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Low vs. High Income Entrepreneurial Households: Heterogeneous Response to Common Institution Environment in Developing Countries
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Author(s): Stelvia Matos (University of Nottingham, UK), Jeremy Hall (University of Nottingham, UK), Vernon Bachor (Winona State University, USA)and Bruno S. Silvestre (University of Manitoba, Canada)
Copyright: 2018
Pages: 19
Source title:
Geopolitics and Strategic Management in the Global Economy
Source Author(s)/Editor(s): Angelo Presenza (University of Molise, Italy)and Lorn R. Sheehan (Dalhousie University, Canada)
DOI: 10.4018/978-1-5225-2673-5.ch012
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Abstract
We explore how income differences influence heterogeneous entrepreneurial responses to the institutional environment in Brazil shapes low-income entrepreneurs' propensity to exploit the informal rather than the formal economy. Drawing on the Brazilian Global Entrepreneurship Monitor (GEM) data, entrepreneurship discourse and institutional theory, we discuss the influence of inadequate preparedness and barriers to institutional support influencing entrepreneurs' abilities to engage in productive economic activities. We contribute to the entrepreneurship discourse by suggesting that concepts developed within the context of relatively prosperous settings do not adequately reflect how low-income entrepreneurs respond to institutional settings.
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