The Emerald Handbook of Entrepreneurship in Latin America

Through the metaphor of navigation, we offer the reader a journey that goes from the literature review about the main theories of creativity throughout the last century to the present, to later address it for Latin America, outlining some reflections on its current context, as well as what the future holds. The literature review shows that, unlike the Western Hemisphere, creativity as a line of research in our region has been somewhat neglected, without being given its rightful place, generally very little addressed. Therefore, it is proposed to get back on track, rescuing what has been done and through an exercise of reflection, proposing new lines of research linked to creativity itself, to innovation, and also toward entrepreneurship.

The objective of the work is to show the way in which creativity can influence entrepreneurial activity in Latin America. To do this, a review was made of the work related to: the mechanisms and contexts that stimulate creativity in business activities both internationally and in the region; and those that account for the contextual frameworks that favor or inhibit the development of business activity. Based on the above, it was reviewed in a more specific way, to what extent the link between creativity and entrepreneurship works or does not work in different types of companies such as small rural companies, women's businesses, and informal ones. In the last section of the chapter, with data constructed from the GEM, the impact of the context is shown to understand the geographical, historical, cultural, and institutional variations in the actions of entrepreneurship and creativity in the region, and with it, qualify the global studies on their relation.

In Latin America and the Caribbean (LAC), the challenge of economic recovery is now more pressing than ever after the impact of COVID-19. The cultural and creative industries (CCI) are one of the sectors that can contribute to a long-term strategy of inclusive and sustainable growth. Nevertheless, the pandemic has created new challenges for CCI, and it has also intensified those faced by the sector before the health crisis, highlighting its fragile foundations. These challenges can be grouped into four areas: employment, digitalization and new business models, access to finance, and a narrative for the sector.

A survey conducted by MERCOSUR Cultural, the United Nations Educational, Scientific, and Cultural Organization (UNESCO), the Ibero-American General Secretariat (SEGIB), the Organization of Ibero-American States (OEI), and the Inter-American Development Bank (IDB) showed this reality and gave guidelines for future initiatives and policies to be implemented to take advantage of these sectors in the long-term strategy of economic recovery. The CCIs are made up of many sectors, different from one another. Intersectoral and interministerial work is essential for the CCIs. And also, a single approach won't work across sectors and countries.

This chapter analyzes studies on organizational creativity in Latin America. Having identified a gap in the literature, we conducted a systematic literature review that provides academics, entrepreneurs, and managers with an overview of their regional reality. Creativity, seen here as a phenomenon that is distinct from innovation, constitutes a field of growing interest, albeit fragmented. Creativity is a multilevel phenomenon that influences individuals, groups, organizations, and the environment. Our results indicate that in the Latin American context, organizational creativity is a recent field, with publications concentrated in the last decade, and characterized by isolation when viewed from the perspective of partnerships among authors and institutions. We analyzed 39 articles and identified authors, journals, and countries with the largest number of publications. Research papers that investigate what enables creativity in organizations as well as articles that focus on organizational levels are the most commonly found. Subsequently, we discussed implications and directions for the field.

This paper examines the evolution of Intellectual Property (IP) commercialization in historical perspective. IP Law imposes an incentive structure that determines the extent of societal investment in those assets. From their inception at the dawn of the Industrial Revolution, IP has expanded due to the introduction of new technologies. Property rights allocation over these assets has traditionally been assigned to governments centralizing the recognition of such property. For a long period of time, government intervention was critical to allow IP commercialization; hence, the political economy of IP was dictated by the prevailing ideology of policymakers in favor or against market transactions. The resulting clash of ideologies has marked the position of developing countries seeking exclusions from open IP commercialization to obtain temporary relief from foreign competition of technology producing countries, as well as that of industrialized countries, seeking to export their technologies overseas. The emergence of blockchain technology, as a decentralized transaction exchange protocol that makes intermediary centralized institutions (i.e. governments) certifying IP irrelevant over a large portion of intellectual property (i.e., trade secrets and copyrights) will create revolutionary institutions facilitating IP commercialization, such as NFTs. We examine this historical evolution in the context of legal institutions governing intellectual property transactions and technology transfer.

