In an article published in Sustainability journal, EGADE professor examines the moderating effect that household income on entrepreneurs' motivations and their growth aspirations.

By JOSÉ ÁNGEL DE LA PAZ | EGADE BUSINESS SCHOOL

Policies focused on supporting entrepreneurs motivated by opportunity rather than necessity can favorably pave the way to grow high-impact entrepreneurship in Mexico.

These are the observations of professor Pedro Carreón, EGADE MBA Program Director at the Guadalajara site of EGADE Business School, in an article coauthored with professor José Manuel Saiz and published in the scholarly journal Sustainability.

With data from the Global Entrepreneurship Monitor, the researchers examine the moderating effect of household income on the relationship between entrepreneurs’ opportunity motivations and their growth aspirations.

These entrepreneurs are more likely to grow to the level of their high aspirations, since they capitalize on the stimulus offered by their main motivations, to obtain increased revenues and independence, and often turn to household income for support.

On the other hand, since entrepreneurs driven by necessity, they commented, normally have low motivations and less access to capital, their growth aspirations are limited.

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Given the relationship between motivations and aspiration rates, the academics suggest that entrepreneurship policies which pay attention to enhancing the aspirations of entrepreneurs will be more profitable.

“In Mexico, entrepreneurship policies are shifting their focus from seeking to increase the number of entrepreneurs to improve the quality of entrepreneurship,” they noted.

High-impact entrepreneurs usually have the aforementioned high aspirations for their businesses and, therefore, ultimately make a significant contribution to the country’s employment creation and economic growth, they conclude.

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Their research, titled Opportunity Motivation and Growth Aspirations of Mexican Entrepreneurs: The Moderating Role of the Household Income, can be viewed here.

Saiz formerly served as a professor at EGADE Business School and is currently a researcher at Centro de Estudios Enzo Faletto of Universidad de Santiago de Chile.

Both professors also coauthored the article Product Newness, Low Competition, Recent Technology, and Export Orientation as Predictors for Entrepreneurial Growth Aspirations, published in Sustainability and available here.

Sustainability is an international, interdisciplinary open access journal on environmental, cultural, economic and social sustainability, published fortnightly by MDPI.