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Using high-potentialfirms as the key to achieving territorial development☆ Pablo Pinazo-Dallenbach a,⁎,AliciaMas-Tur b,BegoñaLloria b aESIC Business and Marketing School, Av. de Blasco Ibáñez, 55, 46021 València, SpainbDepartamento de Dirección de Empresas, Facultad de Economía, Universitat de València, Avinguda Tarongers, s/n, 46022 València, Spain abstract article info Article history:

Received 1 February 2015 Received in revised form 1 July 2015 Accepted 1 September 2015 Available online 21 October 2015 Keywords:

El Salvador Entrepreneur fsQCA Gender Insecurity Motivation This study examines which entrepreneurial antecedents like education, gender, motivation, and age; and envi- ronmental variables like citizen insecurity enable high-potentialfirms to establish themselves and act as the key to territorial development. The inclusion of the variable citizen insecurity is unusual, but several authors note how a violent context can affect entrepreneurial activity in Latin America. Insecurity generates massive expenses for entrepreneurs, who must invest to protect themselves against violence and cover the extraordinary expenses arising from this violence. The data analysis technique is fuzzy-set qualitative comparative analysis (fsQCA), a powerful technique for analyzing complex causal relationships. The results highlight that policies should focus on reducing levels of citizen insecurity, among others, to lead to the creation of high-potential firms in countries similar to El Salvador.

© 2015 Elsevier Inc. All rights reserved. 1. Introduction Interest in entrepreneurship in Latin America is greater than ever be- fore. This interest owes to the extent to which entrepreneurship con- tributes to economic growth, productivity, and the rejuvenation of productive and social networks (Audretsch & Thurik, 2001; Kantis, Ishida, & Komori, 2002). Entrepreneurship helps to refresh regional identity, driving innovation and creating job opportunities (Audretsch & Thurik, 2001). Likewise, innovation and growth contribute signifi- cantly to citizens' prosperity and well-being (Acs & Armington, 2006; Audretsch, 2007; Levie & Autio, 2008; Schramm, 2006).

Latin America has one of the highest levels of entrepreneurial activ- ity in the world (Acs, Desai, & Klapper, 2008; Allen, Elam, Langowitz, & Dean, 2008; Weeks & Seiler, 2001), yet their economies are much less dynamic than many other emerging economies are. This lack of dyna- mism in Latin American economies owes mainly to high levels of neces- sity entrepreneurship and the low value added of entrepreneurial ventures in the region (Amorós & Cristi, 2008; Autio, 2005; Kantis, Angelelli, & Moori-Koenig, 2004; Minniti, Bygrave, & Autio, 2006). In fact, Latin American countries have poor technology and innovation development (López-Claros, Altinger, Blanke, Drzeniek, & Mía, 2006).

Largefirms absorb all technology- and innovation-based opportunities, and only a few small enterprises have the necessary capabilities tobecome high-potentialfirms (Acs & Amorós, 2008). This paucity of technology- and innovation-based smallfirms creates problems when trying to identifying them. Nevertheless, the study of such companies is of interest because innovation not only expressly aids performance, but also contributes to economic well-being and wealth creation in the country of origin (Braunerhjelm, 2011; Holcombe, 1998; Mas-Tur & Soriano, 2014; Wennekers & Thurik, 1999).

Unlike the abundant literature on entrepreneurship in Europe and North America, research on entrepreneurship in Latin America is scarce (de Arruda, 2009). Tofill this research gap, the current study examines which entrepreneurial characteristics (education, gender, motivation, and age) and environmental variables (like citizen insecurity) enable high-potentialfirms to establish themselves and act as the key to terri- torial development. The aim of this research is to produce a series of rec- ommendations for policymakers in Latin America.

