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Migraciones internacionales

On-line version ISSN 2594-0279Print version ISSN 1665-8906

Migr. Inter vol.13  Tijuana Jan./Dec. 2022  Epub Feb 17, 2023

https://doi.org/10.33679/rmi.v1i1.2379 

Papers

Factors Associated with the Entrepreneurial Intention of Venezuelan Emigrants

Rina Mazuera-Arias,1 

Neida Albornoz-Arias,2 

Carolina Ramírez-Martínez,3 

Myriam-Teresa Carreño-Paredes,4 

Miguel Ángel Morffe Peraza5 

Jesús Gerardo Díaz6 

1 Universidad Simón Bolívar, Colombia, mazuerarina@gmail.com

2 Universidad Simón Bolívar, Colombia, n.albornoz@unisimonbolivar.edu.co

3 Universidad Simón Bolívar, Colombia, c.ramirezm@unisimonbolivar.edu.co

4 Universidad Simón Bolívar, Colombia, m.carreno@unisimonbolivar.edu.co

5 Universidad Católica del Táchira, Venezuela, mmorffe@ucat.edu.ve

6 Universidad Católica del Táchira, Venezuela, jdiaz@ucat.edu.ve


Abstract

This article analyzes the factors related to entrepreneurial intention in a sample of 4,157 Venezuelans of legal age who emigrated in 2019. It is a quantitative, non-experimental study with non-probability sampling in which a structured survey was applied. A bivariate analysis was made between the dependent variable “the intention to undertake their own business” with respect to the independent variables that relate to sociodemographic information, psychosocial and economic causes of emigration. Pearson’s chi- square test was used, and the variables were adjusted to a binary logistic regression model. Among others, the findings reveal that entrepreneurial intention is associated with family reunification and violence and insecurity in Venezuela (push factors), as well as research on opportunities and labor regulations (pull factor). Likewise, the importance of institutional support for the promotion of self-employment and formal employment is underlined.

Keywords: 1. Venezuelan emigrants; 2. entrepreneurial intention; 3. pull factors; 4. Venezuela; 5. Latin America.

Resumen

Este artículo analiza factores relacionados con la intención emprendedora en una muestra de 4 157 venezolanos mayores de edad que emigraron en 2019. Es un estudio cuantitativo, no experimental, con muestreo no probabilístico, en el que se aplicó una encuesta estructurada. Se hizo un análisis bivariado entre la variable dependiente “intención de emprender su propio negocio” respecto de las variables independientes relacionadas con información sociodemográfica, así como con las causas psicosociales y económicas de la emigración. Se empleó la prueba Chi-cuadrado de Pearson y las variables se ajustaron a un modelo de Regresión Logística Binaria (RLB). Los hallazgos revelan que la intención emprendedora está asociada a la reagrupación familiar y a la violencia e inseguridad en Venezuela (push factors), así como a la indagación sobre las oportunidades y normativas laborales (pull factor). Así mismo, se subraya la importancia del apoyo institucional para el fomento del autoempleo y del empleo formal.

Palabras clave: 1. emigrantes venezolanos; 2. intención emprendedora; 3. factores de atracción; 4. Venezuela; 5. América Latina.

Introduction

Why do Venezuelans Emigrate?

Venezuelan international migration has recently undergone an important and consistently increasing trend. This phenomenon must be understood as the product of a drastic change in the rhythm of Venezuelan national life that, since the mid-twentieth century, was characterized by political, social and economic stability or order, with marked periods of abundance of foreign exchange income for the State as a result of upward fluctuations in oil revenues.

The political change unfolding from 1999 on modified the traditional structures of the country’s economic system in order to move from a nuanced State capitalism to a socialist system (Rodríguez Rojas, 2010), which has been the source of a constant confrontation with various national and international sectors. To these changes was added, as an aggravating circumstance, the concurrence of the drop in oil prices in the international market, in a substantial and prolonged decline compared to those of previous times.

In December 2014, Venezuelan oil revenues had decreased by 60% (ElEconomista.es, 2015) in a context in which the State, even though it had managed to disjoint and dismantle the previous system and the production and distribution chains in force until 1999, still did not have effective alternative methods to deal with a situation of decreased income. This state of things caused the Venezuelan State, which had not diversified its economy, to face fundamental structural problems directly impacting on vital aspects of the population, such as the daily survival of people, their quality of life, and their professional development options and opportunities. This scenario led to shortages of basic food and health products, the closure of employment sources, the loss of purchasing power of the national currency, malnutrition, hyperinflation, constant political conflict, increased crime and violence rates, and uncertainty among the population regarding the future. Given this context, the majority of Venezuelans of productive age made the decision to emigrate to other countries in numbers never before recorded.

