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Effects of corruption on emerging entrepreneurship among college students

Author

Listed:
  • Cesar Ignacio León Quillas

    (Universidad del Valle)

  • Edwin Arango Espinal

    (Universidad del Valle)

  • Carlos Hernán Suárez Rodríguez

    (Universidad del Valle)

  • Esteban Largo Ávila

    (Universidad del Valle)

Abstract

Introduction: In emerging economies, corruption can act as either a barrier or a facilitator of entrepreneurship. Understanding this relationship is crucial in contexts characterized by institutional weakness. Objective: To analyze the association between nascent entrepreneurship and exposure to bribe requests among college students in southwestern Colombia. Methodology: Quantitative cross-sectional study with a survey administered to 391 students between 2022 and 2023. Linear probability and probit models were estimated to calculate marginal effects. Results: Exposure to bribery is associated with a higher likelihood of being a nascent entrepreneur (13.93 p.p., expanding to 23.38 p.p.) among those with family business backgrounds. The relationship varies according to university valuation, negative among those who perceive a high contribution, and positive among those who perceive academic deficiencies. Discussion: The findings show the coexistence of grease in the wheels and sand in the wheels effects, suggesting that the association depends on the individual’s educational profile. Conclusions: Corruption distorts entrepreneurial incentives; reducing bureaucratic barriers and strengthening institutional ethics in higher education are recommended.

Suggested Citation

  • Cesar Ignacio León Quillas & Edwin Arango Espinal & Carlos Hernán Suárez Rodríguez & Esteban Largo Ávila, 2026. "Effects of corruption on emerging entrepreneurship among college students," Revista Tendencias, Universidad de Narino, vol. 27(02), pages 88-118, July.
    • Handle: RePEc:col:000520:023324
    DOI: 10.22267/rtend.26272.298
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    Keywords

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    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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