The inclusion of the variable citizen insecurity is unusual in this type of study (Brück, Naudé, & Verwimp, 2013), but several authors note how a violent context can affect entrepreneurial activity in Latin America (IDB, 2014; Schwab et al., 2009; Vidal, 2008; World Bank, 2011). Accordingly, this study focuses on El Salvador, which has one of the lowest levels of citizen insecurity in Latin America (World Bank, 2011).

To achieve these research objectives, the study uses 2014 Global Entrepreneurship Monitor (GEM) data for El Salvador. The GEM project is the leading global study of entrepreneurial activity, analyzing the issue of entrepreneurship from the perspective of the entrepreneur.

By applying a uniform method across all participating countries, the GEM's national teams assess entrepreneurial activity with three aims:

(1) to compare entrepreneurial activity among countries, (2) to identify Journal of Business Research 69 (2016) 1412–1417 ☆ The authors thank Norat Roig Tierno, Polytechnic University of Valencia, for the valuable help in the methodological part.

⁎Corresponding author.

E-mail addresses:[email protected](P. Pinazo-Dallenbach),[email protected] (A. Mas-Tur),[email protected](B. Lloria).

http://dx.doi.org/10.1016/j.jbusres.2015.10.117 0148-2963/© 2015 Elsevier Inc. All rights reserved. Contents lists available atScienceDirect Journal of Business Research the factors that enable entrepreneurial activity in each country, and (3) to propose measures so that policymakers can enhance entrepre- neurial activity in certain countries or regions (Bosma & Levie, 2010).

These characteristics are consistent with the goals of the present study and provide evidence of why such research is necessary. The data analysis technique in this study is fuzzy-set qualitative comparative analysis (fsQCA), which is a powerful technique for analyzing complex causal rela- tionships in studies with medium-sized samples (Eng & Woodside, 2012).

Section 2presents a review of the literature on high-potentialfirms and a discussion of entrepreneurial and environmental characteristics that may affect the creation of this type offirm.Section 3explains the fsQCA method and sets forth the results of the analysis.Section 4pre- sentsfindings. Finally,Section 5offers the main conclusions of the study and discusses some policy implications.

2. Theoretical framework The existence of high-potentialfirms is crucial because of their con- tribution to a territory's economic growth and their role in improving public well-being. The following sub-sections summarize the literature on the key characteristics of high-potentialfirms as shown inFig. 1.

2.1. High-potentialfirms Gallagher and Miller (1991)present a classification offirms by growth, using the termflyersto refer tofirms with strongfinancial growth.Landstrom (2005)offers a modification ofBirch, Haggerty, and Parsons's (1997)classification, explaining thatgazellesarefirms that drive growth and job creation—suchfirms not only grow in financial terms, but also in terms of personnel (Birch et al., 1997; Kirchhoff, 1994; Storey, 1994; Soriano & Dobon, 2009; Westhead & Cowling, 1995).Henrekson and Johansson (2010)describe this type of firm in detail, noting that in addition to creating a disproportionate number of jobs, thesefirms are generally young, high-growth compa- nies.Haltiwanger, Jarmin, and Miranda (2013)also support this view.

Wong, Ho, and Autio (2005)point out that although manyfirms are technologically innovative, high-potentialfirms actually belong to a select group of enterprises. Within the GEM framework,Autio (2003) highlights four characteristics of high-potentialfirms: the potential to create jobs quickly, a capacity for innovation that enables expansion, a high proportion of overseas customers, and use of the latest technology.This section presents a literature review of entrepreneurial charac- teristics that may affect the creation of high-potentialfirms in emerging countries, focusing on Latin America, particularly El Salvador. The liter- ature review covers entrepreneurial profile variables (educational attainment, entrepreneurial motivation, age, and gender) and citizen in- security, which policymakers attempt to make more conducive to entrepreneurship.

