Impact of Government Policies on Entrepreneurial Activities in Chile
Abstract
The study sought to examine the impact of government policies on entrepreneurial activities in Chile. The research was a literature-based testimonial. The study found that government policy affects the entrepreneurial activities of businesses comprehensively. The government can initiate regulations and policies that guide businesses activities. Some rules, like minimum wage, are mandatory may determine the business's sovereignty. The businesses are expected to bind to the established policies, otherwise, they will be considered to act against the law. The government can implement a policy that changes the social behavior in the business environment. The government can underwrite the development of new technology that will bring the necessary change. Imposing on a particular sector more taxes or duties than are necessary will make the investors lose interest in that sector. Similarly, tax and duty exemptions on a particular sector trigger investment in it and may generate growth. The study concluded that its government policy affects the entrepreneurial activities of the businesses fabulously. The provision of financial resources to entrepreneurs is among the most prominent methods of promoting entrepreneurship in countries around the world. Additionally, the study concluded that even if the regulative setting toward entrepreneurship may arise reasonably quickly, it will take a longer time for understanding and business abilities to become widely dispersed in society, as well as the efforts to change the perspectives of society towards adoration of entrepreneurs will certainly be slower. The study also concluded that the existence of the CORFO program which runs under InnovaChile is accountable for supporting innovation in the country and also offering the entrepreneurs thinking about beginning their business in Chile. The study concluded that FOSIS and CORFO programs are promoting entrepreneurship activities in Chile given that they shield the infant entrepreneurs from well-established business units. The study recommended that the government policy need to be friendly to the business for them to expand. The government can work to offer a favorable environment that legitimizes entrepreneurship as a reputable occupation in their domestic economy. The study recommended that the tax level to the businesses need to be maintained low. There should be tax-exempts among the starting or growing businesses. The government plans need to be much more active in the promotion of entrepreneurship training as well as in the reinforcement of the role that universities, incubators and also entrepreneurship facilities. The FOSIS and CORFO programs which promote entrepreneurial activities ought to be backed up by the government through being offered the adequate resources which they require.
Keywords: Government Policies, Entrepreneurial Activities, Chile
References
Ahmad, S. Z., & Xavier, S. R. (2018). Entrepreneurial environments and growth: evidence from Malaysia GEM data. Journal of Chinese Entrepreneurship, 4(1), 18-34
Altenburg, T., & Meyer-Stamer, J. (2018). How to promote clusters: policy experiences from Latin America. World development, 27(9), 1693-1713.
Avnimelech, G., & Teubal, M. (2020). From direct support of business sector R&D/innovation to targeting venture capital/private equity: a catching-up innovation and technology policy life cycle perspective. Economics of Innovation and New Technology, 17(1-2), 153-172.
Boylan, D. M. (2021). Taxation and transition: The politics of the 1990 Chilean tax reform. Latin American Research Review, 31(1), 7-31.
Brush, C. G., Carter, N. M., Gatewood, E. J., Greene, P. G., & Hart, M. M. (2020). The use of bootstrapping by women entrepreneurs in positioning for growth. Venture Capital, 8(1), 15-31.
Burns, P. (2019). Entrepreneurship and small business. Palgrave Macmillan Limited. Chandra, A., & Medrano Silva, M. A. (2021). Business incubation in Chile: Development, financing and financial services. Journal of technology management & innovation, 7(2), 1-13.
Fogel, G. (2021). An analysis of entrepreneurial environment and enterprise development in Hungary. Journal of Small Business Management, 39(1), 103-109.
Galasso, E. (2020). With their effort and one opportunity: Alleviating extreme poverty in Chile. Unpublished manuscript, World Bank, Washington, DC.
García, N., Grifoni, A., López, J. C., & Mejía, D. (2020). Financial education in Latin America and the Caribbean: Rationale, overview and way forward.
Harima, A., Harima, J., & Freiling, J. (2021). The injection of resources by transnational entrepreneurs: towards a model of the early evolution of an entrepreneurial ecosystem. Entrepreneurship & Regional Development, 33(1-2), 80-107.
Isenberg, D. (2021). The entrepreneurship ecosystem strategy as a new paradigm for economic policy: Principles for cultivating entrepreneurship. Presentation at the Institute of International and European Affairs, 1(781), 1-13.
Kantis, H. D., & Federico, J. S. (2017). Entrepreneurship policy in Latin America: trends and challenges. In Government, SMEs and Entrepreneurship Development (pp. 75-90). Routledge.
Klerkx, L., Álvarez, R., & Campusano, R. (2019). The emergence and functioning of innovation intermediaries in maturing innovation systems: the case of Chile. Innovation and Development, 5(1), 73-91.
Lazzarini, S. G. (2019). Strategizing by the government: Can industrial policy create firm‐level competitive advantage?. Strategic Management Journal, 36(1), 97-112.
Leebaw, B. A. (2018). The irreconcilable goals of transitional justice. Hum. Rts. Q., 30, 95.
Michael, S. C., & Pearce, J. A. (2019). The need for innovation as a rationale for government involvement in entrepreneurship. Entrepreneurship and Regional Development, 21(3), 285-302.
Ndou, V. (2018). E–Government for developing countries: opportunities and challenges. The electronic journal of information systems in developing countries, 18(1), 1-24.
Romaní, G., Atienza, M., & Amorós, J. E. (2019). Financing entrepreneurial activity in Chile: scale and scope of public support programs. Venture Capital, 11(1), 55-70.
Spencer, J. W., & Gómez, C. (2019). Can government policies promote entrepreneurship? Evidence from Costa Rica, Uruguay and Chile. The Center for Latin American Issues. Working Paper Series, The George Washington University. http://www. gwu. edu/~clai/working_papers/Spencer_ Jennifer_09-01. pdf [Accessed March 29, 2012].
Storey, D. J. (2021). Entrepreneurship, small and medium sized enterprises and public policies. In Handbook of entrepreneurship research (pp. 473-511). Springer, Boston, MA.
Teichman, J. A. (2020). The politics of freeing markets in Latin America: Chile, Argentina, and Mexico. Univ of North Carolina Press.
Tesfom, G., & Lutz, C. (2020). A classification of export marketing problems of small and medium sized manufacturing firms in developing countries. International Journal of Emerging Markets.
Urbano, D., & Alvarez, C. (2021). Institutional dimensions and entrepreneurial activity: an international study. Small business economics, 42(4), 703-716.
Van Stel, A., Storey, D. J., & Thurik, A. R. (2018). The effect of business regulations on nascent and young business entrepreneurship. Small business economics, 28(2), 171-186.
Verner, J. M., Babar, M. A., Cerpa, N., Hall, T., & Beecham, S. (2019). Factors that motivate software engineering teams: A four country empirical study. Journal of Systems and Software, 92, 115-127.
