Perceptual Variables and Nascent Entrepreneurship in Selected Latin American Countries.

Abstract Purpose: Provide empirical evidence of the impact of perceptual variables and beliefs on a person's decision to join or not to join the group of nascent entrepreneurs. Methodology: Logistic regression applied to the most recent data from nine Latin American countries available in the 2018 GEM survey. Following existing literature, we interconnect perceptual variables with control variables in the form of sociodemographic characteristics. Results: New entrepreneurs tend to depend more on subjective perceptions than on sociodemographic variables. Evidence suggests that having the confidence of possessing the necessary knowledge and skills plus knowing a model entrepreneur are inseparable variables with the greatest impact on the decision to become an entrepreneur. Our results also suggest that entrepreneurial knowledge does not necessarily originate from formal classroom education, as this variable was found to be not significant in the model. This supports the hypothesis that confidence in one's knowledge and abilities result from the contact with other entrepreneurs who serve as role models, instructors and mentors, which is consistent with Social Learning Theory.