2023
632
30042021
11102022
Neida Albornoz-Arias neida.albornoz@unisimon.edu.co
Universidad Simón Bolívar, Colombia
Akever-Karina Santafé-Rojas akever.santafe@unipamplona.edu.co
Universidad de Pamplona, Colombia
ABSTRACT: The study analyzes the entrepreneurial attributes of Venezuelan migrants settled in Gramalote (Norte de Santander Department, Colombia) that explain the perception and ability to seize opportunities (as a dependent variable) and the sociodemographic and contextual characteristics (independent variables). The research adopted a positivist paradigm and a quantitative approach to obtain data from a survey conducted with 88 Venezuelan migrants. A bivariate analysis was carried out for data processing, and the categories of variables were grouped to be treated statistically using multinomial logistic regression. It is recommended that public policies on migration for the inclusion of Venezuelan entrepreneurs in Colombia consider the following entrepreneurial attributes: educational level, employment generation, efficiency and quality, compliance and responsibility, information seeking, and support networks since these attributes are associated with the likelihood of perception and capacity to seize business opportunities.
Keywords: Entrepreneurial attributes, entrepreneurship, venezuelan migrants, support networks, business opportunities.
RESUMEN: El estudio analiza los atributos emprendedores en migrantes venezolanos asentados Gramalote, Departamento Norte de Santander, Colombia que explican la percepción y habilidad para aprovechar oportunidades (como variable dependiente) y las características sociodemográficas y de contexto (variables independientes). Se adoptó un paradigma positivista y enfoque cuantitativo. Los datos provienen de una encuesta aplicada a 88 migrantes venezolanos. Para el tratamiento de los datos se realizó un análisis bivariado y se agruparon las categorías de las variables para ser tratadas estadísticamente mediante una regresión logística multinomial. Se recomienda que las políticas públicas sobre migración, para la inclusión laboral en Colombia, consideren los siguientes atributos de los emprendedores venezolanos: nivel educativo, generación de empleo, eficiencia y calidad, cumplimiento y responsabilidad, búsqueda de información y persuasión, y redes de apoyo porque están asociados con la probabilidad de percepción y capacidad para aprovechar oportunidades de negocio.
Palabras clave: Atributos emprendedores, emprendimiento, migrantes venezolanos, redes de apoyo, oportunidades de negocio.
RESUMO: O estudo analisa os atributos empreendedores dos migrantes venezuelanos instalados em Gramalote, Departamento do Norte de Santander, Colômbia, que explicam a percepção e a capacidade de aproveitar as oportunidades (como variável dependente) e as características sociodemográficas e contextuais (variáveis independentes). Foram adotados um paradigma positivista e uma abordagem quantitativa. Os dados vieram de uma pesquisa com 88 migrantes venezuelanos. Para o processamento de dados, foi realizada uma análise bivariada, e as categorias de variáveis foram agrupadas para serem tratadas estatisticamente por meio de regressão logística multinomial. Recomenda-se que as políticas públicas sobre migração, para inclusão de empreendedores venezuelanos na Colômbia, considerem os seguintes atributos: nível educacional, geração de emprego, eficiência e qualidade, conformidade com normas e responsabilidade, busca de informação e persuasão, e redes de apoio. Esses atributos são recomendados por estarem associados à probabilidade de percepção e capacidade de aproveitar as oportunidades de negócios.
Palavras chave: Atributos empreendedores, empreendedorismo, migrantes venezuelanos, redes de apoio, oportunidades de negócio.
ARTICLES
ENTREPRENEURIAL ATTRIBUTES IN VENEZUELAN MIGRANTS SETTLED IN COLOMBIA
ATRIBUTOS EMPRENDEDORES EN MIGRANTES VENEZOLANOS ASENTADOS EN COLOMBIA
ATRIBUTOS EMPREENDEDORES EM MIGRANTES VENEZUELANOS QUE SE ESTABELECERAM NA COLÔMBIA
Neida Albornoz-Arias neida.albornoz@unisimon.edu.co
Akever-Karina Santafé-Rojas akever.santafe@unipamplona.edu.co
Received: 30 April 2021
Accepted: 11 October 2022
Entrepreneurship refers to thinking, reasoning, and acting when searching for business opportunities. It comprises a set of personal attributes necessary to start a new business (Santafé & Tuta, 2016). According to the literature, entrepreneurs are individuals who seize opportunities that others do not identify. They do not necessarily have the resources to start the business but have the ability to find them (Stevenson & Gumpert, 1985). Individuals who exploit an invention, allocate resources, arrange and organize economic activities in scenarios of uncertainty through innovation – e.g., renting and coordinating land, labor, and capital and buying raw materials – although not being the inventors, investors, or capitalists, are also considered entrepreneurs (Ramírez-Martínez et al., 2018; Schumpeter, 1961). They are motivated by internal (interest, self-determination, independence, security, ambition, reciprocity, reaching a goal) and external factors (economic benefits, monetary payment, recognition, external control) (Antonioli et al., 2016; Carsrud & Brännback, 2011; Eijdenberg & Masurel, 2013; Marulanda et al., 2014; Moreno & Egusquiza, 2017).