2.2. Educational attainment In many cases, entrepreneurs prefer self-teaching as a learning method after they start a business (Martin & Halstead, 2003).Hughes (2001)refers to this self-learning as informal learning. Nevertheless, entrepreneurship training is becoming increasingly important for the society of the future (Lee, Lim, Pathak, Chang, & Li, 2006), and entrepre- neurship training in most cases comes from formal education. Several studies report that entrepreneurs who lack training are unable to per- form certain key business functions, especially in management and modern technology use (Lee, Ribeiro, Olson, & Roig, 2007; Lerner & Almor, 2002). Conversely, a highly qualified workforce is conducive to high value added innovation-based entrepreneurship, which increases economic dynamism (Minniti et al., 2006).

AsAlburquerque (2004)points out, a country's educational offer should meet the innovation needs of the local system of production by catering to its specificprofile. A basic generalist education is insufficient; instead, the education system must satisfy the specific needs of the local system of production and encourage creativity and new technology adoption.

AbackgroundinPorter's (1990)three stages of economic develop- ment helps to frame this issue within the existing theory. Thefirst stage is the factor-driven stage, whereby economies rely on the primary sector and on activities that are natural resource or work intensive. The second stage is the efficiency-driven stage, whose foundations lie in the secondary sector and the use of economies of scale. The third andfinal stage is the innovation-driven stage, whose defining characteristics are the growth of the services sector, R&D activities, and knowledge management. Numerous studies highlight the benefits of knowledge- based economies with regard to the economic and social development of territories (Audretsch, 2007; Levie & Autio, 2008; Schramm, 2006).

Most Latin American economies, however, are in the efficiency-driven stage (López-Claros et al., 2006), and they must foster innovation to reach the technological frontier and become knowledge-based econo- mies, a key characteristic of the innovation-driven stage (Porter, 1990).Amorós, Fernández, and Tapia (2012)note that economic trans- formation in terms of both economic growth and institutional develop- ment is lower in some Latin American regions than in other emerging countries such as Korea, Singapore, Israel, and Ireland. According to some authors, this lack of economic growth and institutional develop- ment owes to chronic weaknesses in Latin America's education and knowledge creation. Acs and Amorós argue that these weaknesses in education are the reason for greater difficulties in starting entrepre- neurial ventures or creating businesses. Despite progress in terms of de- mocracy, property rights, and macroeconomic stability in South America in the last 20 years, areas such as education, knowledge crea- tion, and economic reform remain weak (Acs & Amorós, 2008).

According to the Multipurpose Household Survey (Encuesta de Hogares de Propósitos Múltiples) by the El Salvador national statistics in- stitute (DIGESTYC, 2012), educational attainment in El Salvador is insuf- ficient. The average schooling level of the population is low. Only 32% of young people are in secondary education, andUNESCO (2008)indicates that the quality of this education is poor. Likewise, only 20% of young people are in higher education, and the offer fails to meet the needs of the territory, asUSAID (2012)explains in its report on Higher Education in El Salvador. The 2012 GEM report (Sánchez-Masferrer, 2013) stresses the low attendance levels in El Salvador's higher education system. The report also explains that necessity entrepreneurship is common among Source: Com piled b y the authors Fig. 1.Theoretical model Source: Compiled by the authors.1413 P. Pinazo-Dallenbach et al. / Journal of Business Research 69 (2016) 1412–1417 individuals with high educational attainment because these individuals are unable to enter the labor market.

Proposition 1.The creation of a high-potentialfirm depends on the entrepreneur's educational attainment.

2.3. Entrepreneurial motivation The GEM study (Bosma, Jones, Autio, & Levie, 2008; Guzmán-Cuevas, Cáceres-Carrasco, & Soriano, 2009; Reynolds, Camp, Bygrave, Autio, & Hay, 2002)identifies two types of entrepreneurial motivation. An opportunity entrepreneur is an individual who starts a venture to pur- sue a market opportunity. Opportunity entrepreneurs obtain their in- come by applying or creating knowledge and technology. Therefore, this type of entrepreneur has strong innovation capacity (Headd, 2003; Kelley et al., 2011) and makes a meaningful contribution to eco- nomic growth. In contrast, a necessity entrepreneur is an individual who starts a venture to avoid unemployment (Kelley et al., 2011; Reynolds et al., 2002). Necessity entrepreneurs often have a shortage of capabilities necessary to start successful entrepreneurial ventures and lack innovative potential (Sternberg & Wennekers, 2005).