Key Moments in Emigration

In this macro context, according to specialists such as Vivas Peñalver and Paez (2017), three specific stages can be identified in the migration process of Venezuelans from the onset of the political, social and economic changes. The first in the year 2000, of low migratory impact, characterized by the migration of businessmen, families of high purchasing power, entrepreneurial professionals and students, mainly to the United States, Europe and Australia. The second stage began in 2012, of moderate impact, which coincides with the sharp drop in foreign exchange from oil revenues in the country; as previously addressed, the new socialist economic model was unable to provide an effective response to the loss of State income, which in turn led to an increase in unemployment and shortages of both food and medicine; in this second stage, the economic and social characteristics of the migrant groups were more heterogeneous and the main destinations were Colombia, Panama and the Caribbean islands, with the phenomenon of asylum also emerging at this point. A third and last stage, from 2015 to date, known as the hard or massive stage of the Venezuelan migration phenomenon (Migration of Despair) includes people of all social strata and economic levels (Vivas Peñalver & Paez, 2017).

The very United Nations High Commissioner for Refugees (UNHCR) recorded that by 2020 the number of Venezuelan migrants reached the figure of 5.4 million, more than 800 000 asylum applications, about 144 000 under clear refugee status from Venezuela, and more than

2.5 million living under other legal forms of stay in America and Europe. The situations that force them to leave their country (push factors) are violence, insecurity and threats, as well as the shortage of food, medicine and basic services (UNHCR, 2020).

For the Venezuelan migrant, this third stage is the time and place (timing of events) (Blanchflower & Oswald, 1998) where potential interconnected life processes emerge, and networks of shared relationships and will of choice and construction are created.

Entrepreneurial Venezuelan Migrants

The massive out-migration phenomenon in Venezuela occupies an unprecedented place in what has been defined as the most serious political, economic and social crisis in that country in its entire republican history, from 1830 to date. In this context, the migration stratum is made up of people who, after overcoming the effects of estrangement from family affections and their place of origin, set themselves the goal of achieving a better future through dedication to work, professional overcoming, through respect and integration into the societies receiving them and offering them opportunities (pull factors), and through the correct application of their cleverness in areas such as crypto assets, and the automotive, real estate and food markets (PrivateWall Magazine, 2020). The United Nations (UN) itself, at its World Humanitarian Summit in May 2016 and in the New York Declaration for Refugees and Migrants, approved at the 71st Session of the UN General Assembly in September 2016, acknowledged that migrants and refugees make a positive social, cultural and economic contribution both to their countries of origin and host countries (UN, 2018).

Approaching the matter this way, this work focuses on identifying the variables associated with the entrepreneurial agency of Venezuelans in the destination country, based on a quantitative analysis of the factors related to such agency, from the perception of a non- probabilistic sample taken at the border crossing between San Antonio del Táchira (Táchira State, Venezuela) and La Parada (Norte de Santander Department, Colombia), in 2019. This sample consisted of 4 157 Venezuelans, out of a population of 12 957 consulted documented emigrants of legal age, who stamped their passports at the exit point and told the pollsters of their intention to migrate.

The information was collected through a structured survey that was not developed as a specific instrument for this study: given the similarity of the research, a general instrument elaborated for an investigation whose goal was to make a characterization of the Venezuelans who emigrate through the Venezuelan western border: the Táchira State (Venezuela) and Norte de Santander Department (Colombia) border crossing, in the period from April 8 to May 5 in 2019, and the identification of their prospects in the selected host country. These data were worked statistically with a number of variables also previously used for several academic studies, safeguarding the principle establishing that the new purpose must be compatible with the original one. The questions of the initial survey were structured based on a number of variables under study, and general information was obtained from some of them.

Theoretical Context of Entrepreneurship and of Push-Pull Factors

Among the theories on international migration related to entrepreneurship and the factors that enable it, the Theory of Entrepreneurship stands out, which rose in popularity in the 18th century in Great Britain during the Industrial Revolution, and contributed to the progress of trade and activities of this type (Vázquez Moreno, 2015), considering that the entrepreneur assumes risks and combines resources (money, work, time, raw material).

The term entrepreneur is attributed to the French Richard Cantillon in his work published in 1755, Essai sur la Nature du Commerce en Général (Essay on the Nature of Trade in General), where he referred to the entrepreneur as the person who starts up a business where resources and risk are involved (Nueno, 2003).

Entrepreneurship is a process where several variables come together, ranging from the business idea to the work team (Barrera Malpica, 2012; Castiblanco Moreno, 2013), it goes beyond the creation of companies (Arias Arciniega & Giraldo Bedoya, 2011) and it is also not limited to the conception of a product, but can even modify, innovate or improve an existing one (Castiblanco Moreno, 2013). Once the process is ongoing and after its inception, the driving factors of growth intervene, among which persistence, innovation, quality and customer service can be mentioned, as well as the perseverance to overcome internal and external difficulties (Barrera Malpica, 2012), and the undertaking of risks that will allow the entrepreneur to acquire profit or experience losses, depending on their decision making throughout the process (Castiblanco Moreno, 2013).

Business activity has an impact on the community and on local development when proper articulation of all the actors is achieved (Castiblanco Moreno, 2013). The policies and actions of the State and other private entities are of utmost importance, since there must be programs and projects that enable entrepreneurship and its positive impacts (Arias Arciniegas & Giraldo Bedoya, 2011). This process is of interest to the State and to society in general because it propels the economy (Barrera Malpica, 2012; Schumpeter, 1934) by means of its innovative role (De Barros & De Araújo Pereira, 2008; Baumol, 1993; Porter, 1991) and due to the establishing of job-creating companies.

