Innovative Self-concept of Micro-entrepreneurs: Perception of Barriers and Intention to Invest

Verdugo, Gustavo Alfonso Barrera

doi:10.1590/1807-7692bar2018170085

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Articles • BAR, Braz. Adm. Rev. 15 (2) • 14 May 2018 • https://doi.org/10.1590/1807-7692bar2018170085 copy

Innovative Self-concept of Micro-entrepreneurs: Perception of Barriers and Intention to Invest

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

The research presented below examines micro-entrepreneur conditions that relate to their innovative self-concept and the effect of this self-concept on the perception of barriers to entrepreneurship and intention to invest in assets. For this, I analyzed 5,836 surveys completed by Chilean micro-entrepreneurs who declared maintaining productive activities in 2015. The results show that there is a difference in innovative self-concept, depending on the age, gender, marital status and educational level of the entrepreneurs. Moreover, this showed that entrepreneurs that self-define themselves as innovators intend to invest and perceive barriers to entrepreneurship in a different way. The obtained evidence is relevant for guiding public policies that strengthen investment and for reducing micro-entrepreneurs' perceived barriers according to their individual characteristics. Additionally, the results could be considered in other emerging Latin American countries, with similar conditions.

Key words:
self-concept; barriers to entrepreneurship; investment in assets; characteristics of the entrepreneur

	Answer alternatives
Age	Open answer
Gender	1= Man, 0=Woman
Primary or lower education	Yes=1, No=0
Secondary education	Yes=1, No=0
Tertiary education	Yes=1, No=0
Participation in training	Yes=1, No=0
Married	Yes=1, No=0
Single	Yes=1, No=0
Cohabitant	Yes=1, No=0
Divorced	Yes=1, No=0
Separated/annulled	Yes=1, No=0
Widower	Yes=1, No=0

Barriers to entrepreneurship development	Measurement range	Entrepreneur self-perception	Entrepreneur self-perception
Lack of customers	Most important factor. Dichotomous: yes / no	Innovative self-concept	Do you consider yourself innovative? Dichotomous: yes / no
Lack of supplies
Lack of financing
Lack of skilled workers
High cost of hiring new employees
High cost of regulations or legal norms
High cost of regulations or legal norms
High tax rate
Uncertainty about the state of the economy
Do not believe that there are factors that impede the growth of business	Dichotomous: yes / no
Intends to invest or buy assets in the next 12 months	Dichotomous: yes / no

	n=5836		n=5836		n=5836
	Prob > chi2=0.000		Prob > chi2=0.000		Prob > chi2=0.000
	Odds ratio	P>\|z\|	Odds ratio	P>\|z\|	Odds ratio	P>\|z\|
Gender	0.844	0.023^ p < .05,	0.837	0.017^ p < .05,	0.876	*0.078^ * p <.10,**
Age	0.978	0.000^* ***** p < .001.	0.977	0.000^* ***** p < .001.	0.977	0.000^* ***** p < .001.
Primary Education	0.817	0.013^ p < .05,
Secondary Education	0.961	0.697	1.117	0.261
Tertiary Education			1.265	0.010^ p < .05,
Training					1.664	0.000^* ***** p < .001.
Divorced	2.157	0.022^ p < .05,	2.184	0.019^ p < .05,	2.211	0.018^ p < .05,
Cohabitant	1.188	*0.087^ * p <.10,**	1.199	*0.071^ * p <.10,**	1.192	*0.081^ * p <.10,**
Constant	17.967	0.000	16.352	0.000	15.547	0.000