Numerous studies demonstrate that opportunity entrepreneurs are more likely to succeed than necessity entrepreneurs are. Most authors conclude that opportunity entrepreneurship has a positive relationship with performance (Headd, 2003; Rey-Martí, Porcar, & Mas-Tur, 2015; Reynolds et al., 2002; Van Praag, 2003). In addition, this positive rela- tionship has ties to innovation in the opportunity entrepreneurship pro- cess (Ho & Wong, 2007).

Amorós and Cristi (2008)report that less developed countries have high levels of entrepreneurship, but most of this entrepreneurship arises out of necessity. As medium-sized and largefirms grow and cre- ate jobs, they absorb these necessity entrepreneurs. In Latin America, the goal is to encourage opportunity entrepreneurship by applying in- novations and adding value to goods and services to follow dynamic en- trepreneurship models.Wennekers, Van Stel, Thurik, and Reynolds (2005)argue that policymakers should foster innovative entrepreneur- ship so that entrepreneurs can create new and betterfirms with novel business models. In El Salvador, 39% of entrepreneurship is necessity entrepreneurship (Sánchez-Masferrer, 2013).

Proposition 2.The creation of a high-potentialfirm depends on the entrepreneur's motivation when starting the business.

2.4. Age and gender The influence of an entrepreneur's age on business creation and suc- cess is unclear. The literature suggests the absence of a direct relation- ship between age and profit growth, asBates (2002), andLerner and Almor (2002)point out.Bruce (1999)reports that the likelihood that women younger than 40 start an entrepreneurial venture is low. Fur- thermore, male entrepreneurs tend to be younger than women entre- preneurs are (Akehurst, Simarro, & Mas-Tur, 2012; Singh, Vinnicombe, & Johnson, 2001). Nevertheless,Minniti and Bygrave (2001)report that patterns in entrepreneurial activity do not vary across countries and nor does gender with respect to the entrepreneur's age. Finally, the businesses that young women run tend to encounter greater diffi- culty in securingfinancing because investors and creditors question young women owners' creditworthiness (Coleman, 2000). Numerous studies show that developed and developing regions are failing to harness the potential of women entrepreneurs—the capability of women to drive economic growth through entrepreneur- ship (Terjesen & Amorós, 2010). Women entrepreneurship, particularly in activities with high value added, is fundamental for the social and economic progress of developing countries (Terjesen & Amorós, 2010).Women entrepreneurs are less common in Latin America than in more developed European and North American countries, although the amount of women entrepreneurs in Latin America is growing (Acs et al., 2008; Allen et al., 2008; Weeks & Seiler, 2001). Nevertheless, the level of women entrepreneurship in Latin America is higher than in other emerging countries (Bosma et al., 2008), although most women entrepreneurs are necessity entrepreneurs (Terjesen & Amorós, 2010).

Women entrepreneurship in Latin America covers a broad range of sec- tors and is expanding to other areas of the economy. Gender differences, however, are important, particularly when assessing incentives for starting a business (Allen et al., 2008; Amorós & Pizarro, 2007).