Labs are meant for the creation of new products and services or to overcome innovation challenges (Carstensen & Bason, 2012). Media labs, besides the name, go beyond the media industry concepts to respond to technology, communication, and economic changes (Bisso Nunes & Mills, 2021). For that, they integrate public spaces, media, arts, and tech. In short, media labs are organizational structures that allow for experimentation and development, and facilitate open innovation and individual and organizational learning. Many media labs are focused on accelerating media involvement in functional and experimental innovations and rise in a context unrelated to the temporality of media content production, on a systematic innovation approach. But media labs also represent great diversity. In this chapter, we explore key elements of the media lab phenomenon: history, definition, evolution and appearance globally and in Latin America, emergence beyond the media industry, and, by the end, final thoughts about media labs' roles amid future organizational and technological transformations.

The chapter analyzed the conditions and challenges of the innovation in Latin America, and the historical trend in its study in the framework of this handbook. The transformative and inclusive approach of the innovation was evidenced as the most significant ascendent trend in the region. Furthermore, this was identified as a breaking point of the linear individualism of the entrepreneurship and the innovation in Latin America due to this type of innovation that requires high levels of collaboration and strong institutional leaderships. It was highlighted that the major challenge of recovery in the region should be accompanied by a deep transformation in the quality of education because the systematic generation of innovation implies capabilities rather than wills. The chapter closes with a critical reflexion of the phenomenon, the new lines of research in the region, and its implications.

The purpose of this chapter is to analyze, from the Latin American thought approach (LTA), the ideas that were produced after World War II on innovation and entrepreneurship in Latin America. It should be mentioned, from now on, that in this approach the topics, phenomena, or problems are always contextualized within a broader problem to be solved, namely that of development. To this end, two axes of analysis are addressed from which the analytical bases, approaches, key concepts, and public policy proposals are located. The first axis explores the proposals related to the development and the idea of the center-periphery model. The second analyzes the role of innovation and entrepreneurship based on the industrialization model, to identify the problems or inadequacies of Latin American entrepreneurship. The proposal emphasizes the need to contextualize entrepreneurship in the broad dimension of development. In this journey, it will be observed that the role of the entrepreneur has been of relevance for the import substitution industrialization (ISI) model in its beginnings by assigning her/him the task of supplying the domestic market by substituting imports, to reduce degrees of dependence in an asymmetric economic world; in the maturity stage of the model, the need for entrepreneurship was affirmed by incorporating innovation. Briefly, we will see that when the model changed, mainly in the 1980s, the firm would assume the role of a resource center for technological accumulation to achieve competitiveness and significantly insert itself in the export market. From Latin America's history in search for development, we can conclude that innovative business entrepreneurship has been less successful and less effective than Latin America requires.

Sustainable development challenges have been gaining increased attention from scholars across a wide range of disciplines and governments and business leaders of developed and developing countries. In this chapter, we present selected Latin American socioeconomic indicators, and we note that much progress is needed to achieve the region's many sustainable development goals. We bring forth contributions from different streams of innovation studies for addressing grand challenges, and we discourse on how they push the sustainable development mandate forward. Innovation scholars have highlighted the need to elaborate novel transformational approaches to innovation for addressing such pressing grand challenges. Some scholars have also proposed that while the innovation systems framework is well-suited for addressing sustainable development challenges, it must first be profoundly and radically transformed to account for the novel ways of innovating and integrating a diversity of systemic economic actors and social stakeholders who have conflicting visions, interests, norms, and expectations. We present the different foundational strengths and weaknesses of the innovation systems framework and we discuss the pertinence for its profound and radical transformation. We conclude by organizing these different, yet complementary views of innovation in a conceptual framework while discussing the implications for Latin America and future research.

The chapter analyzed the knowledge transfer processes of the Latin American academy to the actors in its environment, and the Science, Technology, and Innovation policy that facilitates or inhibits the processes of generation and use of this university knowledge. The cases of Argentina, Brazil, Chile, Colombia, and Mexico were analyzed to understand the practice of the university knowledge transfer model at different levels – strategic, organizational, and operational – and the complexities involved in the process. It was evidenced by the urgent demand for the transformation of the Latin American University through sustainability and digitalization approaches to be a catalyst for development in the region. The chapter closes with a critical analysis of the phenomenon, future lines of research, and implications of the praxis.

