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Latin America is a region of paradoxes. Enormous reserves of natural resources have enabled the creation of industries that positively impact development in many countries of the region. Moreover, doing business across national borders is easy given that there are few language and religious barriers. Furthermore, the region is not prone to many con...
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Citations
... Over the medium/long term, Chile has a dynamic income growth trajectory and is one of the very few economies that managed to shift from a medium-to a high-income group of countries. 3 Yet, sustained development is accompanied by multiple societal and economic challenges (Amorós, Maribel, and Naranjo-Priego 2020). Despite being one of the most prosperous open markets in Latin America, Chile represents a challenging societal, political, economic, and natural disaster-prone environment (Macpherson et al. 2021). ...
We posit that the quality of information and communication technology (ICT) infrastructure and the effectiveness of crisis-specific policy response are essential for entrepreneurial growth aspirations during major external shocks. Enhancing the quality of ICT infrastructure is a relevant strategy for building ecosystems that are resilient to multiple types of crises. It enhances entrepreneurs' growth ambitions during the crisis, and makes them less reliant on crisis-specific response policies adopted by governments. We provide empirical support for this, utilizing Global Entrepreneurship Monitor (GEM) data from the pandemic period in Chile.
... Epidemics may also influence entrepreneurial creation as would-be entrepreneurs respond to disasters by creating novel markets (Sarasvathy et al. 2003;Amorós et al. 2020;D'Adda et al. 2020;Nordhagen et al. 2021). For example, in the current pandemic, entrepreneurs came to the rescue to fight loneliness and other mental health issues related to isolation (https:// www. ...
... In this case, entrepreneurs might not be able to even function, at least in the formal sector of the economy unless they were able to successfully convince the government that their work was essential. Indeed, recent single country studies by Amorós et al. (2020), Bosma and Hart (2020), D'Adda et al. (2020), Fairlie (2020), Guelich and Takahashi (2020), Josty et al. (2020), and Bartik et al. (2020) suggest that business establishments have experienced a decrease in operations during the coronavirus pandemic. 2 Accordingly, the above discussion suggests that the impact of disease epidemics on entrepreneurial activity is not clear a priori. ...
This study addresses a unique angle by examining an under looked determinant of entrepreneurship related to disease epidemics. In times of natural disasters, such as disease epidemics, new demands emerge that might promote entrepreneurship. Using data on a large cross section of countries, we empirically test whether and to what extent the incidence and severity of disease epidemics affect the prevalence of entrepreneurship. The results show that both the occurrence and severity of epidemics spur entrepreneurial activity. These results highlight a potentially important role served by entrepreneurs in responding to biological disasters. Our findings withstand a series of robustness checks.