Gender inequality means that women are at a disadvantage with respect to men, even when they have skills, knowledge, and a posi- tive disposition toward entrepreneurship (Amorós & Pizarro, 2007; Mas-Tur & Moya, 2015). Thus, one of the main problems facing women entrepreneurs in Latin America is access tofinancing for their businesses (de Vita, Mari, & Poggesi, 2014). This shortage of capital forces them to use their own savings to start their businesses (Smith-Hunter & Leone, 2010a, 2010b). Women entrepreneurs in Latin America start ventures mostly in sectors such as retail, although the role of women is becoming increasingly important for Latin American economies because of women's growing participation in the labor market and in entrepreneurial activity (Amorós & Pizarro, 2007). This tendency is also true in El Salvador, and the rate of women entrepreneurship continues to grow, albeit mostly because of necessity entrepreneurship (Sánchez-Masferrer, 2013).

Proposition 3.The creation of a high-potentialfirm depends on the entrepreneur's age and gender.

2.5. Citizen insecurity Citizen insecurity has two components (UNDP, 2009):objective insecurity, or the number of acts of violence that occur within a territory (CAF, 2010; FUNDAUNGO, 2012), andsubjective insecurity, or the per- ception of the degree of risk to citizens. The two components share a strong link to one another, and they both have a variety of effects on activities that help territorial development.

Numerous reports by international bodies indicate that citizen inse- curity generates massive expenses for entrepreneurs, who must invest to protect themselves against violence and cover the extraordinary expenses arising from this violence. These costs can have a strong, di- rect, negative effect onfirms' profits (IDB, 2014; Schwab et al., 2009; Vidal, 2008; World Bank, 2011). Costs from investment in violence pre- vention measures such as alarm systems, bodyguards, and even barbed wire fencing are common. Stolen merchandise and monthly or weekly payments to protection rackets constitute a source of extraordinary losses that can involve large amounts of money and become a severe burden for entrepreneurs. These payments to protection rackets act as an illegal tax to guarantee the protection of the area's residents, includ- ing entrepreneurs (UNDP, 2013; World Bank, 2011). Thus, an area's dominant criminal organization pledges not to attack residents if they make these protection payments.

Insecurity also reduces worker productivity because of increases in work absenteeism and the restriction of working days to daylight hours (World Bank, 2011). When violence escalates, workers remain in their homes to ensure personal safety. In violent areas, gangs reg- ularly impose curfews, banning people from being out on the street after a certain time, normally nightfall. The aim of these curfews is to draw attention to rival gangs entering the area and to remove possi- ble witnesses from a potential crime scene (UNDP, 2013). The delimita- tion of each gang's turf creates a system of invisible borders that are difficult for residents of the area to cross. These invisible borders pre- vent worker mobility and the mobility of goods, increasing the risk of robbery and extortion for any worker trying to cross these borders. 1414P. Pinazo-Dallenbach et al. / Journal of Business Research 69 (2016) 1412–1417 Changes in transit routes by workers are necessary to protect the mer- chandise and the workers themselves. These changes in route reduce productivity and create logistical inefficiencies (UNDP, 2013).

The management may deliberately have to reduce its productivity to safeguard the interests of the business. Many managers strategically abandon theirfirms by reducing or even halting investment so that the business seems less attractive to criminals. Hence, somefirms fail to reach optimum efficiency and may even turn down market opportu- nities to ensure their survival and the safety of their workers (UNDP, 2013).

Brockhaus (1982)identifies three attributes from the literature that have strong ties to entrepreneurial behavior: need for achievement, internal locus of control, and propensity to take risks.Thomas and Mueller (2000)strengthen this hypothesis by adding a fourth attri- bute: innovative attitude. Exposure to violence has psychological conse- quences that affect individuals in the short and long term (Anckermann et al., 2005; McCloskey, Southwick, Fernández-Esquer, & Locke, 1995; Rosario, Salzinger, Feldman, & Ng-Mak, 2008; Snider et al., 2004; Staub, 2003) and that can affect attributes relating to entrepreneurial behavior and innovative attitude. Failing to fully develop these capabilities not only affects people's ability to detect market opportunities and take risks to achieve profits, but also affects the capability to create, develop, and generate innovations to start ventures efficiently and effectively.

