Identification of social and economic factors influencing entrepreneurship through structural equation modeling

Palomino J.C.V.; Bernal P.M.P.; Barbier P.J.A. · Contaduria y Administracion (2023) · DOI: 10.22201/fca.24488410e.2023.4823

Resumen

This research analyzes the influence that economic factors and social factors have on entrepreneurship by analyzing the relationship between these three constructs, using a PLS-based structural equation model (SEM) through a variance-based approach, which analyzed the relationships between these factors and entrepreneurship with the disposition of Sustainable Development Goals, Entrepreneurial Intention Rate and Total Entrepreneurial Activity Rate in initial stage as latent variables. In addition, data were collected from 60 countries in various geographic areas, which were validated by means of a quantitative partial least squares model. The results indicate that only economic factors significantly explain entrepreneurship, while social factors are not statistically significant in the model. Our findings imply that countries that invest in strengthening their economic factors have higher rates of entrepreneurship.

Instituciones: Pontificia Universidad Católica del Perú; Universidad de Lima