Key Factors of Dynamic SMEs in Colombia Using GEM Data

Abstract

This chapter contributes to the public policy discussion about the key factors related with dynamic SMEs in Colombia. Authors analyze the case of Colombia through a quantitative approach with a binomial logistic model to estimate the level of association between selected independent variables and dynamic SMEs in the country using GEM data 2017. One of the most important outcomes was that the export activity as well as the level of education of entrepreneurs and previous business experience increase the propensity of Dynamic SMEs in the country. In contrast, variables such as seed capital at the beginning of business and business training did not show a significant relationship with Dynamic SMEs for this case. Notwithstanding the prosperity entrepreneurship ecosystem in Colombia, only 3% of entrepreneurs and their companies are classified as dynamic by authors' model, and there are still great challenges to changes in public policy toward knowledge-intensive entrepreneurship.