Therefore, identifying personal entrepreneurial attributes allows for determining the profile of a successful entrepreneur, an organized person, planner, risk-taker, intelligent, creative, and a leader (Adie-Villafañe & Cárdenas-Ortiz, 2021; Sepúlveda et al., 2017). Regarding the study of entrepreneurship in a specific context, Rauch and Frese (2007) explain the importance of analyzing the sociodemographic characteristics of the community: age, gender, education, place of residence, and social characteristics such as occupation, family situation, and income. For the authors, together with entrepreneurial attributes, these characteristics determine the individual decision to start an enterprise.
However, the issue of immigrants’ entrepreneurial attributes is a topic with no consensus and little explored in the literature. The paths these entrepreneurs go through are unusual. They have particular skills and connections to migratory and international networks, which are elements that add up to the entrepreneurial attributes outlined in the classic literature (Elo et al., 2018). The literature focused on immigrant entrepreneurship or motivation to be an entrepreneur encompasses studies such as Clark and Drinkwater (2010), Gonzalez and Campbell (2018), Levie (2007), Shinnar and Young (2008), and Tienda and Raijman (2004).
Another study on immigrant entrepreneurship worth mentioning is Mazuera-Arias, Albornoz-Arias, Peraza et al. (2019), which examined a sample of 12957 Venezuelan migrants. The authors conducted a survey and found that 86.2% left their country to seek new and better job opportunities, 69.3% left to help their family economically, and 43.3% planned to start their own business in the host country. The study shows that the migrant’s entrepreneurial spirit and the environmental conditions and facilities to start a business are elements that attract migrants to a host country (Eijdenberg & Masurel, 2013). The host country benefits from migration since these entrepreneurs pay taxes, contribute to the social security and pension funds systems, and offer opportunities for self-employment and formal employment, as well as assisting the development of the migrant’s country of origin since individuals send remittances (Elo et al., 2018; Elo & Dana, 2019; Sinkovics & Reuber, 2021).
Therefore, this article focuses on entrepreneurial attributes and internal motivational factors of Venezuelan migrants settled in Colombia. The study considers the characteristics of successful entrepreneurs proposed by McClelland (1961, 1965, 1987) and personal entrepreneurial characteristics portrayed by Bayas (2015), examining drivers that lead individuals to start a business. These attributes were organized into three groups (Figure 1).
The objective of this study was to answer the following research question: What are the entrepreneurial attributes of Venezuelan migrants settled in Gramlote (Norte de Santander Department, Colombia) that explain the perception and ability to seize opportunities?
The null hypothesis (H0) was that there is no significant relationship or association between demographic and contextual factors (entrepreneurial attributes) of Venezuelan migrant entrepreneurs and their perception and ability to seize opportunities. Thus, the alternative hypothesis (H1) was that there is significant evidence of a relationship or association between demographic and contextual factors (entrepreneurial attributes) of Venezuelan migrant entrepreneurs and their perception and ability to seize opportunities.
The study used a quantitative approach and data from a structured survey applied to 88 Venezuelan migrants over 18 years old, entrepreneurs of businesses located in the urban area of Gramalote, Norte de Santander Department, Colombia. The dataset is publicly accessible (Albornoz-Arias & Santafé-Rojas, 2022). Data processing was conducted using descriptive analysis, and a bivariate analysis was performed between the dependent variable “perception and ability to seize opportunities” against eight entrepreneurial attributes proposed in Figure 1. A multinomial logistic regression model was fitted to determine the mutual relationships between the dependent and independent variables, where the likelihood of an event occurring given the following set of independent variables was estimated:
Sociodemographic: gender, age groups, educational level, area of knowledge, employment generation.
