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Young entrepreneurs in Brazil: the search of room for achievement or an escape from exclusion?

This article focuses on the path of young (18-24 year old) Brazilian entrepreneurs during the period 2001 and 2008. Based on data from the GEM Study, we analyzed young peoples' participation in entrepreneurship within Latin American and Bris countries (Brazil, Russia, India, and South Africa). Toward the goal of uncovering peculiarities of this entrepreneurial segment, we focus only on the youths' initial entrepreneurial activities, their motivation (entrepreneurship by necessity or opportunity), revenue, education, activity sector as well as on policies and support mechanisms. Associates quantitative and qualitative methods, and contextualized with secondary sources such as IBGE, BID, PNAD, OIT, and OMS. It was found that, in Brazil, the majority of youths are self-employed, have few employees in their businesses and dispose of few resources to face risk. Factors such as low levels of education and other factors, among others, tend to push their businesses toward a higher probability of failure. Businesses that survive do not yield significant economic impacts, but rather merely maintain the precarious survival of a great number of youths that are excluded from the formal labor market. On the other hand, young people who are entrepreneurs "by opportunity" are part of a relatively small group and are able to support them. Finally, we emphasize that support and sustainability of young entrepreneurs depend on the context and public policy.

young entrepreneur; precarious labor; entrepreneur by necessity; entrepreneur by opportunity


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