Innovative self-concept
Characteristics of the micro-entrepreneur		Self-perceived As an innovator = No	Self-perceived As an innovator = Yes	Pr Chi² /F	Conclusion
Gender	Woman	328	1831	0.004 ^* ***** p < .001.	Greater with female gender
Gender	Man	667	3010	0.004 ^* ***** p < .001.	Greater with female gender
Primary or lower education	No	603	392	0.000 ^* ***** p < .001.	Smaller with Primary education
Primary or lower education	Yes	3353	1488	0.000 ^* ***** p < .001.	Smaller with Primary education
Secondary education	No	836	159	0.979	Without significant difference
Secondary education	Yes	4069	772	0.979	Without significant difference
Tertiary education	No	800	195	0.000 ^* ***** p < .001.	Greater with Tertiary education
Tertiary education	Yes	3602	1232	0.000 ^* ***** p < .001.	Greater with Tertiary education
Training	No	844	151	0.000 ^* ***** p < .001.	Greater with training
Training	Yes	3667	1174	0.000 ^* ***** p < .001.	Greater with training
Married	No	474	521	0.033 ^ p < .05,	Smaller in Married
Married	Yes	2486	2355	0.033 ^ p < .05,	Smaller in Married
Single	No	803	192	0.906	Without significant difference
Single	Yes	4702	1134	0.906	Without significant difference
Divorced	No	985	10	0.015 ^ p < .05,	Greater in Divorced
Divorced	Yes	4735	106	0.015 ^ p < .05,	Greater in Divorced
Cohabitant	No	853	142	0.002 ^ p < .05,	Greater in cohabiting
Cohabitant	Yes	3951	890	0.002 ^ p < .05,	Greater in cohabiting
Separated /annulled	No	917	78	0.745	Without significant difference
Separated /annulled	Yes	4476	365	0.745	Without significant difference
Widower	No	943	52	0.035 ^ p < .05,	Greater in Divorced
Widower	Yes	4658	235	0.035 ^ p < .05,	Greater in Divorced
Age average		54.63	50.07	0.000 ^* ***** p < .001.	Smaller age with innovative self-concept

Innovative self-concept
		Self-perceived as an innovator= No	Self-perceived as an innovator= Yes	Pr Chi²
Do not believe that there are factors that impede the growth of their business	No	800	4264	^* ***** p < .001. 0.00	Smaller in entrepreneurs with innovative self-concept
	Yes	195	577	^* ***** p < .001. 0.00	Smaller in entrepreneurs with innovative self-concept
Want to buy assets or invest in the next 12 months	No	698	264	^* ***** p < .001. 0.00	Greater in entrepreneurs with innovative self-concept
Want to buy assets or invest in the next 12 months	Yes	2394	2242	^* ***** p < .001. 0.00	Greater in entrepreneurs with innovative self-concept

Innovative self-concept
Most important barrier for the development of micro-enterprise		Self-perceived as an innovator = No	Self-perceived as an innovator = Yes	Pr Chi²	Conclusion
Lack of customers	No	674	3593	^* ***** p < .001. 0.000	Minor with innovative self-concept
Lack of customers	Yes	321	1248	^* ***** p < .001. 0.000	Minor with innovative self-concept
Lack of financing	No	832	3467	^* ***** p < .001. 0.000	Major with innovative self-concept
Lack of financing	Yes	163	1374	^* ***** p < .001. 0.000	Major with innovative self-concept
Lack of supplies	No	946	4521	^ p < .05, 0.047	Major with innovative self-concept
Lack of supplies	Yes	49	320	^ p < .05, 0.047	Major with innovative self-concept
Lack of trained workers	No	976	4686	^ p < .05, 0.029	Major with innovative self-concept
	Yes	19	155
	Yes	17	106
High cost of hiring new employees	No	978	4735	0.336	Without significant difference
High cost of regulations Or legal rules	No	974	4722	0.514	Without significant difference
High cost of regulations Or legal rules	Yes	21	119	0.514	Without significant difference
High tax rate	No	962	4703	0.427	Without significant difference
High tax rate	Yes	33	138	0.427	Without significant difference
Uncertainty about the state of the economy	No	937	4482	*^ * p <.10, 0.077**	Minor with innovative self-concept
Uncertainty about the state of the economy	Yes	58	359	*^ * p <.10, 0.077**	Minor with innovative self-concept

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[1] Gustavo Alfonso Barrera Verdugo

Universidad Tecnológica de Chile INACAP, Dirección de Postgrados, Avenida del Valle Norte, 819, Piso 5, Huechuraba, Santiago, Región Metropolitana, 8580702, Chile. E-mail address: gbarrera@inacap.cl. https://orcid.org/0000-0002-4488-259X