Internal and contextual determinants of entrepreneurial activity: evidence from Ecuador

Purpose This study aims to examine how internal (personal values) and external (institutional) factors interact to determine entrepreneurship in Ecuador, identifying important differences relative to developed countries. Design/methodology/approach Using Schwartz’s theory of universal values and institutional theory, the authors combine individual and cultural approaches. They empirically analyze a sample of 1,264 potential entrepreneurs using partial least squares structural equation modeling. Findings Both individualistic (self-enhancement) and collectivist personal values (conservation and self-transcendence) act as motivational resources that positively drive entrepreneurial intention. Entrepreneurs in Ecuador are less open to risk and change, weakening innovation. However, institutional barriers exert a two-way influence, hindering execution while simultaneously acting as a compensatory mechanism that strengthens the perceived likelihood of business creation. Research limitations/implications Single-country data limits broad applicability. The findings represent exploratory results that invites further confirmatory research in similar emerging economies. Further research in other emerging contexts is needed to validate the model and assess longitudinal value-behavior changes. Practical implications Entrepreneurial support programs should align with local value systems, integrating cultural and social legitimacy into policy and education. Standardized models from developed economies may lack contextual relevance. Social implications Because conservation and self-transcendence act as motivational assets amid institutional voids, training initiatives should foster collective capabilities, such as cooperative modeling and community-oriented problem-solving. Originality/value To the authors’ knowledge, this study analyzes entrepreneurial behavior through a multilevel perspective in Ecuador and contributes to institutional voids theory by showing how advanced human capital leverages personal values to bypass formal environmental obstacles as a resilient mechanism for economic survival.