For Schumpeter (1961) the concept of entrepreneur is approached from an economic perspective when he states that this is a person who breaks the cycles of the market by introducing new innovative products and bringing prices down. He also considers entrepreneurship as part of a cycle, in which other entrepreneurs in the market participate and will continue with the process of modifying such market.

However, economic growth is not always achieved by the entrepreneur, training in entrepreneurship being necessary (Cardona Montoya, Martins, & Velásquez Ceballos, 2017) to produce a slight increase in social capital. This, coupled with contacts, trust in others, as well as networking, provides the entrepreneur with greater access to resources (Cárdenas, Guzmán, Sánchez, & Vanegas, 2016) and allows him to build up his business project (Rodríguez & Jiménez, 2005). Likewise, entrepreneurship is considered a creative process that depends largely on the individual, opportunity, economic resources, experiences, risk awareness and self-efficacy (Shane, Locke, & Collins, 2003).

Three factors partake of entrepreneurship: first, the motivations of the person, their skills, abilities and financial resources; the second, the environment and surroundings where opportunities are found; and the third, the regulatory framework of the activity. Within this, motivations are the factor that drives entrepreneurs to carry out an activity in a particular way (González Millán & Parra Penagos, 2008; Marulanda Valencia & Morales Gualdrón, 2016).

The entrepreneurial motivation is dynamic and goes through the stages of expectation, activation, direction and feedback (Soriano, 2001). The activation of behaviors depends on the personality traits and the skills of the individual in the business environment (Marulanda Valencia, Montoya Restrepo, & Vélez Restrepo, 2014).

It has been seen as a multidimensional process involving personal, social, cultural and economic aspects (García Ramos, Martínez Campillo, & Fernández Gago, 2010; Marulanda Valencia, 2015; Saavedra García & Camarena Adame, 2015). The motivations for starting up a business can vary between men and women. Whereas men focus on higher income and economic independence, women wish to earn income and take advantage of free time (Castiblanco Moreno, 2013); Likewise, it can be noted that women start their businesses between the ages of 36 and 50 years, when they spend less time raising children, while men start businesses between the ages of 20 and 30 years. The motivations of women when undertaking self-employment are not business opportunities, but rather adjusting the time restrictions their housework entails with their own business, thus allowing them to obtain benefits for the family (Allen & Curington, 2014); other common reasons for women to undertake entrepreneurship is their dissatisfaction due to insufficient income, dissatisfaction with their salary, wish for independence, desire to have money, social status and power (Castiblanco Moreno, 2013). It is also a fact is that there is a greater participation of men than women in the creation of new companies (Ventura Fernández & Quero Gervilla, 2013).

Theorizations on drive speak of an internal stimulus that prompts the person to search for a decrease in tension. According to the Incentive Theory of Motivation, there is a push that leads the person to the fulfillment of a goal, to achievement, to success and economic benefit (Carsrud & Brännback, 2011; Eijdenberg & Masurel, 2013; Marulanda Valencia et al., 2014). However, for this, cognitive skills, knowledge of the activity to perform, access to the necessary technology, in addition to skills such as planning, leadership, decision making, negotiation, problem solving and team building are also important (Shane et al., 2003).

According to their origin, motivations are classified into internal factors, such as interest, self-determination, self-direction, need for achievement, independence, security, hedonism, reciprocity, goal achievement, initiative, self-efficacy, tolerance for ambiguity, internal control locus (Antonioli, Nicolli, Ramaciotti, & Rizzo, 2016; Bandura, 1977, 1982; Carsrud & Brännback, 2011; Eijdenberg & Masurel, 2013; Ferreira, Loiola, & Guedes Gondim, 2017; McClelland, 1961; Schwartz, 1992; Shane et al., 2003; Shane & Venkataraman, 2000), and external factors, such as formal regulations, business incorporation procedures, attitudes towards the entrepreneur, cultural aspects, political and monetary stability, market forces, investment capital, labor market, technology, and transportation infrastructure (Antonioli et al., 2016; Carsrud & Brännback, 2011; Fuentelsaz & González, 2015; García Ramos et al., 2010; Marulanda Valencia et al., 2014; Shane et al., 2003; Soriano, 2001).

Among the external factors, of utmost importance is the presence of institutions establishing the rules of the game in society (North, 2006), as well as the norms that the different actors affecting the economic performance and therefore the process of business creation and development must follow (Marulanda Valencia et al., 2014). If the rules are clear, entrepreneurship takes place in appropriate scenarios able to promote the growth, staying power and lasting presence of new companies; conversely, if the rules are imprecise, undefined and within an inadequate institutional framework, entrepreneurship is hindered in different ways depending on the consequences brought about by the institutional framework of each country (Fuentelsaz & González, 2015). The entrepreneurial spirit depends on the specific time and place (García Ramos et al., 2010), while the sociocultural and environmental approach is explained according to political, family, social and institutional support factors around the entrepreneur (Alonso Nuez & Galve Gorriz, 2008).

