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Entrepreneurship dynamism - The influence of contextual factors on new entries: A comparative study of two business environments: Sweden and Brazil
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
2014 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The entrepreneurship dynamism of a country is the center of Schumpeter’s creativedestruction process and virtuous circle, in which new and innovative companies enteringthe market drive the obsolete and less productive ones out of the market. As aconsequence of this process, the market is improved and it incentivizes the creation ofinnovative solutions to solve problems. The study focuses on the pivotal function of theentries in this process.

To better understand the creation of new ventures process the study investigates how thecontextual factors impact the entrepreneur’s decision of starting a new business, focusingon two business environments: Sweden and Brazil. Through interviews with Swedish andBrazilian entrepreneurs we analyze how entrepreneurs perceive the contextual factors andhow it impacted their new venture creation process.

Through the literature we find that the business environment is composed by seven majorfactors that, with an extended framework based on literature review, we consider as:economic wealth, government policies and procedures, legal & administrative, society’sculture; network and knowledge; financial assistance; and non-financial assistance.

Analyzing the empirical material about the business environments we find that Swedishand Brazilian entrepreneurs feel the influence of the different contextual factors inbusiness creation but do not always understand their causes. Our findings show that theseven contextual factors do not have the same level of influence in Sweden and Braziland often depend on the environment. However, for entrepreneurs in both two contextualfactors have a pivotal impact: network and financial assistance.

This study contributes to the theory by providing a more detailed extended framework tostudy the influence of contextual factors on the process of starting a new business.Furthermore, this research also contributes by providing empirical evidence of Swedishand Brazilian entrepreneurs’ perceptions of their business environment and the influenceof the contextual factors.

Place, publisher, year, edition, pages
2014. , 107 p.
Keyword [en]
New business, entrepreneurship, entrepreneurship dynamism, geographical economy, contextual factors, business environment, entrepreneurial decision, Sweden, Brazil
National Category
Business Administration
URN: urn:nbn:se:umu:diva-97315OAI: diva2:771651
Available from: 2015-01-15 Created: 2014-12-15 Last updated: 2015-01-15Bibliographically approved

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