Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

Factors that determine the formal entrepreneurship of young entrepreneurs in a developing country during a pandemic: Peruvian case

Author(s): Elizabeth Emperatriz Garcia-Salirrosas, Maria Jeanett Ramos-Cavero & Erika Lizbeth Moza-Villalobos

Although informal entrepreneurship helps create jobs, stimulates innovation and reduces inequality; This type of entrepreneurship generates tax evasion, low wages, poor working conditions, low productivity and low economic growth, so the objective of this study was to determine the factors that determine formal entrepreneurship in young entrepreneurs. conducted a study at a private university in Lima, surveying business students. A non-probability sampling was applied for convenience, since the students participated voluntarily. The sample consisted of 809 business students who answered a questionnaire online hosted on Google form. The data were analyzed with the ANOVA, Pearson and Rho Speraman statistics according to the normality of the data. The results show that there are factors that are related to the formal entrepreneurship of young entrepreneurs, such as: gender, formalization procedures, bank loans, loans from lenders, government programs, the pandemic, the conditions of the entrepreneurship, the experience of the company and the initial investment. This study has theoretical and practical implications since it allows us to know the factors that can be useful to promote formal entrepreneurship from both the public and private sectors.

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