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Low vs. High Income Entrepreneurial Households: Heterogeneous Response to Common Institution Environment in Developing Countries

Low vs. High Income Entrepreneurial Households: Heterogeneous Response to Common Institution Environment in Developing Countries

Stelvia Matos, Jeremy Hall, Vernon Bachor, Bruno S. Silvestre
Copyright: © 2018 |Pages: 19
ISBN13: 9781522526735|ISBN10: 1522526730|EISBN13: 9781522526742
DOI: 10.4018/978-1-5225-2673-5.ch012
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MLA

Matos, Stelvia, et al. "Low vs. High Income Entrepreneurial Households: Heterogeneous Response to Common Institution Environment in Developing Countries." Geopolitics and Strategic Management in the Global Economy, edited by Angelo Presenza and Lorn R. Sheehan, IGI Global, 2018, pp. 242-260. https://doi.org/10.4018/978-1-5225-2673-5.ch012

APA

Matos, S., Hall, J., Bachor, V., & Silvestre, B. S. (2018). Low vs. High Income Entrepreneurial Households: Heterogeneous Response to Common Institution Environment in Developing Countries. In A. Presenza & L. Sheehan (Eds.), Geopolitics and Strategic Management in the Global Economy (pp. 242-260). IGI Global. https://doi.org/10.4018/978-1-5225-2673-5.ch012

Chicago

Matos, Stelvia, et al. "Low vs. High Income Entrepreneurial Households: Heterogeneous Response to Common Institution Environment in Developing Countries." In Geopolitics and Strategic Management in the Global Economy, edited by Angelo Presenza and Lorn R. Sheehan, 242-260. Hershey, PA: IGI Global, 2018. https://doi.org/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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