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Institutional Approach and Enterprise Creation: Support Systems in the Case of Small City in Rural and Peripheral Areas of Portugal

Author

Listed:
  • Maria Jose Silva

    (University of Beira Interior (UBI) and NECE, Covilhã, Portugal)

  • Virgínia Trigo

    (ISCTE-IUL, Business School, Lisbon, Portugal)

  • Rute Antunes

    (University of Beira Interior (UBI) and NECE, Covilhã, Portugal)

Abstract

The research aims to identify and analyse the formal institutional factors in the environment that constrain the creation of industrial enterprises in small city in rural and peripheral areas of Portugal, namely Covilhã County. It has as reference sources several approaches about enterprise creation and institutional economic theory due to their adequacy to the study of the factors that influence enterprise creation by encompassing institutions, services, programs and support measures. With this analysis we try to evaluate the extent to which entrepreneurs know about and employ the available institutional programs/services. Investigation hypotheses are formulated and subject them to empiric tests. The results, from the offer point of view of the services/programs, show that, duplication of resources and efforts on the part of institutions in the region often occurs making coordination more difficult and alienating the demand (entrepreneurs). From the view point of the demand, we noticed that entrepreneurs may have a broad awareness of the institutions, but this does not imply that they use their programs and services. Therefore recommendations are made having in view a better coordination among the different institutions involved so that the programs they offer can be more effective in the future.

Suggested Citation

  • Maria Jose Silva & Virgínia Trigo & Rute Antunes, 2011. "Institutional Approach and Enterprise Creation: Support Systems in the Case of Small City in Rural and Peripheral Areas of Portugal," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(29), pages 258-272, February.
    • Handle: RePEc:aes:amfeco:v:13:y:2011:i:29:p:258-272
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    References listed on IDEAS

    as
    1. Urbano Pulido, D. & Díaz Casero, J. C. & Hernández Mogollón, R, 2007. "Evolución Y Principios De La Teoría Económica Institucional.Una Propuesta De Aplicación Para El Análisis De Los Factores Condicionantes De La Creación De Empresas /," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 13(3), pages 183-198.
    2. Díaz Casero, J.C. & Urbano Pulido, D. & Hernández Mogollón, R., 2005. "Teoría Económica Institucional Y Creación De Empresas /," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 11(3), pages 209-230.
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    Cited by:

    1. José Luis Alfaro Navarro & Víctor Raúl López Ruiz & Domingo Nevado Pena, 2013. "A theoretical intellectual capital model applied to cities," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 455-468, June.

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    More about this item

    Keywords

    entrepreneurship; enterprise creation; institutions; institutional economic theory;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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