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Improving Entrepreneurial Competency in Low-Income Segments: The Impact of Entrepreneurial Development Agents

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Part of the book series: International Studies in Entrepreneurship ((volume 29))

Abstract

Micro-enterprises, with fewer than ten employees, are responsible for most new jobs in emerging economies. Unfortunately, low-income entrepreneurs frequently lack enough entrepreneurial competency to survive and expand. The research presented in this chapter aims to evaluate the importance of entrepreneurial development agencies at the base of the pyramid. Structural equation modelling with survey data from enterprises participating in an entrepreneurship education process in Mexico provides evidence of the positive and significant impact of entrepreneurial development agencies on performance, with the mediating effect of market-product innovation and market orientation.

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Correspondence to René Díaz-Pichardo .

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Appendix 10.1 Items Included in the Statistical Analysis

Appendix 10.1 Items Included in the Statistical Analysis

Note that this is a translation; the survey was administered in Spanish.

Using a scale between 1 and 10 where 10 means you are completely satisfied and 1 you are completely unsatisfied, select the number that corresponds to your level of satisfaction for each of the following topics:

1.1 Performance

To what extent are you satisfied with your life as a whole?

Ditto your standard of living?

Ditto being part of a community?

To what extent are you satisfied with the performance of your business in terms of sales?

Ditto profit margins?

Ditto return on investment?

Using a scale between 1 and 10 where 10 means you completely agree with the statement and 1 you completely disagree, select the number that corresponds with your personal position.

1.2 Entrepreneurial Competency

In the last 3 years, we have commercialized many new products and services.

In the last 3 years, changes in our products and services have been drastic.

In our firm, we respond quickly to the actions of competitors.

We frequently measure the satisfaction level of our customers.

When we see an opportunity to develop a competitive advantage, we think of specific customers to whom offer our products and services.

1.3 Influence of the EDA

Before the intervention of the social incubator, I had a good idea of how it would affect how my firm worked.

Before the intervention of the social incubator, I had clear expectations about its results.

If we do not apply the techniques learned with the support of the social incubator our firm will suffer negative consequences.

What I’m learning in the social incubator is what my firm needs at the moment.

1.4 Environmental Hostility

The environment in which I run my firm is very risky; a single mistake can make it disappear.

The environment in which I run my firm is very stressful, hostile, and tough, it is difficult to remain in business.

1.5 Infrastructure

The access to roads and transportation facilitates my business operations.

Health services in my community facilitate my business operations.

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Díaz-Pichardo, R., Gutiérrez, N., Arriaga-Múzquiz, J. (2014). Improving Entrepreneurial Competency in Low-Income Segments: The Impact of Entrepreneurial Development Agents. In: Lundström, A., Zhou, C., von Friedrichs, Y., Sundin, E. (eds) Social Entrepreneurship. International Studies in Entrepreneurship, vol 29. Springer, Cham. https://doi.org/10.1007/978-3-319-01396-1_10

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