owners , not only emotionally but economically as well . According to Javier Calderon , who is an external investigator of GEM , entrepreneurs have to invest around 20 % of their earnings to protect themselves and their businesses from crimes ( Batres ).
3 . Risk Aversion
Guatemalans are not very fond of changes and risk ; the fear of embarrassment and of failing has stopped many from taking new business ventures ( Intercultural Management ). Eliminating this fear will not be easy since it has already been engrained in the minds of people ; however , if the proper economic support and coaching was provided by the government and institutions in charge of innovation and development , people will feel encouraged to take the first steps to become entrepreneurs .
CONCLUSION
After analyzing the situation of the country , it is clear that Guatemala has a vision , but also many stones in its path that make it a lot harder for it to become a prosperous developing country . One of these “ stones ” is the government and its leaders , which have not being able to establish democracy as the basis of the governmental system . This has created a trickledown effect , which can easily be seeing by the leadership and management style used in this country : the autocratic . On the other hand , good things can be said about Guatemala ’ s entrepreneurial capacity . However , there are social issues that need to be taken care of so that people can prosper . Unfortunately , the government needs to change first . If those at the top do not change their ill leadership style nor give their followers any direction , then the country will remain stagnated in an environment that does not enable success or growth .
SOURCES
" Authoritarian Leadership ." Business Dictionary . com . N . p ., n . d . Web . 1 Mar . 2013 . < http :// www . businessdictionary . com / definition / authoritarian-leadership . html >.
Batres , Alexis . " Emprendedores Por Necesidad ." El Periodico . N . p ., 09 Nov . 2012 . Web . 01 Mar . 2013 . < http :// elperiodico . com . gt / es / 20121109 / economia / 220407 />.
Centro De Investigaciones Económicas Nacionales . " Micro , Pequenas , Y Medianas Empresas En Guatemala ." MejoremosGuate . N . p ., May 2010 . Web . 01 Mar . 2012 . < http :// www . mejoremosguate . org / cms / content / files / diagnosticos / economicos / Lineamientos _ PYMES _ 05-05- 2011 . pdf >.
" Cultural Information - Guatemala ." Intercultures . ca . Centre for Intercultural Learning , n . d . Web . 01 Mar . 2013 . < http :// www . intercultures . ca / cil-cai / ci-ic-eng . asp ? iso = gt >.
Facultad De Ciencias Economicas . Global Entrepreneurship Monitor : Guatemala 2011-2012 . Rep . no . 2623 . Universidad Francisco Marroquin , Nov . 2012 . Web . 01 Mar . 2012 . < http :// www . gemconsortium . org / docs / download / 2623 >.
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