Abstract
Analysing the behaviour of entrepreneurs from low income regions we noticed that their entrepreneurial actions do not follow traditional prescriptions. Despite of that, a solid entrepreneurial activity is found on those communities, such as Rocinha, one of the largest favela in Rio de Janeiro, and keeps a success rate above expectation.
This article reveals the preference for a type of rationality different from what is normally recognized as “business”, but quite similar to the theory developed by Saras Sarasvathy, defined as “effectual reasoning”. This theoretical framework is applied to an empirical study on the profile of entrepreneurs in Rocinha. One key element identified in our analysis is the power of stakeholder’s commitment, driven by a very strong influence of the social environment on entrepreneurial activity.
Our findings may have important consequences for public policies if they prove to be more effective in other cases beyond Rocinha. It would then be reasonable to suggest that it could be waste of resources attempting to impose a general formula of “best practices” for success on entrepreneurship in the “pacified” favelas of Rio de Janeiro.
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Pereira, I.N., Bartholo, R. (2015). Entrepreneurship in Rocinha: A Non Goal-Driven Activity. In: Lèbre La Rovere, R., de Magalhães Ozório, L., de Jesus Melo, L. (eds) Entrepreneurship in BRICS. Springer, Cham. https://doi.org/10.1007/978-3-319-11412-5_10
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