The Entrepreneur Between Two Circuits: The Critical Contribution of Milton Santos to Entrepreneurship Studies

This article delves into the contributions of Milton Santos (1926–2001) to the economic study of entrepreneurship. Santos made contributions to spatial economics, urbanization, and planning theories, being an important author to the field of regional and urban economics. His most famous idea is the “two circuits” of the urban economy. According to this approach, the urban economies in peripheral countries create two economic-urban circuits that are both distinct and connected. The superior circuit comes from the technological modernization and cultivates international relationships. High-value goods and networks and new technologies circulate through it. The inferior circuit works outside these networks. It consists of low-dimension activities from local populations. Santos elaborated this theory to understand urbanization in peripheral countries and to give voice to the ones left behind by the development process. He did not write directly on entrepreneurship. We argue, however, that his thoughts can be important to entrepreneurship studies. The entrepreneurship discourse, that had in Schumpeter one of its main sources, assumes that the entrepreneur has traits related to the superior circuit, such as access to resources and networks, which would not be available to entrepreneurs in the inferior circuit. We argue that Santos’ contributions can inform economic thought in entrepreneurship by calling attention to how literature can approach structural problems and contribute to making economics a more diverse discipline.