When it comes to these external factors, being able to identify opportunities is essential, even more so than obtaining resources itself (Guzmán Vásquez & Trujillo Dávila, 2008). The entrepreneur is a person who perceives opportunities that others do not see, and takes advantage of them even in uncertain situations of market imbalance (Kirzner, 1971; Stevenson & Gumpert, 1985). When such an opportunity is discovered and made the most of, the entrepreneur guides the market towards equilibrium through the reduction of costs and prices freely set by means of supply and demand (Lasierra Esteban, 2016).

In the case of entrepreneurship by opportunity, the entrepreneur acts upon ideas that others have indeed seen but not developed upon (Elizundia Cisneros, 2012). This is influenced by the handling of information, the way it is perceived, and by cognitive skills, how is information assessed (Shane & Venkataraman, 2000). In this sense, opportunities are perceived as life options in a context in which people seek to be independent, where there is innovation, and also where these people have an impact on the economy of the countries (Marulanda Valencia et al., 2014).

However, the lack of clear rules and regulations able to guide the entrepreneur through the process of legally constituting their business, and having limited access to financing (Lanzara, 1999), could prevent the development of opportunity ventures, causing many of these entrepreneurs to get stuck in micro businesses established out of need, unable to grow or become formal.

The lack of opportunities encourages entrepreneurship out of necessity, under which the entrepreneur has only that single option for facing unemployment and survive (Romero- Martínez & Milone, 2016; Simón Moya, Revuelta Taboada, & Medina Lorza, 2012); as the individual is unable to get what he is looking for in the labor market (Romero-Martínez & Milone, 2016), poverty and survival drive this type of entrepreneurship in developing countries (Eijdenberg & Masurel, 2013).

Likewise, when it comes to the theoretical principles that explain the factors that motivate leaving one country and arriving in another (push-pull factors), broadly speaking Lee (1966) states that:

Migration is broadly understood as a permanent or semi-permanent change of residence. In other words, migration may be defined as a form of relocation diffusion (the spread of people, ideas, innovations, behaviors, from one place to another), involving permanent moves to new locations. The reasons that people migrate are determined by push and pull factors, which are forces that either induce people to move to a new location, or oblige them to leave old residences. These could be economic, political, cultural, and environmental (p. 48).

Social Networks and Social Capital in the Labor Insertion of Venezuelan Migrants

From other perspectives, it is interesting to take a look at entrepreneurship theories based on resources or from the business management approach. These theories analyze liquidity, financial capital, social capital, social networks and human capital (Simpeh, 2011), in their condition as opportunities and as drivers of all entrepreneurial action, and as guiding forces of the capacity of new entrepreneurs to become efficient workers or business managers in the host countries. Of these resources referred above, social networks and social capital are among the most important ones, and are understood, according to Eito Mateo (2005) and Massey, Alarcón, Durand and González (1987), from their research on the migratory social experiences of Mexican communities settled in the United States:

As the set of interpersonal relationships that link migrants with their countrymen and friends from the society of origin, and with new ties in the host society (...) These networks, as a set of interpersonal relationships and as a conduit for a series of goods, can be considered as (and in fact are) a form of social capital (Eito Mateo, 2005, pp.192 and 220).

Although in this research the original data collection instrument did not delve into the previously formed family or work social networks of Venezuelan migrants, such networks were generally indeed identified. Every migrant is in one way or another integrated into the dynamics of a macro social network structure, this turning into a wide field of opportunities for entrepreneurial migrants, who are allowed to take advantage of it from the frame of work, family or friendship in the host country (Aldrich & Cliff, 2003).

Likewise, in the case studied and from the qualitative perspective of the interviewed Venezuelan migrants, the social and human capital they represent can potentially be directed at other areas based on the knowledge acquired during educational and work experiences. As will be detailed in the methodological section, about half of the interviewees state having migrated planning on becoming an entrepreneur and also mention having completed high school and university studies, as well as having prior work experience of no less than one year. This translates, from the logic or dynamics that characterize the mobility of all qualified labor force, into a considerable loss that is difficult to recover for Venezuela as a country of origin, in the medium or long term, and a gain for the host or destination countries.

Methodology

This study and its methodological model are based on the analysis of the factors related to the entrepreneurial agency of Venezuelan migrants. The non-probabilistic study sample consisted of 4 157 Venezuelan migrants of legal age who provided information regarding their intention to become entrepreneurs, out of 12 957 documented migrants consulted who crossed through the border pass between the State of Táchira (Venezuela) and the Norte de Santander Department (Colombia), between April 8 and May 5 of 2019. The instrument that allowed information to be collected was a structured survey originally prepared by social researchers from the Jesuit Refugee Service (Servicio Jesuita a Refugiados, Venezuela), the Táchira Catholic University (Universidad Católica del Táchira, Venezuela), the Simón Bolívar University (Universidad Simón Bolivar, Colombia), and the Border Social Research Observatory (Observatorio de Investigaciones Sociales en Frontera) for the study entitled Venezuelan Human Mobility Report

II. Migrant Realities and Perspectives [April 8 to May 5 of 2019].

To the data collected from the survey, a bivariate analysis was applied between the dependent variable Planning on becoming an entrepreneur and each of the factors or characteristics related to the possibility of becoming an entrepreneur, that is, the independent variables or predictors: a) educational level; b) has researched on the reception of immigrants by society in that country;

c) has researched the labor opportunities and regulations in that country; d) reason why the decision to emigrate was made (despair/stress/uncertainty about the country’s situation); and e) economic reasons motivating emigration (helping their family financially), using Pearson’s Chi-squared test at a 5% confidence level.