Contextual (entrepreneurial attributes).
Individuals who start their businesses seek independence and improvement of their economic stability. Some studies explore entrepreneurial characteristics leading individuals to self-employ or generate employment. Table 1 shows the entrepreneurial attributes from the literature.
Venezuelan migration is considered the largest human mobilization in Latin America. This movement encompasses documented and undocumented migrants, some of whom count on support from migration networks in the destination country (Mazuera-Arias, Albornoz-Arias, Superlano et al., 2019). Numbers obtained on August 5, 2021, show 5,667,835 Venezuelan migrants around the world, of which 4,621,562 living in other countries of Latin America and the Caribbean, mainly in Chile, Colombia, Peru, and Ecuador (R4V, 2021; United Nations Refugee Agency, 2019a; World Bank, 2019). They left Venezuela due to a humanitarian and economic crisis that has severely deteriorated the living standards in the country.
Venezuelan migration has also impacted other countries, such as Brazil, particularly at the border between Santa Elena de Guairén (Venezuela) and Pacaraima (Brazil). During the COVID-19 pandemic, Ordinance 655 of June 23, 2021, published by the Brazilian federal government, allowed the entry of Venezuelan migrants for humanitarian reasons and the migratory regularization of Venezuelans who entered the country (United Nations Refugee Agency, 2019b).
In December 2020, Colombia hosted 37% of the Venezuelan migrants worldwide, a total of 1,729,537 people. Of these, 51% were men, and 55.9% were undocumented (Migración Colombia, 2020). In the Colombian department of Norte de Santander – Northeast of Colombia, bordering Venezuela – there were 187,854 migrants from Venezuela (or 10.86% of the total in Colombia). The department/state comprises 40 municipalities, and the municipality of Gramalote examined in this study counted 194 Venezuelan migrants registered by the authorities (0.1% of the Venezuelan migrants in the department) (Migración Colombia, 2020).
Data were obtained from a structured instrument applied to 88 Venezuelan migrants over 18 years of age, entrepreneurs of businesses in the urban area of Gramalote, municipality of the Norte de Santander Department, Colombia. The population consulted for this study represents 45.36% of all migrants registered by the local authorities.
A descriptive analysis was used to process the data, followed by a bivariate analysis examining the relationship between the dependent variable, “perception and ability to seize opportunities,” and each of the independent variables (sociodemographic and contextual variables, or “entrepreneurial attributes”), using Fisher’s exact test, at a confidence level of 5%. Kendall’s tau-b test was performed to measure the direction of the relationship in those variables that showed evidence of statistically significant association. Finally, a multinomial logistic regression model was fitted to determine the mutual relationships between the dependent and independent variables, where the probability of an event occurring given a set of explanatory variables was estimated. Data processing and analysis were carried out using SPSS.
The variables were regrouped and recoded to be treated statistically by multinomial logistic regression, defining as the dependent variable “perception and ability to seize opportunities,” determined by the response categories: 1= low, 2= medium, 3 = high.
The following were defined as independent variables:
Sociodemographic: Gender (dichotomous variable): 0= Female, 1= Male; Age groups: 1= 18 to 34 years, 2= 35 to 49 years, 3= over 50 years; Educational level (dichotomous variable): 0= High school or less, 1= Technician and professional; Area of knowledge: 1= Administration/Accounting, 2= Law, 3= Engineering, 4= Technical, 5=Other; Generates employment (dichotomous variable): 0= No, 1= Yes.
Contextual (business attributes, determined by response categories: 1= low, 2= medium, 3 = high). Taking risks: 1= Low, 2= Medium, 3 = High; Demanding efficiency and quality: 1= Low, 2= Medium, 3 = High; Persistence and compliance: 1= Low, 2= Medium, 3 = High; Information seeking: 1= Low , 2= Medium, 3= High; Setting goals: 1= Low , 2= Medium, 3 = High; Building support networks (persuasion): 1= Low , 2= Medium, 3 = High; Having self-confidence: 1= Low , 2= Medium, 3 = High.
A multinomial logistic regression model was fitted to determine the relationship of the characteristics between the dependent and independent variables. The probability of an event occurring given a set of explanatory variables, represented by the general expression, was estimated:
Where Y represents the dependent variable (the level of perception and ability to seize opportunities), which takes the values of 1, 2, and 3, low, medium, or high, respectively; Xk the vector of k independent or explanatory variables and βkj=β0j ..βlj ….βkj which includes intercept β0j, the vector of coefficients to be estimated for the effect of Xk on choice j.
