Determinants of Entrepreneurship in Ambato, Ecuador: Statistical Predictive and Component Modeling

Oscar López-Solís, Alberto Luzuriaga-Jaramillo, Mayra Bedoya-Jara, Joselito Naranjo-Santamaría, Omar Negrete-Costales, Lorena López-Naranjo, Ernesto Jara-Vásquez and Patricia Acosta-Vargas ()
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Oscar López-Solís: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180104, Ecuador
Alberto Luzuriaga-Jaramillo: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180104, Ecuador
Mayra Bedoya-Jara: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180104, Ecuador
Joselito Naranjo-Santamaría: Facultad de Contabilidad y Auditoría, Universidad Técnica de Ambato, Ambato 180104, Ecuador
Omar Negrete-Costales: Facultad de Ciencias Políticas y Administrativas, Universidad Nacional de Chimborazo, Riobamba 060108, Ecuador
Lorena López-Naranjo: Facultad de Ciencias Políticas y Administrativas, Universidad Nacional de Chimborazo, Riobamba 060108, Ecuador
Ernesto Jara-Vásquez: Facultad de Ciencias Administrativas, Universidad Técnica de Ambato, Ambato 180104, Ecuador
Patricia Acosta-Vargas: Intelligent and Interactive Systems Laboratory, Universidad de Las Américas, Quito 170125, Ecuador

Sustainability, 2025, vol. 17, issue 13, 1-25

Abstract: This study investigated the key determinants of entrepreneurship in Ambato, Ecuador, through the application of predictive statistical models. The primary objective was to identify critical variables that influence the success and sustainability of entrepreneurial ventures in the region. A quantitative research design was employed, utilizing multivariate statistical techniques, including decision trees, random forest, and Principal Component Analysis (PCA). Data were collected through structured surveys administered to local entrepreneurs, addressing variables including demographics, education, initial investment, and business operations. The analysis revealed that factors such as geographic location, the entrepreneur’s educational attainment, business tenure, and operational characteristics have a significant influence on entrepreneurial viability. On the basis of these findings, the study proposes a predictive model to assist both policymakers and entrepreneurs in evaluating and enhancing business development strategies. The insights gained offer practical implications: entrepreneurs can refine their strategies for greater effectiveness, while local authorities can craft supportive policies, such as training programs and improved access to financing. The study highlights the importance of entrepreneurship education and targeted support for underdeveloped areas, thereby contributing to broader economic inclusion and enhanced employment opportunities in the region.

Keywords: entrepreneurship; strategy; innovation; financing; policies (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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