In order to determine the relationship of the factors as a whole between the dependent and independent variables, a BLR model was adjusted where the probability that an event occurs is estimated given a set of explanatory variables, as follows:

P1=P Y=1= eβ+β1X1+β2X2+βnXn1+e(β0+β1X1+β2X2+βnXn)=11+e-(β0+β1X1+β2X2+βnXn)

where in equation in (1), P(Y=1) represents, in this case, the probability that the migrant is planning on becoming an entrepreneur, X1, X2…; Xn represents the vector of independent or predictor variables, β0, β1, β2, βn; where β is the parameter vector of the model. The dichotomous predictor variables are coded as dummy variables: educational level (higher education = 1, secondary or lower = 0); has researched on the reception of immigrants by society in that country (yes=1, no=0); has researched the labor opportunities and regulations in that country (yes=1, no=0). The categorical predictor variables are defined with their respective reference parameters: reason why the decision to emigrate was made, with the category despair/stress/uncertainty about the country’s situation, and economic reasons motivating emigration, with the category helping their family financially.

Parameter estimation was performed by means of the maximum likelihood interactive algorithm. The goodness of fit of the model was carried out by means of likelihood ratio tests, Log-likelihood -2 = 5535.801, and a Nagelkerke’s Pseudo R-squared value = 0.048. The processing and analysis of the data was done through the computer statistical program SPSS v.24.

Results

Characteristics of Migrants with Entrepreneurial Agency (Aiming at Owning Businesses)

The variables under study are presented in Table 1, from which it is obtained that out of the total study population, made up of 4 157 migrants interviewed, 1 799 individuals (43.3%) plan on becoming entrepreneurs, while 2 358 (56.7%) stated having no intention of undertaking own businesses. From this frame of reference, the explanatory variables were arranged in two factor groups: sociodemographic characteristics and contextual characteristics.

Of the migrants with entrepreneurial intentions, 38.5% are women and 61.5% are men; 82.7% are between the ages 18 and 39 years, and 17.3% are older than 39 years; 56.9% said they were single, divorced or widowed, while 43.1% said they were married or cohabiting. 61.9% of those interviewed have children. 50.8% have a secondary education level or lower, while 49.2% have higher education; however, 69% do not have a degree or certification supporting their trade. The majority of 86% do not have apostilled study certificates; 86% have over one year of work experience.

Regarding contextual variables, of the migrants planning on becoming entrepreneurs, 34.6% made the decision to migrate because they were facing an economic, hunger and health crisis; 32.9% migrated due to desperation, stress, uncertainty, while 19.4% did so due to violence and insecurity in their country, and 13.2% due to family reunification. When it comes to the economic reasons that motivated individuals to emigrate, 42.5% did so to seek new and better job opportunities; 30.3%, to help their family financially, and 27.2% did so due to not being able to maintain their quality of life, and facing unemployment. 56.1% did research on the legal migration aspects of the destination country; 62.3% have done so on the reception of immigrants by the hosting society, and 69.9% researched employment opportunities and regulations in the destination country. 97.2% of those interviewed said they would send remittances to their relatives. 40.2% stated having Peru as their destination; 28.3%, Ecuador; 15%, Colombia; 14%, Chile; and 2.4% stated having other countries as their destination.

