Regional Institutional Factors and Tourism Entrepreneurship: The Case of Two Portuguese Municipalities
Maria de Lurdes Calisto, Victor Alves Afonso, Maria Teresa Costa, Jorge Umbelino

It is widely recognized the role of regional institutions in shaping the perception of potential business founders regarding the favourability of the environment to start a business. Entrepreneurship has been mostly associated with individual actions. However, policies are relevant because entrepreneurs do not operate in isolation from their contexts. Although the competitiveness of the destination largely influences the creation of tourism businesses, literature has demonstrated that institutional variables might also play a role. The goal of this study is to explore the relevance of institutional factors for the start-up decision in tourism. Based on the REDI - Regional Entrepreneurship and Development Index model, this study compares five regional institutional variables of two Portuguese municipalities, and its impact on start-up decision, measured by the number of new tourist businesses created. The study is longitudinal - data from sevenyears (2011-2017) is analysed for both regions. Results suggest the need to adapt generic entrepreneurship indexes to tourism entrepreneurship, with relevant implications for scholars, policy and tourist destination governance.

Full Text: PDF     DOI: 10.15640/jthm.v7n2a14