Theory, Evidence and Implications
Batten Entrepreneurship series
Edited by Phillip H. Phan, Sankaran Venkataraman and S. Ramakrishna Velamuri
Chapter 2: The Entrepreneurial Drivers of Regional Economic Transformation in Brazil
José Cezar Castanhar, João Ferreira Dias and José Paulo Esperança INTRODUCTION The study of entrepreneurship has usually been carried out in a somehow paradoxical approach by two diﬀerent streams of literature: the economics literature and the management literature. The economics literature has been emphasizing the contribution of entrepreneurship for economic development through quantitative, econometric studies in which the entrepreneur is an aggregate variable. In this type of study entrepreneurship is measured by a proxy variable, usually the creation of new ﬁrms, and the aim is to evaluate the impact of diﬀerent ﬁrm creation rates on some measures of economic development, usually job creation. Also a regular feature in this type of study is the use of some regional space unit (diﬀerent countries or diﬀerent regions within a country) as the level of analysis. In a diﬀerent path the studies in management literature emphasize the individual entrepreneur, and/or the ﬁrms created by entrepreneurs. In this type of study the aim is usually to evaluate the impact of entrepreneurs’ attributes, ﬁrm’s characteristics and strategies as well as environmental conditions on the ﬁrms’ performance. The economic impact of the entrepreneur at local or regional level is taken for granted. These two diﬀerent approaches for studying the entrepreneurship phenomenon can be seen to contain a curious paradox: on the one hand, the economics literature is more concerned in studying the aggregate eﬀects of entrepreneurship, disregarding the dynamics of the entrepreneurial process itself; on the other...
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