Table 1 Study variables 

Planning on becoming an entrepreneur
No Yes Total
Variables sociodemográficas Code N % N % n %
Total 2 358 56.7 1 799 43.3 4 157 100
Gender Woman 0 856 36.3 692 38.5 1 548 37.2
Man 1 1 502 63.7 1 107 61.5 2 609 62.8
Total 2 358 100 1 799 100 4 157 100
Age groups 18 a 39 years 0 1 946 82.5 1 488 82.7 3 434 82.6
Más de 39 years 1 412 17.5 311 17.3 723 17.4
Total 2 358 100 1 799 100 4 157 100
Couple relationship Single / Divorced / Separated / Widower 0 1 403 59.5 1 024 56.9 2 427 58.4
Married/Cohabiting 1 955 40.5 775 43.1 1 730 41.6
Total 2 358 100 1 799 100 4 157 100
Has children No 0 919 39 686 38.1 1 605 38.6
Yes 1 1 439 61 1 113 61.9 2 552 61.4
Total 2 358 100 1 799 100 4 157 100
Educational level Secondary or lower 0 1 347 57.1 913 50.8 2 260 54.4
Higher education 1 1 011 42.9 886 49.2 1 897 45.6
Total 2 358 100 1 799 100 4 157 100
Degree or certification supporting their trade No 0 1 661 70.4 1 242 69 2 903 69.8
Yes 1 697 29.6 557 31 1 254 30.2
Total 2 358 100 1 799 100 4 157 100
Carries apostilled study certificates No 0 2 058 87.3 1 547 86 3 605 86.7
Yes 1 300 12.7 252 14 552 13.3
Total 2 358 100 1 799 100 4 157 100
Work experience No work experience/Less than a year 0 358 15.2 251 14 609 14.6
Work experience/Over a year 1 2 000 84.8 1 548 86 3 548 85.4
Total 2 358 100 1 799 100 4 157 100
Contextual variables Code N % N % n %
Reason why the decision to emigrate was made Economic crisis/Hunger/Health 1 796 33.8 622 34.6 1 418 34.1
Violence and insecurity 2 366 15.5 349 19.4 715 17.2
Family reunification 3 221 9.4 237 13.2 458 11
Despair/Stress/Uncertainty about the country’s situation 4 975 41.3 591 32.9 1 566 37.7
Total 2 358 100 1 799 100 4 157 100
Economic reasons motivating emigration* Finding new and better job opportunities 1 879 37.3 765 42.5 1 644 39.5
Unable to sustain their quality of life/Unemployment 2 712 30.2 489 27.2 1 201 28.9
Helping their family financially 3 767 32.5 545 30.3 1 312 31.6
Total 2 358 100 1 799 100 4 157 100
Has researched aspects of migration in that country No 0 1 320 56 790 43.9 2 110 50.8
Yes 1 1 038 44 1 009 56.1 2 047 49.2
Total 2 358 100 1 799 100 4 157 100
Has researched on the reception of immigrants by society in that country No 0 1 199 50.8 678 37.7 1 877 45.2
Yes 1 1 159 49.2 1 121 62.3 2 280 54.8
Total 2 358 100 1 799 100 4 157 100
Has researched the labor opportunities and regulations in that country No 0 1 037 44 541 30.1 1 578 38
Yes 1 1 321 56 1 258 69.9 2 579 62
Total 2 358 100 1 799 100 4 157 100
Will send remittances to their relatives No 0 72 3.1 50 2.8 122 2.9
Yes 1 2 286 96.9 1 749 97.2 4 035 97.1
Total 2 358 100 1 799 100 4 157 100
Country they migrate to Colombia 1 351 14.9 273 15.2 624 15
Chile 2 332 14.1 252 14 584 14
Ecuador 3 668 28.3 509 28.3 1 177 28.3
Peru 4 954 40.5 719 40 1 673 40.2
Other 5 53 2.2 46 2.6 99 2.4
Total 2 358 100 1 799 100 4 157 100

*Note: For this study, this variable holds significance and the answers to that question were multiple choice, hence the similar results.

Source: Mazuera-Arias, Albornoz-Arias, Morffe Peraza, Ramírez-Martínez and Carreño-Paredes (2019).

Bivariate Analysis

With the purpose of having a first approximation to the variables that will be analyzed in the relationship model between migrants who plan on becoming entrepreneurs and the factors related to that intention that characterizes them, the bivariate correlation analysis was carried out with a 5% significance level, resulting in statistically significant relationships: educational level (χ2(1)=16.172 p=.000); reason why the decision to emigrate was made (χ2(3)=42.066 p=.000); economic reasons (χ2(2)=11.921 p=.003); has researched aspects of migration in that country (χ2(1)=59.444 p=.000); has researched on the reception of immigrants by society in that country (χ2(1)=71.368 p=.000); has researched the labor opportunities and regulations in that country (χ2(1)=83.788 p=.000).

The sociodemographic variables analyzed do not partake of the model, so there is no evidence of a statistically significant relationship in: gender (χ2(1)=2.044 p=.153); age (χ2(1)=.024 p=.876); couple relationship (χ2(1)=2.794 p=.095); has children (χ2(1)=.305 p=.581); degree or certification supporting their trade (χ2(1)=.593 p=.329); carries apostilled study certificates (χ2(1)=.024 p=.877); work experience (χ2(1)=1.235 p=.266). The contextual variables not participating in the model, also due to not showing statistically significant evidence of a relationship, are: will send remittances to their relatives (χ2(1)=0.269 p=0.602), and country they emigrate to (χ2(4)=0.532 p=0.970).

Model of Factors Associated with Entrepreneurial Agency

Table 2 shows the summary of the Planning on becoming an entrepreneur model and the log- likelihood statistic (-2LL), or deviation of 5535.801, measures to what extent the model fits the data. Cox-Snell’s R squared estimates a value of .036, which indicates that only 3.6% of the variance proportion of the Planning on becoming an entrepreneur dependent variable is explained by the variation of the model’s explanatory variables. On the other hand, the Nagelkerke’s R-squared statistic (corrected version of Cox-Snell’s R-squared), indicates that only 4.8% of the variance proportion of the dependent variable is explained by the explanatory variables of the model.

Table 2 Summary of the model 

Step Log-likelihood -2 Cox-Snell’s R Squared Nagelkerke’s R Squared
5 5535.801a .036 .048

aThe estimate ended at iteration number 3 because the parameter estimates changed by less than .001.

Source: Mazuera-Arias et al. (2019).

According to the results presented in Table 3 referring to sociodemographic factors or variables, the model shows, at a significance level of 5%, that having a higher education level is positively and significantly associated with the possibility that a migrant intends to become an entrepreneur (Y=1).