This chapter aims to analyze the participation of entrepreneurship studies from the perspective of capabilities and technology-based startups in Latin America, which implies considering capabilities from a perspective of innovation, technology, knowledge, and learning. The chapter conducts a bibliometric review from which the characteristics of the Latin American presence in the analysis of startups and related issues are identified. The analysis shows that Latin America has had a small but growing presence at the world level, as is the case with the treatment of the startups in the international arena, and where the topics of innovation and capabilities have been little addressed. A scheme is proposed based on which entrepreneurial capabilities are considered as a way of understanding the creation and trajectory of startup companies. In the trajectory of the startup companies, these capabilities unfold and grow through processes of integration of complementary resources and learning processes, which result in the construction of new capabilities that feed the further growth of the company.

This work presents a review of the state of the art of the present century on academic and scientific production in Latin America related to the concept of Social Innovation. The analysis is based on articles published in indexed journals, which makes it possible to understand the existing asymmetry between the conceptual and theoretical veins, of the case studies, as well as of good social innovation practices that have been published in recent years. These debates have in some cases transcended public policies, as well as business and social realities where social innovation is a mechanism and strategy for personal, social, and territorial development. Finally, a Latin American community of researchers and academics around social innovation must be consolidated, who choose to continue building theoretical-empirical bodies following the Latin American reality.

This chapter considers the process of entrepreneurial activity to deploy financial technologies (fintech) through mandate-specific new companies in Latin America. We deal with important historical issues such as defining the term, establishing temporal and industrial activity boundaries, positioning this particular process within other organizational forms typical of the region, the role of women, and other relevant issues such as the modernization of retail payments and personal lending. A central question is whether fintech start-ups have had a “scissor” effect in the entrepreneurial process of Latin America: at the base of the pyramid (i.e., reducing frictions to support overall entrepreneurial activity, increasing financial inclusion, etc.) and near the top (by creating new business leaders). As a result, this chapter provides an initial assessment of gender disparities and barriers enabling women entrepreneurs in the fintech ecosystem.

This chapter provides an introduction to the Global Entrepreneurship Monitor (GEM), a project under Latin America and the Caribbean (LAC) regional approach. As a region, the countries of LAC correspond to the second-highest representation in GEM after Europe. The chapter describes the GEM project, summarizes some key longitudinal indicators for the region, and analyzes the contributions and importance of GEM project for the systematic study of entrepreneurship.

The chapter analyzed the conditions and challenges of entrepreneurship in Latin America. Looking at different stages of the Latin American context (ancient civilizations, postindependence/revolutions movements, neoliberalism), we argue that entrepreneurship in the region is under a fourth wave (the present globalization/geopolitical processes), flowing all across the region and manifests itself in different forms. Furthermore, it can be identified as a breaking point from the almost linear importation of Western positions, and proposing must be analyzed under a new perspective, where the future should be built around the different facets, positives and negatives, each of the waves had plunged into our societies. It is highlighted that new positions can be originated, and regional theories and methods can give a fresh, deep transformation and more precise understanding of Latin America in the present era, enriching the public policies in its diverse territories. The chapter invites to make a critical reflection to unleash entrepreneurship in the region, a millennial potential.

Although scarce in the literature of entrepreneurship, the Aztec and Mayas (as well as the Incas), two of the most important civilizations in ancient Latin America, are considered by us as entrepreneurs. This is our departing point for understanding where entrepreneurship was born and built in Latin America. Unfortunately, its indigenous communities still are far behind in terms of labor, quality of life, poverty, and economic opportunities. From the ethnic entrepreneurship theory and after a deep literature review, a model is proposed for our region, a starting point to analyze and understand its processes in our region, thus making an impact on the development of public policies that can ultimately alleviate and improve the condition of this communities, and by going back to its roots, give a clearer picture of the reasons behind the present and future condition of entrepreneurship in Latin America.

