IJMB Journal – Abstracts
International Journal of Management and Business
IJMB Volume X, Special Edition
Seed Capital and the Equation of Investment in Entrepreneurship
Mauricio Vladimir Umaña Ramírez
Catholic University of El Salvador, El Salvador
E-mail: mauricio.umana@catolica.edu.sv, mvumanar@gmail.com
ABSTRACT
The investments in seed capital of incubators in a country in a specific time horizon is a topic without scientific studies in developing economies. The same issue happens with the relation that these investments have with the increase of entrepreneurial projects that have been administered by the same funding.
Traditionally, the topic of entrepreneurship in El Salvador has been in the spotlight of various international and national funds, a database of some of the most common funds of ventures has been built. In recent years, the increase in projects is hypothesized to be due to the increase of funds annually in projects of entrepreneurship, and, therefore, we would be discouraging entrepreneurship at the country level if we left some incubators currently operating without funds.
The study is exploratory and descriptive, using econometric regressions. The results of the research are presented and an Investment Function in Entrepreneurship, which models the increasing behavior of projects in the seed capital funds is proposed, and an attempt is made to propose an equation model of the incubators of the sample based on the capital invested in the time horizon; this is called in this research The Equation of Investment in Entrepreneurship.
Finally, this research offers a discussion about investments in the future of entrepreneurship, which can contribute to the understanding of the creation of firms.
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