A migrant having a higher education level, compared to having a secondary or lower education level, increases the probability of starting their own business by 19.4%. This result is consistent with the study by L. M. Tovar Cuevas, Victoria Paredes, J. R. Tovar Cuevas, Troncoso Marmolejo, and Pereira Laverde (2018) in which the factors associated with the probability of entrepreneurship among Colombian migrants who returned before the 2008 economic crisis of Colombia were studied, reflecting that the majority of entrepreneurs had higher education (63.64%). It also matches the findings of the study by Gubert and Nordman (2008) carried out with information from migrants from three countries of the Great Arab Maghreb (Tunisia, Morocco, & Algeria), a study evidencing that, among other factors, having a high educational level positively affects the probability of becoming an entrepreneur.

Table 3 Variables in the equation 

95 % C. I. for EXP(B)
Beta Standad error Wald gl Sig. Exp (beta) Low Higher
Educational level .177 .065 7.509 1 .006 1.194 1.052 1.355
Reason why the decision to emigrate was made 38.738 3 .000
Economic crisis/Hunger/Health .281 .076 13.592 1 .000 1.325 1.141 1.539
Violence and insecurity .462 .093 24.700 1 .000 1.587 1.323 1.904
Family reunification .529 .109 23.610 1 .000 1.696 1.371 2.100
Economic reasons motivating emigration 11.717 2 .003
Finding new and better job opportunities .192 .076 6.327 1 .012 1.212 1.043 1.408
Unable to sustain their quality of life/Unemployment -.058 .084 0.483 1 .487 0.944 .801 1.111
Has researched on the reception of immigrants by society in that country .217 .102 4.560 1 .033 1.242 1.018 1.515
Has researched the labor opportunities and regulations in that country .424 .105 16.307 1 .000 1.528 1.244 1.877
Constant -1.037 .086 144.217 1 .000 0.354

Source: Own elaboration based on original data obtained in field work (2019).

For the purpose of explaining the relationship between entrepreneurship and education, the general criteria set forth by Simpeh (2011) were made use of; this author alluded to the theories that explain entrepreneurship based on resources: Theory of Liquidity and Financial Capital, Theory of Social Capital or Social Networks, and Theory of Human Capital of Entrepreneurship. It is in the latter where the educational level that concerns us is addressed. By promoting qualities such as self-esteem and confidence, a key success factor is nurtured for taking advantage of business creation opportunities (Carreño Paredes, Albornoz Arias, Mazuera Arias, Cuberos de Quintero, & Vivas García, 2018). Along the same line, the skills and knowledge to create a company, to focus on profitability, innovation and taking advantage of opportunities are also accounted for within the frame of the educational level (Álvarez Herranz & Valencia de Lara, 2008; Lazear, 2005). The success of public policies designed to increase the rate of entrepreneurial activity is another positive element of migration that also depends on education (Oosterbeek, Van Praag, & IJsselstein, 2008), since the receiving country is positively impacted by the immigrants’ establishing of formal businesses and promoting of employment and self-employment.

On the other hand, no statistically significant evidence was found to indicate that factors such as gender, age, couple relationship, having children, having a degree or certification supporting their trade, having apostilled study certificates, or having work experience, affect the probability that a Venezuelan migrant intends to become an entrepreneur.

Contextual Factors: Reasons for Making the Decision to Migrate

Making the decision to migrate due to economic crisis, hunger and/or health reasons, as well as due to violence and insecurity, and due to family reunification are factors that are positively and significantly associated with the intention of entrepreneurship among Venezuelan migrants. That is, in the first case, it increases the intention to become an entrepreneur by 32.5%; if due to the violence and insecurity in the country, it increases it by 58.7%; and if due to family reunification, the increase is by 69.6% when compared to migrating out of despair, stress and uncertainty about the country’s situation (reference variable).

These results are related to the explanatory factors of migration that, according to Argerey Vilar (2006), are linked to push factors from the perspective of supply, which in turn are linked to economic crises, internal conflicts and the availability or access to resources.

In the case of Venezuelan migration, the push factors related to the country of origin pertain to underemployment, loss of purchasing power, reduction in oil production, proliferation of diseases such as malaria and diphtheria, food and medicine shortages, as well as the precarious public and private health services.

To the foregoing should be added the uncertainty caused by the country’s political crisis, which deepened when the National Assembly appointed its leader, Juan Guaidó, as President of the Republic on January 23, 2019 (Mazuera-Arias et al., 2019). In this context of turbulent national politics, Venezuelan migrants deem leaving the country as the most beneficial peaceful alternative for them and their families, although this decision indeed implies uprootedness, sadness, and longing for those family members and friends who cannot or do not want to migrate.

Contextual Factors: Economic Reasons Motivating Emigration

When the motivation to migrate is looking for new and better job opportunities, instead of doing it to help support their families financially (reference variable), it was observed that the possibility that a Venezuelan migrant intends to become an entrepreneur increases by 21.2%; thus, this is a factor by which receiving these migrants is attractive for the host country (Eijdenberg & Masurel, 2013). This finding is consistent with the study by Bermúdez, Mazuera-Arias, Albornoz-Arias and Morffe Peraza (2018), in which out of 14 578 documented Venezuelan emigrants surveyed, 82% were looking for new and better job opportunities, and 70% did so in order to help their relatives who did not migrate. Similarly, this result is also consistent with the study by Correa, Lacomba, and Ochoa (2016), in which the number of Ecuadorian migrants from the El Oro, Loja and Zamora regions, in 2010, was 26 469 people, of which 67.7% resided in Spain; 12.5% in the United States; 11.8% in Italy; 0.61% in Great Britain (England); and 10.4% in other countries. According to this study, they had migrated due to the lack of jobs, underemployment, and poverty, coupled with the fact that they had the responsibility and need to improve job and salary prospects, which is why they took advantage of the fact that there was demand for cheap labor in Europe at that time.