Despite the scope of the discussion on citizen insecurity, studies describing the micro-level effects of violent conflict and its impact on entrepreneurship are scarce (Brück et al., 2013). El Salvador has one of the highest murder rates in the world (World Bank, 2011), which can affect the creation of high-potential entrepreneurial ventures.

Proposition 4.The creation of a high-potentialfirm depends on the degree of citizen insecurity in the entrepreneur's territory.

3. Data and method This study analyzes 2014 GEM data for El Salvador. From the original sample, a data cleansing process yielded afinal sample composed of data on 279 entrepreneurs. Fuzzy-set qualitative comparative analy- sis (fsQCA) tests the propositionsin this study. fsQCA enables sys- tematic analysis of cases tofind patterns that lead to an outcome (Ragin, 2008). Originally, scholars used fsQCA primarily for analyz- ing small or medium-sized data sets, but results from fsQCA using large data sets are equally valid (Fiss, 2011; Woodside, 2012). fsQCA identifies necessary and sufficient conditions to cause an outcome (Ragin, 2008).

According toRagin (2008), andSchneider and Wagemann (2012), fsQCA has three phases. Thefirst phase involves calibrating the condi- tions and the outcome. Calibration consists of determining whether a condition is fully in a set (1), fully outside a set (0), or at the point of maximum ambiguity (0.5) (Ragin, 2008 ). The second phase consists of performing an analysis of necessary conditions to determine whether a condition is necessary to cause the outcome. The third phase is to perform an analysis of sufficient conditions to determine which conditions or combinations of conditions are sufficient to cause the outcome.

Table 1shows the codification and definition of the conditions and the outcome and presents the thresholds for calibration.

Calibration of the outcome (high-potentialfirms) usedAutio's (2003)criteria, with modifications to adapt criteria specifically for El Salvador. Four criteria defined the outcome (high-potentialfirms):

job creation potential, degree of competition, presence of foreign customers, and the use of new technologies. A high-potentialfirm (i.e., set-membership value of 1 following calibration) must create jobs in the next 5 years, use new technologies, have more than 25% of foreign customers, and face little competition fromfirms offering the same products or services. Conversely, a non-high-potentialfirm(i.e., set-membership value of 0 following calibration) has the opposite characteristics. Cases received a membership value between 0 and 1 depending on the extent to which they displayed these characteristics.

AsTable 1shows, the method for calibrating the conditions was the direct calibration method (Ragin, 2008).

4. Findings This section presentsfindings from the analysis of necessary condi- tions (Ragin, 2008). In addition, results in this section show whether any condition leads to the creation of non-high-potentialfirms.

No condition is necessary to cause the outcome because no condition has a consistency value greater thanSchneider, Schulze-Bentrop, and Paunescu’s(2010)threshold of 0.9, asTable 2shows. The creation of a high-potentialfirm or the creation of a non-high-potentialfirm owes toseveralcausalconfigurations (recipes).

Table 3presents results from the analysis of sufficient conditions.

Sevencausalconfigurations lead to the creation of high-performance firms in El Salvador. No single condition appears consistently across all recipes.

Causal configurations with greater coverage have greater empirical relevance (Ragin, 2008). The following causal configuration (configura- tion 4) denotes the con figuration with the highest coverage (“*”means the logical operator AND): Table 1 Outcome and conditions: description and calibration.

Outcome/Conditions Description Calibration Outcome High-potentialfirms (HPF)Outcome has 4 items, as per Autio (2003)Distribution from fully in (1) high-potentialfirms to fully out (0) non-high-potentialfirms (Autio, 2003) Insecurity (INS) Entrepreneur's subjective insecurity measuring the entrepreneur's concern for the effects of insecurity on the business(1) Concerned (0.5) Neither concerned nor unconcerned (0) Unconcerned Gender (GEN) Dichotomous condition (1) Man (0) Woman Age (AGE) Continuous condition Direct calibration method (Ragin, 2008) with three points (95%, 50%, and 5%)→ (25, 40, and 55) Entrepreneurship (ENT)Necessity or opportunity entrepreneur(1) Opportunity (0.5) Other (0) Necessity Education (EDU) Categorical condition showing educational attainment (11-point scale)Direct calibration method (Ragin, 2008) with three points (95%, 50%, and 5%)→ (6, 3, and 1) Table 2 Analysis of necessary conditions.

