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The research aims to applying Baumol’s framework to address some research gaps in the literature. This paper aims to analyze how institutional variations at the subnational level impact entrepreneurship decisions and the path toward productive or unproductive entrepreneurship in an institutionally underdeveloped country. The results offer potentially new theoretical insights and practical implications for developing or emergent countries.

The research applies Baumol’s framework to Mexico’s context. The research collects data compounded by individual- and state-level variables from diverse sources for the 32 Mexican states. The individual level and some controls were obtained from sources of regular frequency, but the institutional variables were derived from surveys of irregular frequency, nonsynchronic and mostly nonoverlapping, which required aligning and centered them around 2016 and 2019 to match with the individual variables. The authors apply multilevel nonlinear mixed-effects probit regression to test nine hypotheses regarding the impact of institutional variables on entrepreneurial decisions and the path toward productive or unproductive entrepreneurship.

Improved formal institutions across the Mexican states reduce the entrepreneurship probability, implying interactions with other variables and indirect effects; encourage the selection of productive entrepreneurship, e.g. formal ventures; and discourage self-employment. Consequently, those institutions do not encourage entrepreneurship selection as an occupation but entrepreneurial quality, i.e. the selection of productive-formal entrepreneurship and larger ventures. Deficient informal institutions increase the entrepreneurship and formal entrepreneurship probabilities, implying the interactions with other variables and indirect effects and supporting the corruption “greases the wheels” hypothesis, consequently encouraging productive ventures. New evidence of the positive relationship between criminality and entrepreneurship types in Mexico is reported.

Our findings indicate important impacts of the individual-level variables on the entrepreneurship decisions and that most of those decisions are potentially necessity driven and a minority are driven by opportunity, given their relationship with the macroeconomic controls and the institutional variables. The authors report mixed results on the relationship between institutions and entrepreneurship partially consistent with the literature; some results contribute additional evidence on controversial hypotheses or imply the existence of indirect effects. Overall, the results suggest that institutions impact the individual decisions to venture and the type of venture consequently affecting the amount and quality of entrepreneurship across states.

The research addresses some of the literature gaps by providing empirical evidence on a middle-income country and how diverging regional institutional contexts, including formal and informal institutions, impact the individual’s entrepreneurship decisions within an institutionally underdeveloped country. The paper contributes new knowledge and insights into entrepreneurship in emerging or developing countries with implications for Baumol’s framework in this context and adds to the debated hypothesis on the relationship between some institutions, e.g. corruption and criminality and entrepreneurship.

The legitimacy of history: dictated Bloch. Today, in many areas of knowledge, and of course in entrepreneurship (Wadhwani, 2010), it has become superlative. The aim of this chapter is analyzing the literature about entrepreneurship in Mexico mainly from the last 11 years of studies on the subject. Through this review, we want to highlight the progress in the field, as well as deeper opportunities in its research as a result of it, the profound need for incorporating them not only in the national academic debate but also into the entrepreneurship ecosystem and in specific public policies.

The purpose of this paper is to determine the prevalence of economic violence against women, specifically in formal sector micro-firms managed by women in Peru, a key Latin American emerging market. Additionally, the authors have identified the demographic characteristics of the micro-firms, financing and credit associated with women who suffer economic violence.

In this study, a structured questionnaire was administered to a representative sample nationwide (357 female micro-entrepreneurs).

The authors found that 22.2 percent of female micro-entrepreneurs have been affected by economic violence at some point in their lives, while at the same time 25 percent of respondents have been forced by their partner to obtain credit against their will. Lower education level, living with one’s partner, having children, business location in the home, lower income, not having access to credit, not applying credit to working capital needs, late payments and being forced to obtain credit against one’s will were all factors associated with economic violence. Furthermore, the results showed a significant correlation between suffering economic violence and being a victim of other types of violence (including psychological, physical or sexual); the highest correlation was with serious physical violence (r=0.523, p<0.01).

A limitation of this study is that the authors measured economic violence only in terms of misappropriation or theft of funds from the business, but not in terms of exacting control over economic resources, which can be a way of depriving the micro-entrepreneur of her autonomy in the management of the business.

The authors hope that the findings and conclusions reported here might open a renewed debate among academia, financial service providers, micro-firms, civil society and the public sector, providing a conceptual framework and a starting point to design effective, integrated and inter-sectoral prevention efforts.

The authors recommend that efforts to reduce intimate partner violence be strengthened, taking into account the issue of gender inequality. It is not sufficient that social policy solely be designed to eliminate violence.

Previous research on gender violence has tended to examine the nature and causes of psychological, physical and sexual violence; this study, however, intends to contribute to the understanding of economic gender violence in the context of formal sector small business in a Latin American emerging market.