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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