Exploring Entrepreneurial Activity and Potential in Puerto Rico: Evidence from the Global Entrepreneurship Monitor

Abstract

The purpose of the study is to explore early stage entrepreneurial activity and potential in Puerto Rico. Using concepts from the literature on entrepreneurial intentions and behavior, we examine differences between potential entrepreneurs (individuals who manifest intentions to create a business), total early stage entrepreneurial activity (individuals actively pursuing entrepreneurship) and the general population. Differences between groups are presented in terms of attitudes towards entrepreneurship and other exogenous variables (education, age, prior exposure, among others) suggested by the literature on planned behavior. Also a description of the state of entrepreneurial activity in the region is provided. The analysis was conducted using data from the Global Entrepreneurship Monitor, international research program that monitors entrepreneurial activity of regions, specifically the Adult Population Survey 2007 (APS) for the Puerto Rico region. The APS considered a random sample of 2000 adults (ages 18-64) in Puerto Rico. The differences between groups - individuals who have entrepreneurial intentions and individuals who do not have the intention of creating a business - were analyzed using quantitative methodology, specifically Analysis of Variance (ANOVA). Entrepreneurial activity prevalence rates are summarized using descriptive statistics based on the Global Entrepreneurship Monitor definitions: nascent entrepreneurship rate, new business ownership rate, established business ownership rate and total early stage entrepreneurial activity. The results of this study, although descriptive, suggest several research implications and provide the baseline to establish context specific initiatives to promote entrepreneurship and economic development in the region.