Description
In this such a brief criteria with regards to entrepreneurial ecosystems in latin america the role of policies.
1
Entrepreneurial Ecosystems in Latin America: the role of policies
Hugo D. KANTIS
†
and Juan S. FEDERICO
†
Introduction
Over the last few years, the importance of entrepreneurship policies in Latin America
has grown substantially. Particularly, based on successful international experiences,
the concept of the entrepreneurial ecosystem has emerged as a benchmark for
designing and implementing entrepreneurship policies in the region, especially in the
case of innovative new ventures. As a consequence, various governments in the
region have decided to launch several entrepreneurship policies based on this
(eco)systemic approach. These policy interventions are mainly oriented towards
dynamic and innovative new ventures.
However, in Latin America, research on this topic is limited and that carried
out is usually based on best practice reports, policy briefs, and position papers
published by international institutions (Etchecopar et al., 2006; Kantis 2010; OECD
2010). This paper tries to fill this gap by examining and comparing a number of
national policies in five Latin American countries (Argentina, Brazil, Chile, Mexico,
and Uruguay). In particular, this paper analyses the role that such national policies
have played in the constitution of national entrepreneurial ecosystems, discussing
the main achievements and future challenges they entail for the region. Therefore,
the main research questions are the following: (a) what are the main trends observed
in Latin American innovative/dynamic entrepreneurship policies during the last
decade?; (b) what is the role that these policies (may) have played on the creation
and sustainability of entrepreneurial ecosystems?; and (c) what are the main
challenges that policies and institutions may face in order to strengthen these
entrepreneurial ecosystems in the region?
This paper is structured as follows. First, we summarize some conceptual
issues regarding the systemic perspective of the entrepreneurial process and
entrepreneurship policy, focusing on Latin America. Then, we describe the main
features of entrepreneurship policy in the selected cases. After that, we analyse and
discuss the main trends observed in terms of the policies applied in the countries
under study and, particularly, the role that policies have played in the creation and
development of entrepreneurial ecosystems. Finally, we offer some concluding
remarks and discuss some implications of our findings.
†
Entrepreneurial Development Programme (PRODEM) – Institute of Industry, Universidad Nacional
de General Sarmiento (Argentina). Hugo Kantis: [email protected] // Juan Federico.
[email protected] .
2
The entrepreneurial ecosystem and the systemic view of entrepreneurship:
conceptual issues
The entrepreneurial ecosystem has emerged as a benchmark for designing
entrepreneurship policies, in particular for new technology-oriented ventures. Based
mainly on the experience of several US regions, most definitions agree that
ecosystems consist of a set of different interconnected actors within a specific area,
which includes at least the following building blocks: universities and R&D
institutions, qualified human resources, formal and informal networks, governments,
angel investors and venture capitalists, professional service providers, and an
enterprising culture which connects all of these factors in an open and dynamic way
(Cohen, 2006; Isenberg, 2011; Neck et al., 2004; Roberts and Eesley, 2009; West
and Bamford, 2005).
Given the locally based nature of many of the above-mentioned factors, each
ecosystem would be the result of the very specific and idiosyncratic way in which
these factors are locally available and combined. Therefore, although the principles
remain the same, there is some risk in trying to replicate these experiences in
different contexts (Isenberg, 2011; West and Bamford, 2005). Moreover, adopting
such a perspective requires a critical appraisal of the initial conditions, particularly
those that refer to the emergence of entrepreneurs and their entrepreneurial
processes. Here is where the ecosystem perspective has to be broadened by a
wider evolutionary and systemic perspective including the concept of national system
of entrepreneurship development.
1
In the particular case of Latin America, there are a number of cultural, social,
and economic factors that have a negative influence on the entrepreneurial context
compared with other regions (Kantis et al., 2004, Kantis 2010). In fact, there is
sufficient evidence showing that the number of growth-oriented and innovative
ventures in our region is limited. In fact, most newly founded businesses tend to be
micro-enterprises with low growth expectations and, hence, little impact at the
macro-level (Kelly et al., 2010). As is shown in Kantis et al. (2004), the
entrepreneurial process considers business creation to be a continuum of different
events and stages influenced by a myriad of cultural, social, regulatory, and
economic variables (factor market conditions, industry structure, among others). A
systemic approach is thus required for this process to be fully understood (see
Figure I, next).
Insert Figure I about here
Broadly defined, the entrepreneurial process starts with the inception stage,
when the entrepreneurial vocation, the motivation to become an entrepreneur, and
!
"#$ %#$& '&()*+, #- (.& /#-/&0( #1 23,(&% #1 4-($&0$&-&5$,.*0 6&7&+#0%&-( ,&& 8)-(*, &( )+ 9::; *-
In this such a brief criteria with regards to entrepreneurial ecosystems in latin america the role of policies.