For the analysis and estimation of the model, the maximum likelihood method was used, considering the point where the log-likelihood is maximized through repeated iterations until reaching the point where the parameter value converges.
Tables 2 and 3 show the percentage distribution of migrants according to the dependent variable “perception and ability to seize opportunities.” Of the total number of entrepreneurs, 8% (7) had low levels of perception and ability to seize opportunities, while 51.1% (45) had medium levels, and 40.9% (36) presented high levels.
In order to have a first approximation of the possible relationships between the dependent variable, “perception and ability to seize opportunities,” and each independent variable, the Fischer exact test was applied at a significance level of 5%. In the case of nominal variables, Cramer’s V test for the strength of association and Kendall’s Tau-b test for the strength and direction of association were used (the latter in the case of ordinal variables).
Table 4 shows the test results for the demographic variables. The variables gender, age groups, educational level, and area of knowledge showed no evidence of a statistically significant relationship (p > 0.05), while the variable generates employment showed a statistically significant relationship (p < 0.05) with the dependent variable perception and ability to seize opportunities.
Table 5 presents the test results for the context variables (entrepreneurial attributes). According to Kendall’s Tau-b statistic, all the entrepreneurial attributes showed a statistically significant relationship with the dependent variable (p < 0.05), i.e., increasing the level of each of these variables increases the perception and ability to seize opportunities.
Table 6 shows the summary of the model, where it is evident that the model is adequate for the fit of the data. The log-likelihood (-2LL) or deviance statistic of 37.693 is significant (p = 0.00) and measures the extent to which the model fits the data. The Cox and Snell Pseudo R-squared estimated 0.694, which indicates that 69.4% of the proportion of the dependent variable variance is explained by the variation of the independent variables in the model. On the other hand, the Nagelkerke Pseudo R-squared statistic (corrected version of Cox and Snell’s Pseudo R-squared) indicates that the model’s independent variables explain 82.8% of the proportion of variance of the dependent variable.
Table 7 presents the results of the multinomial logit model where the pooled analysis is found. In the interpretation of the odds ratios of each variable, it is assumed that the rest of the independent variables remain fixed. In this case, each of the independent variables is interpreted between the low and high levels of perception, taking the medium level of perception as a reference (categories or average level of responses of the variable).
Concerning the option medium level (2) of the perception and ability to seize opportunities scale (reference category or standardized to zero) related to the independent variables educational level, generates employment, demanding efficiency and quality, compliance, and information seeking, no evidence was observed of statistically significant relationship with low-level entrepreneurs (3). Also, there was no evidence of a statistically significant relationship between the independent variables and an increase in the likelihood of an entrepreneur presenting a high level (1) of perception and ability to seize opportunities scale.
These results suggest that educated and qualified entrepreneurs are more likely to be self-employed and find formal employment (Cruz et al., 2018), as opposed to the labor force of low-skilled migrants who are mainly placed in other low-paying jobs. In Colombia, skilled and unskilled Venezuelan migrants have found barriers to enter the formal labor market due to the temporary nature of migration documents, irregular migration, difficulties in validating professional qualifications, lack of knowledge about labor recruitment processes, barriers to accessing social protection networks and formalizing enterprises (Castro, 2020).
With respect to educational level, the coefficient (b = 1.440) is associated with the likelihood that the entrepreneur has a high level of perception and ability to seize opportunities. The odds ratio = 4.221 indicates the likelihood of having a high level of perception and ability to seize opportunities compared to an entrepreneur in the medium level of the perception and ability to seize opportunities scale (reference category), i.e., it increases by 4.22 times as the level of education, High School or less, increases by one unit. Education represents human capital, which is an important factor in predicting entrepreneurial activities (Liu et al., 2018). The literature has found that people who start businesses are more educated than those who do not (Kimosop et al., 2016) and are more innovative. Also, entrepreneurship is related to skills, knowledge, and confidence in recognizing opportunities, with formal education being the most influential on entrepreneurial intention because it motivates actions and behaviors to start a business (Jafari-Sadeghi et al., 2020).
