| Abstract: |
We report the results of a new survey on entrepreneurship in Brazil. In
September 2006, we interviewed 400 entrepreneurs and 550 non-entrepreneurs of
the same age, gender, education and location in 7 Brazilian cities. The data
are used to test three competing hypotheses on entrepreneurship: the role of
economic and legal institutions (security of property rights; access to
credit); the role of sociological characteristics (family background, social
networks); and the role of individual features (attitude towards risk, I.Q.,
self-confidence) in becoming an entrepreneur. In line with our previous
research in China and Russia, we find that sociological characteristics have
the strongest influence on becoming an entrepreneur. In contrast, success as
an entrepreneur is primarily determined by the
individualÃÂâÃÂÃÂÃÂÃÂs smartness and higher education in the
family. Entrepreneurs are not more self-confident than non-entrepreneurs; and
overconfidence is bad for business success. |