Why latent entrepreneurs delay their launch to the market in Mexico

Abstract

Entrepreneurship fosters job creation and GDP growth, a must for emerging countries. Due to its strategic geographical position, the region of Jalisco, Mexico, is an attraction pole with more than 650 high-tech corporations, exporting a total value of USD 21 billion (around GBP 16.4 billion) annually in tech products and services, being micro and small and medium enterprises a significant part of their companies. In this paper, we introduce a new entrepreneurial perspective about latent entrepreneurship, and we propose a multigroup structural equation modelling (MSEM) model using global entrepreneurship monitor (GEM) data. The model explains why latent entrepreneurs delay launching to the market, based on their fear of failure, perceived opportunities, and the emulation effect formed when nascent entrepreneurs interact with other successful colleagues. The main finding of this study suggests that in Mexico latent entrepreneurs' fear of failure does not moderate the relationship between perceived behavioural control, entrepreneurial intentions, perceived opportunities, and the knowledge of other successful entrepreneurs.