Entrepreneurship and economic growth: some empirical evidence
Main Article Content
Abstract
The entrepreneurship of small business has been almost unanimously viewed as beneficial for the social and economic life in different countries and regions. This paper aims to answer the following research question: in Brazil, do varying rates of entrepreneurship across regions affect economic performance? The paper investigates the effects of entrepreneurial activity on economic growth and unemployment rate in 853 municipalities in the state of Minas Gerais, Brazil. Entrepreneurship rate of a municipality is the proportion of self-employment in the work force. Its impact on the growth of GDP and unemployment is analyzed by the methodology of multiple regression models. The empirical results reveal a robust association between entrepreneurship and unemployment: the higher the entrepreneurial activity of the municipality, the lowest the unemployment rate. But the influence of entrepreneurship on the local economic growth is also negative: where there was more entrepreneurial activity in 2000, GDP growth was smaller the following three years. The interpretation of these results leads us to the discussion of entrepreneurship by necessity that characterizes major part of the entrepreneurial activity in Brazil.
Downloads
Download data is not yet available.
Download data is not yet available.
Article Details
How to Cite
Barros, A. A. de, & Pereira, C. M. M. de A. (1). Entrepreneurship and economic growth: some empirical evidence. Journal of Contemporary Administration, 12(4), 975-993. https://doi.org/10.1590/S1415-65552008000400005
Section
Articles
Since mid-February of 2023, the authors retain the copyright relating to their article and grant the journal RAC, from ANPAD, the right of first publication, with the work simultaneously licensed under the Creative Commons Attribution 4.0 International license (CC BY 4.0), as stated in the article’s PDF document. This license provides that the article published can be shared (allows you to copy and redistribute the material in any medium or format) and adapted (allows you to remix, transform, and create from the material for any purpose, even commercial) by anyone.
After article acceptance, the authors must sign a Term of Authorization for Publication, which is sent to the authors by e-mail for electronic signature before publication.