Entrepreneurship in Peru: a SWOT analysis

Abstract

The purpose of this research is to use the SWOT analysis to examine Peru's country conditions and identify areas for potential sources of entrepreneurial opportunities. Findings indicate Peru's main drivers of its economic activities are the energy, agriculture and tourism industries. However, insufficient infrastructure, crime, corruption, poor education and poverty limit economic development. Opportunities for entrepreneurship exist through a diversified economy with a favourable business environment. Although current entrepreneurial activity is mostly concentrated in the retail, hotel and restaurant sector, there is potential to increase entrepreneurial activity within the main economic activities as foreign investments are expected to increase Peru's export-driven industries. Because Peru's government efforts to support entrepreneurship and entrepreneurship education have been stagnant in the last decade, we offer recommendations for policy makers to increase entrepreneurial activities based on training and motivation to improve business conditions that would promote and encourage entrepreneurial behaviour.