1
Entrepreneurial Ecosystems in Latin America: the role of policies
Hugo D. KANTIS
†
and Juan S. FEDERICO
†
Introduction
Over the last few years, the importance of entrepreneurship policies in Latin America
has grown substantially. Particularly, based on successful international experiences,
the concept of the entrepreneurial ecosystem has emerged as a benchmark for
designing and implementing entrepreneurship policies in the region, especially in the
case of innovative new ventures. As a consequence, various governments in the
region have decided to launch several entrepreneurship policies based on this
(eco)systemic approach. These policy interventions are mainly oriented towards
dynamic and innovative new ventures.
However, in Latin America, research on this topic is limited and that carried
out is usually based on best practice reports, policy briefs, and position papers
published by international institutions (Etchecopar et al., 2006; Kantis 2010; OECD
2010). This paper tries to fill this gap by examining and comparing a number of
national policies in five Latin American countries (Argentina, Brazil, Chile, Mexico,
and Uruguay). In particular, this paper analyses the role that such national policies
have played in the constitution of national entrepreneurial ecosystems, discussing
the main achievements and future challenges they entail for the region. Therefore,
the main research questions are the following: (a) what are the main trends observed
in Latin American innovative/dynamic entrepreneurship policies during the last
decade?; (b) what is the role that these policies (may) have played on the creation
and sustainability of entrepreneurial ecosystems?; and (c) what are the main
challenges that policies and institutions may face in order to strengthen these
entrepreneurial ecosystems in the region?
This paper is structured as follows. First, we summarize some conceptual
issues regarding the systemic perspective of the entrepreneurial process and
entrepreneurship policy, focusing on Latin America. Then, we describe the main
features of entrepreneurship policy in the selected cases. After that, we analyse and
discuss the main trends observed in terms of the policies applied in the countries
under study and, particularly, the role that policies have played in the creation and
development of entrepreneurial ecosystems. Finally, we offer some concluding
remarks and discuss some implications of our findings.
†
Entrepreneurial Development Programme (PRODEM) – Institute of Industry, Universidad Nacional
de General Sarmiento (Argentina). Hugo Kantis: [email protected] // Juan Federico.
[email protected] .
2
The entrepreneurial ecosystem and the systemic view of entrepreneurship:
conceptual issues
The entrepreneurial ecosystem has emerged as a benchmark for designing
entrepreneurship policies, in particular for new technology-oriented ventures. Based
mainly on the experience of several US regions, most definitions agree that
ecosystems consist of a set of different interconnected actors within a specific area,
which includes at least the following building blocks: universities and R&D
institutions, qualified human resources, formal and informal networks, governments,
angel investors and venture capitalists, professional service providers, and an
enterprising culture which connects all of these factors in an open and dynamic way
(Cohen, 2006; Isenberg, 2011; Neck et al., 2004; Roberts and Eesley, 2009; West
and Bamford, 2005).
Given the locally based nature of many of the above-mentioned factors, each
ecosystem would be the result of the very specific and idiosyncratic way in which
these factors are locally available and combined. Therefore, although the principles
remain the same, there is some risk in trying to replicate these experiences in
different contexts (Isenberg, 2011; West and Bamford, 2005). Moreover, adopting
such a perspective requires a critical appraisal of the initial conditions, particularly
those that refer to the emergence of entrepreneurs and their entrepreneurial
processes. Here is where the ecosystem perspective has to be broadened by a
wider evolutionary and systemic perspective including the concept of national system
of entrepreneurship development.
1
In the particular case of Latin America, there are a number of cultural, social,
and economic factors that have a negative influence on the entrepreneurial context
compared with other regions (Kantis et al., 2004, Kantis 2010). In fact, there is
sufficient evidence showing that the number of growth-oriented and innovative
ventures in our region is limited. In fact, most newly founded businesses tend to be
micro-enterprises with low growth expectations and, hence, little impact at the
macro-level (Kelly et al., 2010). As is shown in Kantis et al. (2004), the
entrepreneurial process considers business creation to be a continuum of different
events and stages influenced by a myriad of cultural, social, regulatory, and
economic variables (factor market conditions, industry structure, among others). A
systemic approach is thus required for this process to be fully understood (see
Figure I, next).
Insert Figure I about here
Broadly defined, the entrepreneurial process starts with the inception stage,
when the entrepreneurial vocation, the motivation to become an entrepreneur, and
!
"#$ %#$& '&()*+, #- (.& /#-/&0( #1 23,(&% #1 4-($&0$&-&5$,.*0 6&7&+#0%&-( ,&& 8)-(*, &( )+ 9::; *-