Business Performance in The Post-Startup Phase: The Case of LATAM For-Profit Ventures Participating in Accelerator Programs

Abstract

 This study aims at a more systematic understanding of the critical factors, based on Sharir & Lerner’s (2006) framework, that exert influence over the probabilities of performance development of For-Profit Ventures participating in accelerator programs worldwide, and specifically in the LATAM Region. Using an Ordinal Logit Regression Model on secondary data from a multipurpose survey over a sample of startups in more than 170 countries, the positive effects of such factors were first tested, and differential behaviour was sought, in ventures operating in the LATAM Region. Even though most of the factors accounted for in the framework were validated in the general sample and their effects were quantified, differential behaviour due to socio-economic and geographic conditions was found in the region; the most striking result revolved around the statistically confirmed notion that LATAM ventures have learned to operate in underprivileged conditions. Conclusions are drawn in support of harmonized for-profit entrepreneurship promotional programs and the adoption of standardized impact measurement criteria in order to improve the access to outside-funds. This argument raises ample academic and practical possibilities for investigating the impact of socio-economic and cultural influences on the efficacy of entrepreneurial support mechanisms. This study contributes to the literature by providing more empirical research about performance development in newly created for-profit ventures and the effectiveness of global accelerator programs.