For the medium-level option of the perception and ability to seize opportunities scale (reference category), the variable “does not generate employment” presents a negative coefficient (b = -4.124), which is associated with a low likelihood that the entrepreneur has a high level of perception and ability to seize opportunities. The inverse of the odd ratio (o Expo(b)), = 61.85, indicates that an entrepreneur who generates employment is 61.85 times more likely to have a high level of perception and ability to seize opportunities. This result coincides with the position of Duarte and Ruíz (2009) and Formichella (2004) when they point out that from the idea of development to the local development theory, individuals must have the possibility to develop production processes that allow them to generate self-employment and wealth, as well as employment for others.
For the medium level of the scale of perception and ability to seize opportunities (reference category), the negative coefficient (b = -3.247) of a medium level of demanding efficiency and quality is associated with a low likelihood that the entrepreneur presents a high level of perception and ability to seize opportunities, the quotient = 25.72, indicates that an increase by one unit of a medium level of demanding efficiency and quality increases the odds of having a high level of perception and ability to seize opportunities by 25 times more than migrants with a medium level of the dependent variable. This result reveals that this entrepreneurial attribute focuses on starting a business to improve living conditions. However, the quality of self-efficiency, which is related to the control of entrepreneurial behavior (Shapero, 1985), in the case of Venezuelan migrants, leads these people toward a behavior under which they aspire to a viable and credible business.
Regarding the medium level of the perception and ability to seize opportunities scale (reference category), the negative coefficient (b = -1.981) of a medium level of compliance and responsibility is associated with a low chance of the entrepreneur having a high level of the dependent variable. The quotient = 7.25 indicates that the chances of having a high level of perception and ability to seize opportunities increase by 7.25 times as the average level of compliance increases by one unit. Compliance characterizes people with a high need for achievement (Robbins, 1999).
For the medium level of the perception and ability to seize opportunities scale (reference category), the negative coefficient (b = -2.167) of a medium level of information seeking is associated with a low likelihood that the entrepreneur has a high level of perception and ability to seize opportunities. The ratio = 8.73 indicates that a one unit increase in medium level of information seeking increases the odds of having a high level of perception and ability to seize opportunities by 8.73 times more than migrants with medium level of perception and ability to seize opportunities. The results show that the event of an entrepreneur with a medium level of contextual information and a low likelihood of having a high level of perception and ability to seize opportunities occurs due to a predisposition to take risks by starting a business abroad. According to Gnyawali and Forgel (19 9 4), the information entrepreneurs should know in this situation refers to government policies and procedures and how to obtain financial and non-financial assistance.
About the medium level of the perception and ability to seize opportunities scale (reference category) the negative coefficient (b= -2.021) of a medium level of building support networks (persuasion) is associated with a low likelihood of the entrepreneur having a high level of the dependent variable. The ratio = 7.54 indicates that a one unit increase in the medium level of building support networks (persuasion) increases the chances of having a high level of perception and ability to seize opportunities by 7.54 times more than migrants with a medium level of the dependent variable. Adaptation of the migrant entrepreneur to the host country context, brain drain, and gain for the home and host country are typical processes in migration contexts (Elo et al., 2019). This finding suggests that a foreign entrepreneur who decided to start a business gained credibility and trust from customers in an unfamiliar market. However, they must appeal for support networks, social connections, and a source of resources (Elo & Dana, 2019; Gnyawali & Forgel, 1994).
This study reveals that Venezuelan entrepreneurs are characterized by their level of education, capacity to generate employment, demanding efficiency and quality, compliance, information seeking, and building support networks. These are the variables associated with the likelihood of perceiving and seizing business opportunities.
However, Venezuelan migrants in the Norte de Santander Department face a context of high unemployment and informality, few formal job opportunities, and obstacles to obtaining financing. Against this backdrop, they resort to informal self-employment since they do not know the legal norms about registering a business (Semana, 2020).
Migration policy must consider the need to comply with the regulation of migrants, especially in a post-pandemic and cross-border context (Elo et al., 2022). In this case, the Colombian government must include in public policies the support of sustainable livelihood projects of migrant entrepreneurs, free technical support, and a simplified path to register businesses in the Chamber of Commerce, making access to financing for viable projects more flexible, motivating the generation of formal employment and self-employment, and contributing to the development of the state through the payment of social security and taxes.
Finally, the main contributions of this research consist of the literature review on entrepreneurial attributes or characteristics and identifying such attributes in migrant entrepreneurs. It is a pioneering quantitative study that works with primary data collected from Venezuelan migrants in Colombia and offers guidelines supporting the country’s policies.
The authors have no conflicts of interest to declare.
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