growth firms, and macro-economic growth. In M. Minniti (Ed.), The dynamics of entrepreneurship: Evidence from the global entrepreneurship monitor data (pp. 231–250). Oxford, GB: Oxford University Press.CrossRefGoogle Scholar
  62. Tominc, P., & Rebernik, M. (2007). Growth aspirations and cultural support for entrepreneurship: A comparison of post-socialist countries. Small Business Economics, 28(2/3), 239–255.CrossRefGoogle Scholar
  63. Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341–358.CrossRefGoogle Scholar
  64. United Nations Development Program. (2015). Human development report. New York, NY: United Nations.Google Scholar
  65. Vaghely, I. P., & Julien, P. A. (2010). Are opportunities recognized or constructed?: An information perspective on entrepreneurial opportunity identification. Journal of Business Venturing, 25(1), 73–86.CrossRefGoogle Scholar
  66. Venkataraman, S. (1997). The distinctive domain of entrepreneurship research. In J. A. Katz (Ed.), Advances in entrepreneurship, firm emergence and growth (pp. 119–138). Greenwich, CT: Jai.Google Scholar
  67. von Hippel, E. (1988). The sources of innovation. New York: Oxford University Press.Google Scholar
  68. WEF, & GEM. (2015). Leveraging entrepreneurial ambition and innovation: A global perspective on entrepreneurship, competitiveness and development. Retrieved from http://www3.weforum.org/docs/WEFUSA_EntrepreneurialInnovation_Report.pdf
  69. Westhead, P., Ucbasaran, D., & Wright, M. (2009). Information search and opportunity identification: The importance of prior business ownership experience. International Small Business Journal, 27(6), 659–680.CrossRefGoogle Scholar
  70. Yin, R. K. (2014). Case study research: Design and methods (5th ed.). Thousand Oaks, CA: Sage.Google Scholar
  71. Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of Business Venturing, 24(5), 519–532.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Ronald Jean Degen
    • 1
  • Nicholas Harkiolakis
    • 2
  1. 1.International School of Management (ISM)ParisFrance
  2. 2.University of LiverpoolLiverpoolUK

Personalised recommendations