Endeavor

market characteristics that directly impact the chances of success of an entrepreneur in a given market. Almost every major research on entrepreneurship produced in the 2000s recognizes the centrality of these factors to explain the variation in entrepreneurial levels. Entry barriers, big concentration of companies in the industry, economic growth and profit margins are some of these key factors. Some are specific to each industry or sector of the economy, such as entry barriers. Others, however, affect virtually all entrepreneurs. In the framework of this study, these factors are fairly well represented in the Regulatory Environment, Infrastructure, and Market Conditions determinants, emphasizing those that are not specific to any industry. The Regulatory Environment determinants portray the bureaucratic diffi - culties of opening a new business and the tributary costs that come along with it, which directly affect the ability of entrepreneurs to keep their businesses and make them profitable. The infrastructure determinants, in turn, are directly related to the costs involved in maintaining the business. Urban conditions and costs of each city — for example, the cost of the square meter, transportation costs or the resulting asset risk of urban violence — are fundamental to the decision of the entrepreneur to open, or not, a business. Business opportunities and access to markets are also a result of the cities infrastructure. The existence of an adequate network of intercity transport provides greater integration of the entrepreneur with new markets. In Endeavor Brazil's experience with entre - preneurs, issues related to bureaucratic barriers and the lack of adequate infrastructure for business are the most frequent complaints. The basic economic conditions, portrayed in the market determinant, directly influence the entrepreneurial poten- tial of a country or city. There are more opportunities to start a business in larger markets, more developed and growing. There are more potential customers in places where people have higher income, governments or com- panies have more purchasing power. Finally, the level of development and per capita income of the population also have an indirect impact on the total number of entrepre- neurs in the economy. Regulatory and Market Environment determinants are common to OECD, ANDE and Endeavor Brazil's frame- works. The first, however, does not take into consideration Infrastructure as a determinant, a virtue of having been designed for the analysis of developed countries. Following the recommended framework developed by ANDE, the Infrastructure determinant was included in this study, ad - justing its use to cities. If market conditions, the regulatory environment and infra- structure define opportunities for entrepreneurs, access to capital is the key factor for awakening new entrepre- neurs and business expansion. Hoffman (2007) points out that almost all studies on entrepreneurship highlight the importance of available capital to entrepreneurs. Access to capital is particularly critical for new entrepreneurs and startups, for which the assessed risk of their business in- creases the costs and makes it harder obtaining financial resources. Although it's conventionally assumed that the supply of capital should not be public policy, the difficulty of obtaining capital for new ventures, due to its risky na- ture, makes it necessary for the government to intervene with policies that will help find funding. Innovation is the factor with which entrepreneurship is more intimately associated with, despite the centrality of business opportunities and the crucial role of access to capital in explaining the variation of entrepreneurial activity between countries, regions and cities. Their rela - tionship is a two-way street. On the one hand, innovation and technological development are the driving force of entrepreneurship; on the other, entrepreneurs, and their business models, are expected to be the agents respon- sible for spreading innovation and change. In this study's framework, the Innovation determinant contemplates the intensity of investments in research and development by governments and companies and the innovation potential of local agents. The outlooks on entrepreneurship that focus on individu- als tend to point to the impact of the educational level of the population in the intensity of entrepreneurial activity. Not only do more educated entrepreneurs have a great- er chance of success, also, the ability to recruit people for their organizations; partially explaining the ability to maintain and expand their businesses. Analytical perspec- tives centered around the organization's resources usually give a greater importance to the arrangement of profes- sionals and talents in order to explain the performance of an organization (Endeavor Brazil, 2013). In particular, Brazilian entrepreneurs with whom Endeavor has a close relationship with have pointed to the lack of professionals as a major obstacle in the expansion of their business. In 89

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