FACTORS THAT DETERMINE THE FORMAL ENTREPRENEURSHIP OF YOUNG ENTREPRENEURS IN A DEVELOPING COUNTRY DURING A PANDEMIC: PERUVIAN CASE

ABSTRACT

According to a World Bank report, the informal sector represents around a third of GDP and more than 70% of employment (self-employment in more than 50%), with informal workers, mainly women and young people who have lost their jobs and/or They have no income due to the Covid-19 crisis. According to research based on the key elements according to Gartner (1985) are the external context, the person, the processes, and the company. Informal entrepreneurship develops due to the deficit of human, social and cultural capital, as well as discrimination, obstacles and barriers and exposure to precariousness (Heilbrunn, 2018;Wolfe et al., 2020);Factors that impact more among women entrepreneurs, due to social norms, time constraints, low entrepreneurial capacity and lack of financing (Oppedal & Garcia, 2020). [...]the following hypothesis emerges HI Gender is significantly related to the formal entrepreneurship of young entrepreneurs in a developing country during a pandemic. Currently, entrepreneurs seek to generate income, and prefer to start in the informal sector because they think that this will bring them more benefits, to this is added, the influence of family experience on the perception of formality as something negative (Benites et al.., 2021;Amesquita et al., 2018). [...]despite the fact that formality allows the growth of companies (Oppedal & Garcia, 2020;Assenova & Sorenson, 2017), informal companies are seldom formalized, in addition, when starting a business, access to initial capital is It is limited, and although government programs offer significant initial funding for the development and growth of a formal enterprise, it is also necessary to strengthen support networks and follow-up mentoring to ensure the effectiveness of these programs (Barron, 2020).