Fifteenth Global Studies Conference

Abstract

Entrepreneurship is associated with economic growth in developed countries. Education level, however, has different impacts on entrepreneurship. In some contexts, it has a negative impact due to educated individuals having greater job choice and awareness of risks and challenges in establishing a business. In other cases, low levels of education may drive the pursuit of entrepreneurship out of necessity. Using Global Entrepreneurship Monitor data from 2016, this research sought to determine the role of education and related factors in entrepreneurial motivation. The study focused on the following Latin American countries: Panama, Chile, Argentina, Uruguay, Mexico, Brazil, Columbia, Peru, Ecuador, El Salvador, Guatemala, and Belize. Extending current research on entrepreneurship in the Latin American context, specifically related to opportunity and necessity motivations, the current study examined household income, education level, and work status. Findings indicate that higher levels of education corresponded with greater likelihood to pursue entrepreneurship out of opportunity. Similarly, individuals who were employed full time, homemakers, or students were more likely to be nascent entrepreneurs than those who were unemployed or had low levels of education. Income levels were also associated with entrepreneurship. The higher the level of income, the more likely individual were to pursue entrepreneurship out of opportunity. The study provides insights into factors driving entrepreneurial motivations in developing countries.