On the other hand, no evidence was found of a significant relationship between migrating due to not being able to maintain their quality of life and/or because of unemployment (p=.487) with the intention of becoming an entrepreneur.

As for the factors related to those migrants who have researched on the reception of immigrants by the hosting society of the destination country and also on the labor opportunities and regulations, a positive and significant association was found with the intention to undertake entrepreneurship; researching these matters, compared to not doing it, increases the possibility of entrepreneurship by 24.2%. This finding is explained by the hypothesis of discrimination on the part of some employers in the host countries, for which some immigrants, faced with the difficulty of finding a job or faced with reduced salaries, rather choose to undertake their entrepreneurial initiative in search of their own income and benefits, entrepreneurship being an attractive alternative through which they generate self-employment (Metcalf, Modood, & Virdee, 1996; Moore, 1983). However, another matter essential for the migrant to take into account before starting an own business are the preferences of the consumers of the host country when it comes to the products or services the migrant is to offer (Navajas Romero, 2014).

On the other hand, researching on the labor opportunities and regulations of the destination country compared to not doing so, increases the probability of becoming an entrepreneur by 52.8%, similar to the findings in the study by Albornoz-Arias, Contreras-Velásquez, Espinosa- Castro, and Sotelo Barrios (2019), wherein the ability to detect and take advantage of business opportunities is associated with persistence, vision, organization, results achievement and determination, which in turn relate to subsistence ventures of a short life cycle. In addition, the innovative quality of the entrepreneur is required for a lasting business whose impact on the country’s economy can be of relevance. Along the same lines, Liñán Alcalde and Santos Cumplido (2006) point out that business knowledge involves understanding the functions that the entrepreneur must perform and the connections with the environment in relation to his activity, including knowledge of the trade fabric, the discovery of opportunities in the proper context, as well as the duties and obligations required to materialize a business, both de facto and de jure.

Closing remarks

The findings of our study allowed grouping together factors associated with the increase in the entrepreneurial agency of the Venezuelan migrant, in line with the Theory of Entrepreneurship and in accordance with Lee’s Push-Pull Migration Model (1966), or push (pertaining the country of origin) and pull (related to the host country) factors, as summarized in Table 4.

Table 4 Factors associated with the entrepreneurial agency of Venezuelan migrants 

Push factors Pull factors
Economic crisis: hunger, poor access to health services. New and better job opportunities in the receiving country: labor market, formal and informal economy.
Social and economic crisis, and situation of violence and insecurity. Reception of immigrants by society: discrimination.
Family reunification: family networks. Labor regulations: immigration policy.

Source: Own elaboration.

The sole sociodemographic factor positively related to entrepreneurial agency is education. Those Venezuelan migrants who have a higher educational level are more motivated to start their own business, compared to those who have a lower one. This is a fundamental element that must be taken into account by inclusive development public policies based on the promotion of entrepreneurship in receiving countries, in which it is desirable that they provide opportunities for access to legal services (immigration permits, advice on labor, commercial and financial matters, access to banking and financing), and promote the generation of self- employment and formal employment.

These Venezuelans with a higher educational level normally inquire on the situation of the labor markets (formal and informal), labor and migration regulations, but also about aspects of the migratory culture in the receiving country, and about situations of discrimination (aporophobia or xenophobia) by employees and society in general, labor exploitation and underemployment. Likewise, it was observed that they focus on entrepreneurship as a means to generate their own income. This decision implies features such as determination, vision, persistence and responsibility, which combined with entrepreneurial qualities such as creativity and innovation could generate opportunity ventures (long life cycle).

The economic push factors of Venezuelan migration have their origin in hyperinflation and loss of purchasing power, which causes a majority population to emigrate, alone or accompanied, with the purpose of regrouping abroad and even helping relatives who have not migrated by sending them remittances.

Violence and insecurity can be counted in among the psychosocial factors that also motivate migration; despite the uprootedness and migratory grief caused by migration, the importance of the feeling of security is prioritized. Faced with adverse scenarios, the human being reacts either by confronting and generating more violence, paralyzing or fleeing. The latter seems to be the reaction of Venezuelans to the figures of violence and impunity in their country, which are among the highest in the world.

Further research could be built upon this study, related to sectors of the economy impacted by the entrepreneurship and innovation brought about by Venezuelan immigrants and their presence in the labor market; as well as further studies on migration policy and legal regulations that would allow the development of these entrepreneurial ventures in the main Latin American receiving countries, such as Colombia, Peru, Ecuador and Chile.

Translation: Fernando Llanas.

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Received: July 17, 2020; Accepted: May 24, 2021

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