This chapter studies how entrepreneurship research has evolved at the Latin American level. Using the database available in the Web of Science Core Collection, a period-by-period bibliometric analysis is carried out to identify possible changes in research trends over time. On the one hand, the results show that in the period 2000–2006, research focuses mainly on rural development, community development and financial resources. On the other hand, in the period 2007–2013, the research priority is related to international entrepreneurship, private capital raising and studies based on the Global Entrepreneurship Monitor (GEM). Finally, during the period between 2014 and 2020, research focused mainly on self-employment, family businesses, promotion of angel investor networks, venture capital, and female entrepreneurship. The results of this study may be of interest to academics, researchers, and policymakers to understand the evolution of this topic in recent decades and to promote entrepreneurship and innovation in the region.

The objective of this study is to review the main studies of social entrepreneurship (SE) in Latin America, to categorize them into four categories. To accomplish this, a bibliometric literature review is carried out based on data from the Web of Science database, to locate the Latin American collection of studies. In this way, the main studies are described and grouped, following a qualitative scheme that allows to substantiate the main findings of the Latin authors. Consequently, the progress made in the literature of the SE for Latin America is corroborated, by visualizing that the SE turns out to be a forceful fact to manage well-being, but that it is faced with an inconsistent development.

COVID-19 has spread so quickly and uninterruptedly that it has put great pressure on the capacities of emerging countries, especially the Latin America area. Its impacts that will have on businesses and entrepreneurs, it can be inferred that the duration of this crisis is still uncertain; thus, the aim on this chapter is to aggregate the current knowledge on how COVID-19 has impacted the entrepreneurship, and their expectations in the short and medium term. We examined 37 articles published between 2020 and 2021. To develop the discussion, we conducted descriptive review including year, affiliation of the first author, type of study, research methods in reviewed papers, and the origin of the empirical sample. We follow our thematic analysis within four broad categories: (1) crisis; (2) digitalization; (3) education; and (4) employment. Our results show that the call to address grand challenges, particularly relate to digitalization, public policies focused on supporting entrepreneurs and education in entrepreneurship in the Latin America context.

The objective of this study focuses on the characterization of the Latin American entrepreneurial profile from a psychological perspective. In order to do this, a journey through time was carried out in the study of the entrepreneurial subject, from the great classics to the contemporary era, the era of knowledge, innovation, technology, and revolution. In the Latin American context, the role of the entrepreneur is limited due to vulnerable institutions, corruption, populism, and socioeconomic inequity. However, the new information and communication technologies constitute an ideal route for growth in the region. The fundamental element is the psychological profile of the entrepreneur, which is made up of a set of personal characteristics, among which innovation, achievement motivation, self-efficacy, moderate propensity for risk, creativity, perseverance, proactivity, flexibility, locus of control stand out, internal, adaptability, responsibility, ability to recognize opportunities, autonomy, commitment, handling problems and managerial skills. Finally, case studies from countries such as Mexico, Peru, and Chile are presented. It is a documentary study which reflects that Latin American entrepreneurs share the same psychological attributes as those who live in developed countries. However, obstacles arising from the lack of environment and public policies are imposed on entrepreneurial activity. The culture of a country and the formative role of education can become limiting or enhancing factors; therefore, it is necessary to bet on beliefs and convictions attached to innovation, which strengthen the psychological attributes of the entrepreneurial spirit.

Taking as reference a sample of around a hundred biographical materials on entrepreneurs in Mexico and Colombia, the purpose of this chapter is dual. Both to show the relevance and varied modalities that the biographical approach has enjoyed in business history research since the 1990s, and to display the intrinsic potential this modality of scholarship entails for entrepreneurship endeavors. In particular, it discusses the prospects to incorporate this body of empirical works into the large Latin American audience attending undergraduate, graduate and executive education programs in business, economic history and related fields. The chapter is organized into three sections. The first two are devoted to illustrate relevant patterns in the entrepreneurial trajectory of individuals and entrepreneurial families studied in each of the two countries under consideration. The last section identifies some conceptual issues that may impact current debates on Latin American business development as exemplified in recent business and economic history journal venues and scholarly conferences.