Outcome: HPF ~ HPF Conditions tested: Consistency Coverage Consistency Coverage GEN 0.456380 0.680509 0.365842 0.319492 ~ GEN 0.543621 0.594099 0.634158 0.405901 INS 0.776642 0.640047 0.760795 0.367213 ~ INS 0.232168 0.623664 0.254245 0.400000 ENT 0.567037 0.662264 0.523338 0.357982 ~ ENT 0.450299 0.617296 0.506259 0.406467 EDU 0.634215 0.786454 0.742358 0.539150 ~ EDU 0.628361 0.806360 0.705968 0.530596 AGE 0.592612 0.733986 0.652304 0.473180 ~ AGE 0.574652 0.738353 0.633285 0.476559 Note: (~) means absence.1415 P. Pinazo-Dallenbach et al. / Journal of Business Research 69 (2016) 1412–1417 Age * Education * Entrepreneurship (coverage: 0.23, consistency:

0.88).

The component conditions in configuration 4 illustrate the impor- tance of entrepreneurial profile in creating high-potentialfirms in El Salvador. In configuration 4, the entrepreneur is young, has high educa- tional attainment, and is an opportunity entrepreneur. Thisfinding sup- portspropositions 1 and 2.

Likewise, the condition of being a woman appears in four of the seven causal configurations. Thisfinding supportsproposition 3and in- dicates that women entrepreneurs help to create high-potentialfirms.

Configurations 3 and 5, which have the highest coverage scores after configuration 4, are also of interest because both of these configurations contain the condition denoting absence of citizen insecurity. These two configurations imply that entrepreneurs with little concern for the effect of insecurity on their businesses create high-potentialfirms.

Thisfinding supportsproposition 4.

Finally, analysis of the negation of the outcome yields configurations with coverage scores lower than 0.25, suggesting that the configura- tions are irrelevant.

5. Conclusions This study identifies the entrepreneurial and environmental charac- teristics that enable the creation of high-potentialfirms as a key ele- ment of territorial development. The study uses fsQCA to analyze 2014 GEM data for El Salvador.

Within the GEM framework,Autio (2003)identifies four character- istics of high-potentialfirms: (1) the potential to create jobs quickly, (2) a capacity for innovation that enables expansion, (3) a high propor- tion of overseas customers, and (4) use of the latest technology. Using these conditions to define high-potentialfirms in a country like El Salvador is difficult because fewfirms actually attain the minimum threshold levels to meet each criterion. El Salvador's economy is in the efficiency-driven stage (López-Claros et al., 2006), so the economy has yet to reach the technological frontier necessary for the creation of high-potentialfirms.

Findings are consistent with the literature in supporting the idea that opportunity entrepreneurs with high educational attainment are more likely to create high-potentialfirms. Likewise, findings show women's potential in terms of creation of high-potentialfirms. Notably, citizen insecurity is an important issue. In response to a paucity of re- search discussing the effects of citizen insecurity on entrepreneurship, this study'sfindings show that citizen insecurity within a territory can affect entrepreneurial activity, thereby hindering the region's social and economic development.

This study shows that no single combination of conditions leads to the creation of high-potentialfirms in countries similar to El Salvador.

Policymakers should therefore foster all the conditions that appear inthe fsQCA causal configurations. Policies should focus on improving access to higher education, encouraging women entrepreneurship, reducing levels of citizen insecurity, and fostering the entrepreneurial spirit to seek and exploit market opportunities.

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