Throughout centuries, Latin America has faced a paradox. On one hand, the abundance of resources has attracted immigrants who find a suitable place to undertake profitable business ventures in the region. On the other hand, the limited entrepreneurial resources of most countries of the region have motivated the migration of talented people, among them entrepreneurs, to non-Latin American countries. This chapter explores this paradox through the analysis of entrepreneurs' motivations to immigrate to, and migrate from Latin America, the influence of their profile on their business ventures, as well as the role played by both the home and the host countries' institutional conditions. The findings of this analysis underline the diversity of migrant entrepreneurs in terms of personal resources and survival versus opportunity-driven migration decisions. They also reveal the kind of mechanisms migrant entrepreneurs use to counteract their host country's institutional challenges.

Entrepreneurship involves the skills and competencies needed to identify, develop, and exploit opportunities in new or existing ventures. Studies have demonstrated that entrepreneurship can be learned and taught; for this reason, universities and educational institutions have increased the number of courses, concentrations, master programs, majors, and PhD programs, seeking a better impact on their students, graduates, and communities. As the knowledge of entrepreneurship has increased, one of the emerging areas of study is the analysis of the methodologies to accomplish better teaching and learning of entrepreneurship.

This chapter introduces entrepreneurship as a discipline and presents its theoretical evolution and impact on education through different educational approaches: the first approach is related to the entrepreneur; the second to the process; the third focuses on cognition; and the fourth approach, determines the education of entrepreneurship as a method, involving new educational techniques for developing skills through practice, action, and reflection. Then, there is an analysis of how three universities in Mexico, Chile, and Colombia use these teaching approaches in their entrepreneurship programs. Finally, there is a reflection on the new perspectives of entrepreneurship education, the stakeholders involved, and the role that universities, educational institutions, and government play in the transformation of entrepreneurship education.

This chapter analyzes how patterns of political corruption across Latin America influence regional entrepreneurial activity as well as the effectiveness of different solutions that have been proposed to promote entrepreneurial initiatives. For this purpose, the causes of this institutional failure and its influence on the regional entrepreneurial system will be explored under a literature review. This review is used to identify its main issues to propose an analytical framework, based on game theory and social network analysis, to understand the dynamics of the different players involved in the interaction between the corrupt political contexts and the regional entrepreneurial ecosystem. This framework is extended to further analyze several well-known regional corrupt business cases and the suitability of different solutions to revert this failure to foster entrepreneurial initiatives with a positive developmental impact in the region.

From the perspective of business history, this chapter presents an overview of the development of the tourism sector in South America, placing special emphasis on the Peruvian case. The chapter explores various topics related to the tourism chain, such as hotel networks, the role of the state, tour operators, micro- and small enterprises, linkages between tourism and sustainability, the formation of clusters in the sector, and interactions between different entrepreneurs in the chain. Special emphasis is placed on the Peruvian case, especially when it comes to discussing the role of micro- and small enterprises in the sector.

All family businesses face an inescapable succession process. Succession means the process by which a family business is transferred from one generation to the next, involving most of the members of the family business, either directly or indirectly. There is an extensive literature that deals with the study of successions. In Latin America, work on family businesses stands out, although from business history the analysis of successions for this region is still scarce. This chapter aims to highlight the progress in this arena and help fill the gaps with a brief review of the main theories and debates about succession in family business. In addition to a summary of the main findings for the Latin American countries, we propose some elements for a theoretical and methodological debate in Latin America.

Entrepreneurship is a key factor in the growth of regions, given its impact on innovation and job creation. The relationship between start-up companies and their environment is closely linked to negotiation mechanisms since the formation of trust, the governance structure, and how entrepreneurs protect themselves from adverse situations depend on them. However, no single framework can bring together the bargaining, entrepreneurship, and institutional factors that determine the success or failure of start-ups. The objective of this chapter is to jointly analyze bargaining and entrepreneurship through the theory of economic institutionalism, Transaction Cost Theory, and Cognitive Organization Theory. To this end, an analytical scheme is proposed that brings together these precepts applied theoretically to the Latin American case. The scope is to provide a novel framework of analysis by incorporating essential institutional elements for negotiation, such as contracting, governance, organizational structure, trust, relational risks, and hedging against opportunism.